2014 -- H 7418

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LC004171

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

     

     Introduced By: Representatives Trillo, Corvese, Costa, Morgan, and Giarrusso

     Date Introduced: February 12, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-30-1 of the General Laws in Chapter 44-30 entitled "Personal

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Income Tax" is hereby amended to read as follows:

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     44-30-1. Persons subject to tax. -- (a) Imposition of tax. - A Rhode Island personal

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income tax determined in accordance with the rates set forth in section 44-30-2 is imposed for

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each taxable year (which shall be the same as the taxable year for federal income tax purposes) on

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the Rhode Island income of every individual, estate, and trust; provided, however, that such tax

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shall not be imposed on the income of any individual who has reached full retirement age as

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defined by the Social Security Administration.

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      (b) Partners and partnerships. - A partnership as such shall not be subject to the Rhode

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Island personal income tax. Persons carrying on business as partners shall be liable for the Rhode

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Island personal income tax only in their separate or individual capacities.

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      (c) Associations taxable as corporations. - An association, trust, or other unincorporated

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organization, which is taxable as a corporation under the provisions of chapter 11 of this title,

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shall not be subject to the Rhode Island personal income tax.

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      (d) Exempt trusts and organizations. - A trust or other unincorporated organization,

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which by reason of its purposes or activities is exempt from federal income tax, shall be exempt

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from the Rhode Island personal income tax, except with respect to its unrelated business taxable

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income.

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      (e) Cross references. - For definitions of Rhode Island income of:

 

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      (1) Resident individuals, see section 44-30-12.

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      (2) Resident estate or trust, see section 44-30-16.

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      (3) Nonresident individual, see section 44-30-32.

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      (4) Nonresident estate or trust, see section 44-30-35.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

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     This act would exempt from the Rhode Island personal income tax the income of any

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individual who has reached full retirement age as defined by the Social Security Administration.

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     This act would take effect upon passage.

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LC004171

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