Bill > S2361

This bill, effective upon passage, would impose a one percent (1%) wealth tax on Rhode Island residents, which includes individuals and entities domiciled or operating within the state, on their worldwide wealth, defined as the fair market value of all intangible assets they own or control. The tax is calculated on "taxable worldwide wealth," which excludes certain intangible property, and is generally assessed as of December 31st of the tax year, with specific provisions for individuals who die during the year. The bill defines various terms such as "artificial person" (a business entity), "cash and cash equivalents," "fair market value," and different types of "intangible assets" (both financial, like stocks and cryptocurrency, and nonfinancial, like trademarks and customer lists). It outlines tax filing and payment deadlines, generally April 15th, with requirements for electronic filing and payment, and includes penalties for late filings and substantial valuation understatements. Notably, the bill provides an exemption for up to $25 million of a taxpayer's financial intangible assets, exempts nonfinancial intangible assets and the worldwide wealth of artificial persons from the tax, and offers a credit for similar wealth taxes paid to other states. It also includes provisions for "innocent spouse relief" for individuals filing jointly who were unaware of tax understatements due to their spouse's reporting, and mandates audits of a percentage of taxpayers.

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