2015 -- S 0014

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LC000431

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION - PERSONAL INCOME TAX

     

     Introduced By: Senators Lombardi, Felag, McCaffrey, Cote, and Walaska

     Date Introduced: January 13, 2015

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is

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hereby amended by adding thereto the following section:

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     44-30-12.1. Pension benefits excluded from taxation. -- Any resident of the state of

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Rhode Island who collects a pension that originated in another state which collects income tax,

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may have that portion of their pension to which they contributed and said contribution was

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already taxed by the state in which it was earned, be exempt from a state tax in Rhode Island

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providing said state indicates on the 1099-R report the pension earned and the pension that should

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be taxed. The state of Rhode Island shall use the Simplified General Rule similar to that used by

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the federal government in proportioning the part already taxed over a period of time instead of in

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one lump sum or some other means devised by the state of Rhode Island. This exclusion may

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only occur if the person has not made use of it when residing in another state.

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     SECTION 2. This act shall take effect upon passage.

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LC000431

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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 exclude from Rhode Island state taxation pension benefits that originate in

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and were subject to taxation in another state.

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     This act would take effect upon passage.

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