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art.013/5/013/4/013/3/013/2

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     ARTICLE 13 AS AMENDED

RELATING TO TAXES AND REVENUES

     SECTION 1. Section 3-6-1 of the General Laws in Chapter 3-6 entitled "Manufacturing

and Wholesale Licenses" is hereby amended to read as follows:

     3-6-1. Manufacturer's license. -- (a) A manufacturer's license authorizes the holder to

establish and operate a brewery, distillery, or winery at the place described in the license for the

manufacture of beverages within this state. The license does not authorize more than one of the

activities of operator of a brewery or distillery or winery and a separate license shall be required

for each plant.

      (b) The license also authorizes the sale at wholesale at the licensed place by the

manufacturer of the product of the licensed plant to another license holder and the transportation

and delivery from the place of sale to a licensed place or to a common carrier for that delivery.

The license does not authorize the sale of beverages for consumption on premises where sold.

The license does not authorize the sale of beverages in this state for delivery outside this state in

violation of the law of the place of delivery. The license holder may provide to visitors in

conjunction with a tour and/or tasting, samples, clearly marked as samples, not to exceed three

hundred seventy-five milliliters (375 ml) per visitor for distilled spirits and seventy-two ounces

(72 oz) per visitor for malt beverages at the licensed plant by the manufacturer of the product of

the licensed plant to visitors for off-premise consumption. The license does not authorize

providing samples to a visitor of any alcoholic beverages for off-premise consumption that are

not manufactured at the licensed plant.

      (c) The annual fee for the license is three thousand dollars ($3,000) for a distillery

producing more than fifty thousand (50,000) gallons per year and five hundred dollars ($500) for

a distillery producing less than or equal to fifty thousand (50,000) gallons per year, five hundred

dollars ($500) for a brewery, and one thousand five hundred dollars ($1,500) for a winery

producing more than fifty thousand (50,000) gallons per year and five hundred dollars ($500) per

year for a winery producing less than fifty thousand (50,000) gallons per year. All those fees are

prorated to the year ending December 1 in every calendar year and shall be paid to the division of

taxation and be turned over to the general treasurer for the use of the state.

     SECTION 2. Section 3-10-1 of the General Laws in Chapter 3-10 entitled "Taxation of

Beverages" is hereby amended to read as follows:

     3-10-1. Manufacturing tax rates -- Exemption of religious uses. -- (a) There shall be

assessed and levied by the tax administrator on all beverages manufactured, rectified, blended, or

reduced for sale in this state a tax of three dollars and thirty cents ($3.30) on every thirty-one (31)

gallons, and a tax at a like rate for any other quantity or fractional part. On any beverage

manufactured, rectified, blended, or reduced for sale in this state consisting in whole or in part of

wine, whiskey, rum, gin, brandy spirits, ethyl alcohol, or other strong liquors (as distinguished

from beer or other brewery products), the tax to be assessed and levied is as follows:

      (1) Still wines (whether fortified or not), one dollar and forty cents ($1.40) per gallon;

      (2) Still wines (whether fortified or not) made entirely from fruit grown in this state,

thirty cents ($.30) per gallon;

      (3) Sparkling wines (whether fortified or not), seventy five cents ($.75) per gallon;

      (4) Whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in whole

or in part of alcohol that is the product of distillation, five dollars and forty cents ($5.40) per

gallon, except that whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in

whole or in part of alcohol that is the product of distillation but that contains alcohol measuring

thirty (30) proof or less, one dollar and ten cents ($1.10) per gallon;

      (5) Ethyl alcohol to be used for beverage purposes, seven dollars and fifty cents ($7.50)

per gallon; and

      (6) Ethyl alcohol to be used for nonbeverage purposes, eight cents ($.08) per gallon.

      (b) Sacramental wines are not subject to any tax if sold directly to a member of the

clergy for use by the purchaser or his or her congregation for sacramental or other religious

purposes.

      (c) A brewer who brews beer in this state that is actively and directly owned, managed,

and operated by an authorized legal entity that has owned, managed, and operated a brewery in

this state for at least twelve (12) consecutive months, shall receive a tax exemption on the first

one hundred thousand (100,000) barrels of beer that it produces and distributes in this state in any

calendar year. A barrel of beer is thirty one (31) gallons.

     (d) A distiller who distills spirits in this state that is actively and directly owned,

managed, and operated by an authorized legal entity that has owned, managed, and operated a

distillery in this state for at least twelve (12) consecutive months, shall receive a tax exemption on

the first fifty thousand (50,000) gallons of distilled spirits that it produces and distributes in this

state in any calendar year.

     SECTION 3. Section 7-12-56 of the General Laws in Chapter 7-12 entitled

"Partnerships" is hereby amended to read as follows:

     7-12-56. Registered limited liability partnerships. -- (a) To become and to continue as

a registered limited liability partnership, a partnership shall file with the secretary of state an

application or a renewal application, stating the name of the partnership, the address of its

principal office, if the partnership's principal office is not located in this state, the address of a

registered office and the name and address of a registered agent for service of process in this state

which a partnership is required to maintain. In addition, partnerships under this section shall

provide the names and addresses of all resident partners, the place where the business records of

the partnership are maintained, or if more than one location for business records is maintained,

then the principal place of business of the partnership, number, a brief statement of the business

in which the partnership engaged, and that the partnership applies for status or renewal of its

status, as a registered limited liability partnership.

      (b) The application or renewal application is executed by a majority in interest of the

partners or by one or more partners authorized to execute an application or renewal application.

      (c) The application or renewal application is accompanied by a fee of one hundred

dollars ($100) one hundred fifty dollars ($150) for each partner, not to exceed two thousand five

hundred dollars ($2,500) for each partnership's initial filing or subsequent renewal application.

     Renewal applications are to be filed yearly and are to be accompanied by a fee of fifty

dollars ($50.00).

     (d) The secretary of state shall register as a registered limited liability partnership, and

shall renew the registration of any limited liability partnership, any partnership that submits a

completed application or renewal application with the required fee.

      (e) Registration is effective for one year after the date an application is filed, unless

voluntarily withdrawn by filing with the secretary of state a written withdrawal notice executed

by a majority in interest of the partners or by one or more partners authorized to execute a

withdrawal. Registration, whether pursuant to an original application or a renewal application, as

a registered limited liability partnership is renewed if, during the sixty (60) day period preceding

the date the application or renewal application otherwise would have expired, the partnership

filed with the secretary of state a renewal application. A renewal application expires one year

after the date an original application would have expired if the last renewal of the application had

not occurred.

      (f) The status of a partnership as a registered limited liability partnership is not affected

by changes after the filing of an application or a renewal application in the information stated in

the application or renewal application.

      (g) The secretary of state may provide forms for application for or renewal of

registration. Any renewals shall maintain resident partners as set out in this section.

      (h) A partnership that registers as a registered limited liability partnership is not deemed

to have dissolved as a result of that registration and is for all purposes the same partnership that

existed before the registration and continues to be a partnership under the laws of this state. If a

registered limited liability partnership dissolves, a partnership which is a successor to the

registered limited liability partnership and which intends to be a registered limited liability

partnership is not required to file a new application and is deemed to have filed any documents

required or permitted under this chapter which were filed by the predecessor partnership.

      (i) The fact that an application or renewal application is on file in the office of the

secretary of state is notice that the partnership is a registered limited liability partnership and is

notice of all other facts stated in the application or renewal application.

     SECTION 4. Section 7-12-60 of the General Laws in Chapter 7-12 entitled

"Partnerships" is hereby amended to read as follows:

     7-12-60. Filing of returns with the tax administrator -- Annual charge. -- (a) For tax

years beginning on or after January 1, 2012 a limited liability partnership registered under § 7-12-

56, shall file a return in the form and containing the information as prescribed by the tax

administrator as follows:

      (1) If the fiscal year of the limited liability partnership is the calendar year, on or before

the fifteenth (15th) day of April in the year following the close of the fiscal year; and

      (2) If the fiscal year of the limited liability partnership is not a calendar year, on or

before the fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year.

     (b) For tax years beginning after December 31, 2015, a limited liability partnership

registered under §7-12-56, shall file a return in the form and containing the information as

prescribed by the tax administrator and shall be filed on or before the date a federal tax return is

due to be filed, without regard to extension.

      (b)(c) An annual charge, equal to the minimum tax imposed upon a corporation under

subsection 44-11-2(e), shall be due on the filing of the limited liability partnership's return filed

with the tax administrator and shall be paid to the division of taxation.

      (c)(d) The annual charge is delinquent if not paid by the due date for the filing of the

return and an addition of one hundred dollars ($100) to the charge is then due.

     SECTION 5. Section 7-13-69 of the General Laws in Chapter 7-13 entitled "Limited

Partnerships" is hereby amended to read as follows:

     7-13-69. Filing of returns with the tax administrator -- Annual charge. -- (a) For tax

years beginning on or after January 1, 2012 a limited partnership certified under this chapter shall

file a return in the form and containing the information as prescribed by the tax administrator as

follows:

      (1) If the fiscal year of the limited partnership is the calendar year, on or before the

fifteenth (15th) day of April in the year following the close of the fiscal year; and

      (2) If the fiscal year of the limited partnership is not a calendar year, on or before the

fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year.

     (b) For tax years beginning after December 31, 2015, a limited partnership certified under

this chapter shall file a return in the form and containing the information as prescribed by the tax

administrator and shall be filed on or before the date a federal tax return is due to be filed, without

regard to extension.

     (b)(c) An annual charge, equal to the minimum tax imposed upon a corporation under

subsection 44-11-2(e), shall be due on the filing of the limited partnership's return filed with the

tax administrator and shall be paid to the division of taxation.

      (c)(d) The annual charge is delinquent if not paid by the due date for the filing of the

return and an addition of one hundred dollars ($100) to the charge is then due.

     SECTION 6. Section 7-16-67 of the General Laws in Chapter 7-16 entitled "The Rhode

Island Limited Liability Company Act" is hereby amended to read as follows:

     7-16-67. Filing of returns with the tax administrator -- Annual charge. -- (a) A return

in the form and containing the information as the tax administrator may prescribe shall be filed

with the tax administrator by the limited liability company:

      (1) In case the fiscal year of the limited liability company is the calendar year, on or

before the fifteenth day of March in the year following the close of the fiscal year; and

      (2) In case the fiscal year of the limited liability company is not a calendar year, on or

before the fifteenth day of the third month following the close of the fiscal year.

     (b) For tax years on or after January 1, 2016, a return in the form and containing the

information as the tax administrator may prescribe shall be filed with the tax administrator by the

limited liability company and shall be filed on or before the date a federal tax return is due to be

filed, without regard to extension.

      (b)(c) An annual charge shall be due on the filing of the limited liability company's

return filed with the tax administrator and shall be paid to the Division of Taxation as follows:

      (1) If the limited liability company is treated as a corporation for purposes of federal

income taxation, it shall pay the taxes as provided in chapters 11 and 12 of title 44; or

      (2) If the limited liability company is not treated as a corporation for purposes of federal

income taxation, it shall pay a fee in an amount equal to the minimum tax imposed upon a

corporation under § 44-11-2(e). The due date for a limited liability company that is not treated as

a corporation for purposes of federal income taxation shall be on or before the fifteenth (15th) day

of the fourth (4th) month following the close of the fiscal year.

     (d) For tax years on or after January 1, 2016, a return in the form and containing the

information as the tax administrator may prescribe shall be filed with the tax administrator by the

limited liability company and shall be filed on or before the date a federal tax return is due to be

filed, without regard to extension.

     (c)(e) The annual charge is delinquent if not paid by the due date for the filing of the

return and an addition of one hundred dollars ($100.00) to the charge is then due.

     SECTION 7. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled

“Licensing of Health Care Facilities” is hereby amended to read as follows:

     23-17-38.1. Hospitals – Licensing fee. -- (a) There is imposed a hospital licensing fee at

the rate of five and seven hundred forty five thousandths percent (5.745%) upon the net patient

services revenue of every hospital for the hospital's first fiscal year ending on or after January 1,

2013, except that the license fee for all hospitals located in Washington County, Rhode Island

shall be discounted by thirty-seven percent (37%). The discount for Washington County hospitals

is subject to approval by the Secretary of the US Department of Health and Human Services of a

state plan amendment submitted by the executive office of health and human services for the

purpose of pursuing a waiver of the uniformity requirement for the hospital license fee. This

licensing fee shall be administered and collected by the tax administrator, division of taxation

within the department of revenue, and all the administration, collection and other provisions of

chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax

administrator on or before July 13, 2015 and payments shall be made by electronic transfer of

monies to the general treasurer and deposited to the general fund. Every hospital shall, on or

before June 15, 2015, make a return to the tax administrator containing the correct computation of

net patient services revenue for the hospital fiscal year ending September 30, 2013, and the

licensing fee due upon that amount. All returns shall be signed by the hospital's authorized

representative, subject to the pains and penalties of perjury.

     (b)(a) There is also imposed a hospital licensing fee at the rate of five and eight hundred

sixty-two thousandths percent (5.862%) upon the net patient services revenue of every hospital

for the hospital's first fiscal year ending on or after January 1, 2014, except that the license fee for

all hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven

percent (37%). The discount for Washington County hospitals is subject to approval by the

Secretary of the US Department of Health and Human Services of a state plan amendment

submitted by the executive office of health and human services for the purpose of pursuing a

waiver of the uniformity requirement for the hospital license fee. This licensing fee shall be

administered and collected by the tax administrator, division of taxation within the department of

revenue, and all the administration, collection and other provisions of chapter 51 of title 44 shall

apply. Every hospital shall pay the licensing fee to the tax administrator on or before July 11,

2016 and payments shall be made by electronic transfer of monies to the general treasurer and

deposited to the general fund. Every hospital shall, on or before June 13, 2016, make a return to

the tax administrator containing the correct computation of net patient services revenue for the

hospital fiscal year ending September 30, 2014, and the licensing fee due upon that amount. All

returns shall be signed by the hospital's authorized representative, subject to the pains and

penalties of perjury.

     (b) There is also imposed a hospital licensing fee at the rate of five and six hundred fifty-

two thousandths percent (5.652%) upon the net patient services revenue of every hospital for the

hospital's first fiscal year ending on or after January 1, 2015, except that the license fee for all

hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven percent

(37%). The discount for Washington County hospitals is subject to approval by the Secretary of

the US Department of Health and Human Services of a state plan amendment submitted by the

executive office of health and human services for the purpose of pursuing a waiver of the

uniformity requirement for the hospital license fee. This licensing fee shall be administered and

collected by the tax administrator, division of taxation within the department of revenue, and all

the administration, collection and other provisions of chapter 51 of title 44 shall apply. Every

hospital shall pay the licensing fee to the tax administrator on or before July 10, 2017 and

payments shall be made by electronic transfer of monies to the general treasurer and deposited to

the general fund. Every hospital shall, on or before June 14, 2017, make a return to the tax

administrator containing the correct computation of net patient services revenue for the hospital

fiscal year ending September 30, 2015, and the licensing fee due upon that amount. All returns

shall be signed by the hospital's authorized representative, subject to the pains and penalties of

perjury.

     (c) For purposes of this section the following words and phrases have the following

meanings:

     (1) "Hospital" means the actual facilities and buildings in existence in Rhode Island,

licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on

that license, regardless of changes in licensure status pursuant to § 23-17.14 (hospital

conversions) and §23-17-6 (b) (change in effective control), that provides short-term acute

inpatient and/or outpatient care to persons who require definitive diagnosis and treatment for

injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated

Medicaid managed care payment rates for a court-approved purchaser that acquires a hospital

through receivership, special mastership or other similar state insolvency proceedings (which

court-approved purchaser is issued a hospital license after January 1, 2013) shall be based upon

the newly negotiated rates between the court-approved purchaser and the health plan, and such

rates shall be effective as of the date that the court-approved purchaser and the health plan

execute the initial agreement containing the newly negotiated rate. The rate-setting methodology

for inpatient hospital payments and outpatient hospital payments set for the §§ 40-8-

13.4(b)(1)(B)(iii) and 40-8-13.4(b)(2), respectively, shall thereafter apply to negotiated increases

for each annual twelve (12) month period as of July 1 following the completion of the first full

year of the court-approved purchaser's initial Medicaid managed care contract.

     (2) "Gross patient services revenue" means the gross revenue related to patient care

services.

     (3) "Net patient services revenue" means the charges related to patient care services less

(i) charges attributable to charity care; (ii) bad debt expenses; and (iii) contractual allowances.

     (d) The tax administrator shall make and promulgate any rules, regulations, and

procedures not inconsistent with state law and fiscal procedures that he or she deems necessary

for the proper administration of this section and to carry out the provisions, policy, and purposes

of this section.

     (e) The licensing fee imposed by this section shall apply to hospitals as defined herein

that are duly licensed on July 1, 2015 2016, and shall be in addition to the inspection fee imposed

by § 23-17-38 and to any licensing fees previously imposed in accordance with § 23-17-38.1.

     SECTION 8. Section 31-36.1-18 of the General Laws in Chapter 31-36.1 entitled "Fuel

Use Reporting Law" is hereby amended to read as follows:

     31-36.1-18. Disposition of proceeds. -- All money collected under the provisions of this

chapter shall be deposited as general revenues deposited in the intermodal surface transportation

fund as established in §31-36-20 of the general laws.

     SECTION 9. Section 44-11-2 of the General Laws in Chapter 44-11 entitled "Business

Corporation Tax" is hereby amended to read as follows:

     44-11-2. Imposition of tax. [Effective until January 1, 2017.] -- (a) Each corporation

shall annually pay to the state a tax equal to nine percent (9%) of net income, as defined in § 44-

11-11, qualified in § 44-11-12, and apportioned to this state as provided in §§ 44-11-13 -- 44-11-

15, for the taxable year. For tax years beginning on or after January 1, 2015, each corporation

shall annually pay to the state a tax equal to seven percent (7.0%) of net income, as defined in §

44-11-13 - 44-11-15, for the taxable year.

      (b) A corporation shall pay the amount of any tax as computed in accordance with

subsection (a) of this section after deducting from "net income," as used in this section, fifty

percent (50%) of the excess of capital gains over capital losses realized during the taxable year, if

for the taxable year:

      (1) The corporation is engaged in buying, selling, dealing in, or holding securities on its

own behalf and not as a broker, underwriter, or distributor;

      (2) Its gross receipts derived from these activities during the taxable year amounted to at

least ninety percent (90%) of its total gross receipts derived from all of its activities during the

year. "Gross receipts" means all receipts, whether in the form of money, credits, or other valuable

consideration, received during the taxable year in connection with the conduct of the taxpayer's

activities.

      (c) A corporation shall not pay the amount of the tax computed on the basis of its net

income under subsection (a) of this section, but shall annually pay to the state a tax equal to ten

cents ($.10) for each one hundred dollars ($100) of gross income for the taxable year or a tax of

one hundred dollars ($100), whichever tax shall be the greater, if for the taxable year the

corporation is either a "personal holding company" registered under the federal Investment

Company Act of 1940, 15 U.S.C. § 80a-1 et seq., "regulated investment company", or a "real

estate investment trust" as defined in the federal income tax law applicable to the taxable year.

"Gross income" means gross income as defined in the federal income tax law applicable to the

taxable year, plus:

      (1) Any interest not included in the federal gross income; minus

      (2) Interest on obligations of the United States or its possessions, and other interest

exempt from taxation by this state; and minus

      (3) Fifty percent (50%) of the excess of capital gains over capital losses realized during

the taxable year.

      (d) (1) A small business corporation having an election in effect under subchapter S, 26

U.S.C. § 1361 et seq., shall not be subject to the Rhode Island income tax on corporations, except

that the corporation shall be subject to the provisions of subsection (a), to the extent of the income

that is subjected to federal tax under subchapter S. Effective for tax years beginning on or after

January 1, 2015, a small business corporation having an election in effect under subchapter S, 26

U.S.C. § 1261 et seq., shall be subject to the minimum tax under § 44-11-2(e).

      (2) The shareholders of the corporation who are residents of Rhode Island shall include

in their income their proportionate share of the corporation's federal taxable income.

      (3) [Deleted by P.L. 2004, ch. 595. art. 29, § 1.]

      (4) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]

      (e) Minimum tax. - The tax imposed upon any corporation under this section, including a

small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et

seq., shall not be less than four hundred fifty dollars ($450).

     44-11-2. Imposition of tax. [Effective January 1, 2017.] -- (a) Each corporation shall

annually pay to the state a tax equal to nine percent (9%) of net income, as defined in § 44-11-11,

qualified in § 44-11-12, and apportioned to this state as provided in §§ 44-11-13 -- 44-11-15, for

the taxable year. For tax years beginning on or after January 1, 2015, each corporation shall

annually pay to the state a tax equal to seven percent (7.0%) of net income, as defined in § 44-11-

13 - 44-11-15, for the taxable year.

      (b) A corporation shall pay the amount of any tax as computed in accordance with

subsection (a) of this section after deducting from "net income," as used in this section, fifty

percent (50%) of the excess of capital gains over capital losses realized during the taxable year, if

for the taxable year:

      (1) The corporation is engaged in buying, selling, dealing in, or holding securities on its

own behalf and not as a broker, underwriter, or distributor;

      (2) Its gross receipts derived from these activities during the taxable year amounted to at

least ninety percent (90%) of its total gross receipts derived from all of its activities during the

year. "Gross receipts" means all receipts, whether in the form of money, credits, or other valuable

consideration, received during the taxable year in connection with the conduct of the taxpayer's

activities.

      (c) A corporation shall not pay the amount of the tax computed on the basis of its net

income under subsection (a) of this section, but shall annually pay to the state a tax equal to ten

cents ($.10) for each one hundred dollars ($100) of gross income for the taxable year or a tax of

one hundred dollars ($100), whichever tax shall be the greater, if for the taxable year the

corporation is either a "personal holding company" registered under the federal Investment

Company Act of 1940, 15 U.S.C. § 80a-1 et seq., "regulated investment company", or a "real

estate investment trust" as defined in the federal income tax law applicable to the taxable year.

"Gross income" means gross income as defined in the federal income tax law applicable to the

taxable year, plus:

      (1) Any interest not included in the federal gross income; minus

      (2) Interest on obligations of the United States or its possessions, and other interest

exempt from taxation by this state; and minus

      (3) Fifty percent (50%) of the excess of capital gains over capital losses realized during

the taxable year.

      (d) (1) A small business corporation having an election in effect under subchapter S, 26

U.S.C. § 1361 et seq., shall not be subject to the Rhode Island income tax on corporations, except

that the corporation shall be subject to the provisions of subsection (a), to the extent of the income

that is subjected to federal tax under subchapter S. Effective for tax years beginning on or after

January 1, 2015, a small business corporation having an election in effect under subchapter S, 26

U.S.C. § 1261 et seq., shall be subject to the minimum tax under § 44-11-2(e).

      (2) The shareholders of the corporation who are residents of Rhode Island shall include

in their income their proportionate share of the corporation's federal taxable income.

      (3) [Deleted by P.L. 2004, ch. 595. art. 29, § 1.]

      (4) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]

      (e) Minimum tax. - The tax imposed upon any corporation under this section, including a

small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et

seq., shall not be less than four hundred fifty dollars ($450) four hundred dollars ($400)

     44-11-2. Imposition of tax. -- (a) Each corporation shall annually pay to the state a tax

equal to nine percent (9%) of net income, as defined in § 44-11-11, qualified in § 44-11-12, and

apportioned to this state as provided in §§ 44-11-13 -- 44-11-15, for the taxable year. For tax

years beginning on or after January 1, 2015, each corporation shall annually pay to the state a tax

equal to seven percent (7.0%) of net income, as defined in § 44-11-13 - 44-11-15, for the taxable

year.

      (b) A corporation shall pay the amount of any tax as computed in accordance with

subsection (a) of this section after deducting from "net income," as used in this section, fifty

percent (50%) of the excess of capital gains over capital losses realized during the taxable year, if

for the taxable year:

      (1) The corporation is engaged in buying, selling, dealing in, or holding securities on its

own behalf and not as a broker, underwriter, or distributor;

      (2) Its gross receipts derived from these activities during the taxable year amounted to at

least ninety percent (90%) of its total gross receipts derived from all of its activities during the

year. "Gross receipts" means all receipts, whether in the form of money, credits, or other valuable

consideration, received during the taxable year in connection with the conduct of the taxpayer's

activities.

      (c) A corporation shall not pay the amount of the tax computed on the basis of its net

income under subsection (a) of this section, but shall annually pay to the state a tax equal to ten

cents ($.10) for each one hundred dollars ($100) of gross income for the taxable year or a tax of

one hundred dollars ($100), whichever tax shall be the greater, if for the taxable year the

corporation is either a "personal holding company" registered under the federal Investment

Company Act of 1940, 15 U.S.C. § 80a-1 et seq., "regulated investment company", or a "real

estate investment trust" as defined in the federal income tax law applicable to the taxable year.

"Gross income" means gross income as defined in the federal income tax law applicable to the

taxable year, plus:

      (1) Any interest not included in the federal gross income; minus

      (2) Interest on obligations of the United States or its possessions, and other interest

exempt from taxation by this state; and minus

      (3) Fifty percent (50%) of the excess of capital gains over capital losses realized during

the taxable year.

      (d) (1) A small business corporation having an election in effect under subchapter S, 26

U.S.C. § 1361 et seq., shall not be subject to the Rhode Island income tax on corporations, except

that the corporation shall be subject to the provisions of subsection (a), to the extent of the income

that is subjected to federal tax under subchapter S. Effective for tax years beginning on or after

January 1, 2015, a small business corporation having an election in effect under subchapter S, 26

U.S.C. § 1261 et seq., shall be subject to the minimum tax under § 44-11-2(e).

      (2) The shareholders of the corporation who are residents of Rhode Island shall include

in their income their proportionate share of the corporation's federal taxable income.

      (3) [Deleted by P.L. 2004, ch. 595. art. 29, § 1.]

      (4) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]

      (e) Minimum tax. - The tax imposed upon any corporation under this section, including a

small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et

seq., shall not be less than four hundred fifty dollars ($450). For tax years beginning on or after

January 1, 2017 the tax imposed shall not be less than four hundred dollars ($400).

     SECTION 10. Section 44-11-3 of the General Laws in Chapter 44-11 entitled "Business

Corporation Tax" is hereby amended to read as follows:

     44-11-3. Filing of returns -- Due date. – (a) For tax years beginning before January 1,

2016, a A return in the form and containing the information that the tax administrator may

prescribe shall be filed with the tax administrator by the taxpayer:

      (1) In case the taxable year of the taxpayer is the calendar year, on or before March 15 in

the year following the close of the taxable year; and

      (2) In case the taxable year of the taxpayer is a fiscal year, on or before the fifteenth

(15th) day of the third (3rd) month following the close of the fiscal year.

     (b) For tax years beginning after December 31, 2015, a return in the form and containing

the information as the tax administrator may prescribe shall be filed with the tax administrator by

the taxpayer taxed as an S corporation and shall be filed on or before the date a federal tax return

is due to be filed, without regard to extension.

     (c) For tax years beginning after December 31, 2015 a return in the form and containing

the information that the tax administrator may prescribe shall be filed with the tax administrator

by the taxpayer taxed as a C corporation and shall be filed on or before the date a federal return is

due to be filed, without regard to extension.

     (d) Notwithstanding the provisions of subsection (a) and (b) of this section, a C

corporation with a tax year ending June 30 shall, in accordance with federal tax filing

requirements, not change its filing date until mandated by federal law which is currently due to be

effective close of fiscal year ending June 30, 2026.

     SECTION 11. Section 44-13-6 of the General Laws in Chapter 44-13 entitled "Public

Service Corporation Tax" is hereby amended to read as follows:

     44-13-6. Due date of annual return. -- Every corporation shall file a return with the tax

administrator on or before March 1 of each year. For tax years beginning after December 31,

2015, a return in the form and containing the information as the tax administrator may prescribe

shall be filed with the tax administrator by every corporation and shall be filed on or before the

date its federal tax return is due to be filed, without regard to extension.

     SECTION 12. Section 44-14-6 of the General Laws in Chapter 44-14 entitled "Taxation

of Banks" is hereby amended to read as follows:

     44-14-6. Filing of annual return. – (a) Every taxpayer shall file a return with the tax

administrator:

      (1) In case the taxable year of the taxpayer is the calendar year, on or before March 15 in

the year following the close of the taxable year; and

      (2) In case the taxable year of the taxpayer is a fiscal year, on or before the fifteenth

(15th) day of the third (3rd) month following the close of the fiscal year.

     (b) For tax years beginning after December 31, 2015 a return in the form and containing

the information that the tax administrator may prescribe shall be filed with the tax administrator

by the taxpayer on or before the date a federal return is due to be filed, without regard to

extension.

     SECTION 13. Section 44-17-1 of the General Laws in Chapter 44-17 entitled "Taxation

of Insurance Companies" is hereby amended to read as follows:

     44-17-1. Companies required to file -- Payment of tax -- Retaliatory rates. -- Every

domestic, foreign, or alien insurance company, mutual association, organization, or other insurer,

including any health maintenance organization, as defined in § 27-41-1, any medical malpractice

insurance joint underwriters association as defined in § 42-14.1-1, any nonprofit dental service

corporation as defined in § 27-20.1-2 and any nonprofit hospital or medical service corporation,

as defined in chapters 27-19 and 27-20, except companies mentioned in § 44-17-6, and

organizations defined in § 27-25-1, transacting business in this state, shall, on or before March 1

April 15 in each year, file with the tax administrator, in the form that he or she may prescribe, a

return under oath or affirmation signed by a duly authorized officer or agent of the company,

containing information that may be deemed necessary for the determination of the tax imposed by

this chapter, and shall at the same time pay an annual tax to the tax administrator of two percent

(2%) of the gross premiums on contracts of insurance, except for ocean marine insurance, as

referred to in § 44-17-6, covering property and risks within the state, written during the calendar

year ending December 31st next preceding, but in the case of foreign or alien companies, except

as provided in § 27-2-17(d) the tax is not less in amount than is imposed by the laws of the state

or country under which the companies are organized upon like companies incorporated in this

state or upon its agents, if doing business to the same extent in the state or country.

     SECTION 14. Section 44-18-7.3 of the General Laws in Chapter 44-18 entitled "Sales

and Use Taxes - Liability and Computation" is hereby amended to read as follows:

     44-18-7.3. Services defined. -- (a) "Services" means all activities engaged in for other

persons for a fee, retainer, commission, or other monetary charge, which activities involve the

performance of a service in this state as distinguished from selling property.

      (b) The following businesses and services performed in this state, along with the

applicable 2007 North American Industrial Classification System (NAICS) codes, are included in

the definition of services:

      (1) Taxicab and limousine services including but not limited to:

      (i) Taxicab services including taxi dispatchers (485310); and

      (ii) Limousine services (485320).

      (2) Other road transportation service including but not limited to:

      (i) Charter bus service (485510); and

     (ii) "Transportation network companies" (TNC) defined as an entity that uses a digital

network to connect transportation network company riders to transportation network operators

who provide prearranged rides. Any TNC operating in this state is a retailer as provided in §44-

18-15 and is required to file a business application and registration form and obtain a permit to

make sales at retail with the tax administrator, to charge, collect, and remit Rhode Island sales

and use tax; and

      (ii)(iii) All other transit and ground passenger transportation (485999).

      (3) Pet care services (812910) except veterinary and testing laboratories services.

      (4) (i) "Room reseller" or "reseller" means any person, except a tour operator as defined

in § 42-63.1-2, having any right, permission, license, or other authority from or through a hotel as

defined in § 42-63.1-2, to reserve, or arrange the transfer of occupancy of, accommodations the

reservation or transfer of which is subject to this chapter, such that the occupant pays all or a

portion of the rental and other fees to the room reseller or reseller, room reseller or reseller shall

include, but not be limited to, sellers of travel packages as defined in this section.

Notwithstanding the provisions of any other law, where said reservation or transfer of occupancy

is done using a room reseller or reseller, the application of the sales and use under §§ 44-18-18

and 44-18-20, and the hotel tax under § 44-18-36.1 shall be as follows: The room reseller or

reseller is required to register with and shall collect and pay to the tax administrator the sales and

use and hotel taxes, with said taxes being calculated upon the amount of rental and other fees paid

by the occupant to the room reseller or reseller, less the amount of any rental and other fees paid

by the room reseller or reseller to the hotel. The hotel shall collect and pay to the tax

administrator said taxes upon the amount of rental and other fees paid to the hotel by the room

reseller or reseller and/or the occupant. No assessment shall be made by the tax administrator

against a hotel because of an incorrect remittance of the taxes under this chapter by a room

reseller or reseller. No assessment shall be made by the tax administrator against a room reseller

or reseller because of an incorrect remittance of the taxes under this chapter by a hotel. If the

hotel has paid the taxes imposed under this chapter, the occupant and/or room reseller or reseller,

as applicable, shall reimburse the hotel for said taxes. If the room reseller or reseller has paid said

taxes, the occupant shall reimburse the room reseller or reseller for said taxes. Each hotel and

room reseller or reseller shall add and collect from the occupant or the room reseller or the

reseller the full amount of the taxes imposed on the rental and other fees. When added to the

rental and other fees, the taxes shall be a debt owed by the occupant to the hotel or room reseller

or reseller, as applicable, and shall be recoverable at law in the same manner as other debts. The

amount of the taxes collected by the hotel and/or room reseller or reseller from the occupant

under this chapter shall be stated and charged separately from the rental and other fees, and shall

be shown separately on all records thereof, whether made at the time the transfer of occupancy

occurs, or on any evidence of the transfer issued or used by the hotel or the room reseller or the

reseller. A room reseller or reseller shall not be required to disclose to the occupant the amount of

tax charged by the hotel; provided, however, the room reseller or reseller shall represent to the

occupant that the separately stated taxes charged by the room reseller or reseller include taxes

charged by the hotel. No person shall operate a hotel in this state, or act as a room reseller or

reseller for any hotel in the state, unless the tax administrator has issued a permit pursuant to §

44-19-1.

      (ii) "Travel package" means a room or rooms bundled with one or more other, separate

components of travel such as air transportation, car rental or similar items, which travel package

is charged to the customer or occupant for a single retail price. When the room occupancy is

bundled for a single consideration, with other property, services, amusement charges, or any other

items, the separate sale of which would not otherwise be subject to tax under this chapter, the

entire single consideration shall be treated as the rental or other fees for room occupancy subject

to tax under this chapter; provided, however, that where the amount of the rental or other fees for

room occupancy is stated separately from the price of such other property, services, amusement

charges, or other items, on any sales slip, invoice, receipt, or other statement given the occupant,

and such rental and other fees are determined by the tax administrator to be reasonable in relation

to the value of such other property, services, amusement charges or other items, only such

separately stated rental and other fees will be subject to tax under this chapter. The value of the

transfer of any room or rooms bundled as part of a travel package may be determined by the tax

administrator from the room reseller's and/or reseller's and/or hotel's books and records that are

kept in the regular course of business.

     (c) All services as defined herein are required to file a business application and

registration form and obtain a permit to make sales at retail with the tax administrator, to charge,

collect, and remit Rhode Island sales and use tax.

      (c)(d) The tax administrator is authorized to promulgate rules and regulations in

accordance with the provisions of chapter 42-35 to carry out the provisions, policies, and

purposes of this chapter.

     SECTION 15. Section 44-30-2.6 of General Laws in Chapter 44-30 entitled “Personal

Income Tax” is hereby amended to read as follows:

     44-30-2.6. Rhode Island taxable income -- Rate of tax. -- (a) "Rhode Island taxable

income" means federal taxable income as determined under the Internal Revenue Code, 26 U.S.C.

§ 1 et seq., not including the increase in the basic standard deduction amount for married couples

filing joint returns as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003 and

the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and as modified by

the modifications in § 44-30-12.

     (b) Notwithstanding the provisions of §§ 44-30-1 and 44-30-2, for tax years beginning on

or after January 1, 2001, a Rhode Island personal income tax is imposed upon the Rhode Island

taxable income of residents and nonresidents, including estates and trusts, at the rate of twenty-

five and one-half percent (25.5%) for tax year 2001, and twenty-five percent (25%) for tax year

2002 and thereafter of the federal income tax rates, including capital gains rates and any other

special rates for other types of income, except as provided in § 44-30-2.7, which were in effect

immediately prior to enactment of the Economic Growth and Tax Relief Reconciliation Act of

2001 (EGTRRA); provided, rate schedules shall be adjusted for inflation by the tax administrator

beginning in taxable year 2002 and thereafter in the manner prescribed for adjustment by the

commissioner of Internal Revenue in 26 U.S.C. § 1(f). However, for tax years beginning on or

after January 1, 2006, a taxpayer may elect to use the alternative flat tax rate provided in § 44-30-

2.10 to calculate his or her personal income tax liability.

     (c) For tax years beginning on or after January 1, 2001, if a taxpayer has an alternative

minimum tax for federal tax purposes, the taxpayer shall determine if he or she has a Rhode

Island alternative minimum tax. The Rhode Island alternative minimum tax shall be computed by

multiplying the federal tentative minimum tax without allowing for the increased exemptions

under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (as redetermined on federal

form 6251 Alternative Minimum Tax-Individuals) by twenty-five and one-half percent (25.5%)

for tax year 2001, and twenty-five percent (25%) for tax year 2002 and thereafter, and comparing

the product to the Rhode Island tax as computed otherwise under this section. The excess shall be

the taxpayer's Rhode Island alternative minimum tax.

     (1) For tax years beginning on or after January 1, 2005 and thereafter the exemption

amount for alternative minimum tax, for Rhode Island purposes, shall be adjusted for inflation by

the tax administrator in the manner prescribed for adjustment by the commissioner of Internal

Revenue in 26 U.S.C. § 1(f).

     (2) For the period January 1, 2007 through December 31, 2007, and thereafter, Rhode

Island taxable income shall be determined by deducting from federal adjusted gross income as

defined in 26 U.S.C. § 62 as modified by the modifications in § 44-30-12 the Rhode Island

itemized deduction amount and the Rhode Island exemption amount as determined in this section.

     (A) Tax imposed.

     (1) There is hereby imposed on the taxable income of married individuals filing joint

returns and surviving spouses a tax determined in accordance with the following table:

If taxable income is: The tax is:

Not over $53,150 3.75% of taxable income

Over $53,150 but not over $128,500 $1,993.13 plus 7.00% of the excess over $53,150

Over $128,500 but not over $195,850 $7,267.63 plus 7.75% of the excess over $128,500

Over $195,850 but not over $349,700 $12,487.25 plus 9.00% of the excess over $195,850

Over $349,700 $26,333.75 plus 9.90% of the excess over $349,700

     (2) There is hereby imposed on the taxable income of every head of household a tax

determined in accordance with the following table:

If taxable income is: The tax is:

Not over $42,650 3.75% of taxable income

Over $42,650 but not over $110,100 $1,599.38 plus 7.00% of the excess over $42,650

Over $110,100 but not over $178,350 $6,320.88 plus 7.75% of the excess over $110,100

Over $178,350 but not over $349,700 $11,610.25 plus 9.00% of the excess over $178,350

Over $349,700 $27,031.75 plus 9.90% of the excess over $349,700

     (3) There is hereby imposed on the taxable income of unmarried individuals (other than

surviving spouses and heads of households) a tax determined in accordance with the following

table:

If taxable income is: The tax is:

Not over $31,850 3.75% of taxable income

Over $31,850 but not over $77,100 $1,194.38 plus 7.00% of the excess over $31,850

Over $77,100 but not over $160,850 $4,361.88 plus 7.75% of the excess over $77,100

Over $160,850 but not over $349,700 $10,852.50 plus 9.00% of the excess over $160,850

Over $349,700 $27,849.00 plus 9.90% of the excess over $349,700

     (4) There is hereby imposed on the taxable income of married individuals filing separate

returns and bankruptcy estates a tax determined in accordance with the following table:

If taxable income is: The tax is:

Not over $26,575 3.75% of taxable income

Over $26,575 but not over $64,250 $996.56 plus 7.00% of the excess over $26,575

Over $64,250 but not over $97,925 $3,633.81 plus 7.75% of the excess over $64,250

Over $97,925 but not over $174,850 $6,243.63 plus 9.00% of the excess over $97,925

Over $174,850 $13,166.88 plus 9.90% of the excess over $174,850

     (5) There is hereby imposed a taxable income of an estate or trust a tax determined in

accordance with the following table:

If taxable income is: The tax is:

Not over $2,150 3.75% of taxable income

Over $2,150 but not over $5,000 $80.63 plus 7.00% of the excess over $2,150

Over $5,000 but not over $7,650 $280.13 plus 7.75% of the excess over $5,000

Over $7,650 but not over $10,450 $485.50 plus 9.00% of the excess over $7,650

Over $10,450 $737.50 plus 9.90% of the excess over $10,450

     (6) Adjustments for inflation. The dollars amount contained in paragraph (A) shall be

increased by an amount equal to:

     (a) Such dollar amount contained in paragraph (A) in the year 1993, multiplied by;

     (b) The cost-of-living adjustment determined under section (J) with a base year of 1993;

     (c) The cost-of-living adjustment referred to in subparagraph (a) and (b) used in making

adjustments to the nine percent (9%) and nine and nine tenths percent (9.9%) dollar amounts shall

be determined under section (J) by substituting "1994" for "1993."

     (B) Maximum capital gains rates

     (1) In general If a taxpayer has a net capital gain for tax years ending prior to January 1,

2010, the tax imposed by this section for such taxable year shall not exceed the sum of:

     (a) 2.5 % of the net capital gain as reported for federal income tax purposes under section

26 U.S.C. 1(h)(1)(a) and 26 U.S.C. 1(h)(1)(b).

     (b) 5% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.

1(h)(1)(c).

     (c) 6.25% of the net capital gain as reported for federal income tax purposes under 26

U.S.C. 1(h)(1)(d).

     (d) 7% of the net capital gain as reported for federal income tax purposes under 26 U.S.C.

1(h)(1)(e).

     (2) For tax years beginning on or after January 1, 2010 the tax imposed on net capital

gain shall be determined under subdivision 44-30-2.6(c)(2)(A).

     (C) Itemized deductions.

     (1) In general

     For the purposes of section (2) "itemized deductions" means the amount of federal

itemized deductions as modified by the modifications in § 44-30-12.

     (2) Individuals who do not itemize their deductions In the case of an individual who does

not elect to itemize his deductions for the taxable year, they may elect to take a standard

deduction.

     (3) Basic standard deduction. The Rhode Island standard deduction shall be allowed in

accordance with the following table:

     Filing status Amount

     Single $5,350

     Married filing jointly or qualifying widow(er) $8,900

     Married filing separately $4,450

     Head of Household $7,850

     (4) Additional standard deduction for the aged and blind. An additional standard

deduction shall be allowed for individuals age sixty-five (65) or older or blind in the amount of

$1,300 for individuals who are not married and $1,050 for individuals who are married.

     (5) Limitation on basic standard deduction in the case of certain dependents. In the case

of an individual to whom a deduction under section (E) is allowable to another taxpayer, the basic

standard deduction applicable to such individual shall not exceed the greater of:

     (a) $850;

     (b) The sum of $300 and such individual's earned income;

     (6) Certain individuals not eligible for standard deduction. In the case of:

     (a) A married individual filing a separate return where either spouse itemizes deductions;

     (b) Nonresident alien individual;

     (c) An estate or trust;

     The standard deduction shall be zero.

     (7) Adjustments for inflation. Each dollars amount contained in paragraphs (3), (4) and

(5) shall be increased by an amount equal to:

     (a) Such dollar amount contained in paragraphs (3), (4) and (5) in the year 1988,

multiplied by

     (b) The cost-of-living adjustment determined under section (J) with a base year of 1988.

     (D) Overall limitation on itemized deductions

     (1) General rule.

     In the case of an individual whose adjusted gross income as modified by § 44-30-12

exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the

taxable year shall be reduced by the lesser of:

     (a) Three percent (3%) of the excess of adjusted gross income as modified by § 44-30-12

over the applicable amount; or

     (b) Eighty percent (80%) of the amount of the itemized deductions otherwise allowable

for such taxable year.

     (2) Applicable amount.

     (a) In general.

     For purposes of this section, the term "applicable amount" means $156,400 ($78,200 in

the case of a separate return by a married individual)

     (b) Adjustments for inflation. Each dollar amount contained in paragraph (a) shall be

increased by an amount equal to:

     (i) Such dollar amount contained in paragraph (a) in the year 1991, multiplied by

     (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.

     (3) Phase-out of Limitation.

     (a) In general.

     In the case of taxable year beginning after December 31, 2005, and before January 1,

2010, the reduction under section (1) shall be equal to the applicable fraction of the amount which

would be the amount of such reduction.

     (b) Applicable fraction. For purposes of paragraph (a), the applicable fraction shall be

determined in accordance with the following table:

For taxable years beginning in calendar year The applicable fraction is

     2006 and 2007 2/3

     2008 and 2009 1/3

     (E) Exemption amount

     (1) In general.

     Except as otherwise provided in this subsection, the term "exemption amount" mean

$3,400.

     (2) Exemption amount disallowed in case of certain dependents.

     In the case of an individual with respect to whom a deduction under this section is

allowable to another taxpayer for the same taxable year, the exemption amount applicable to such

individual for such individual's taxable year shall be zero.

     (3) Adjustments for inflation.

     The dollar amount contained in paragraph (1) shall be increased by an amount equal to:

     (a) Such dollar amount contained in paragraph (1) in the year 1989, multiplied by

     (b) The cost-of-living adjustment determined under section (J) with a base year of 1989.

     (4) Limitation.

     (a) In general.

     In the case of any taxpayer whose adjusted gross income as modified for the taxable year

exceeds the threshold amount shall be reduced by the applicable percentage.

     (b) Applicable percentage. In the case of any taxpayer whose adjusted gross income for

the taxable year exceeds the threshold amount, the exemption amount shall be reduced by two (2)

percentage points for each $2,500 (or fraction thereof) by which the taxpayer's adjusted gross

income for the taxable year exceeds the threshold amount. In the case of a married individual

filing a separate return, the preceding sentence shall be applied by substituting "$1,250" for

"$2,500." In no event shall the applicable percentage exceed one hundred percent (100%).

     (c) Threshold Amount. For the purposes of this paragraph, the term "threshold amount"

shall be determined with the following table:

     Filing status Amount

     Single $156,400

     Married filing jointly of qualifying widow(er) $234,600

     Married filing separately $117,300

     Head of Household $195,500

     (d) Adjustments for inflation.

     Each dollars amount contain in paragraph (b) shall be increased by an amount equal to:

     (i) Such dollar amount contained in paragraph (b) in the year 1991, multiplied by

     (ii) The cost-of-living adjustment determined under section (J) with a base year of 1991.

     (5) Phase-out of Limitation.

     (a) In general.

     In the case of taxable years beginning after December 31, 2005, and before January 1,

2010, the reduction under section 4 shall be equal to the applicable fraction of the amount which

would be the amount of such reduction.

     (b) Applicable fraction. For the purposes of paragraph (a), the applicable fraction shall

be determined in accordance with the following table:

For taxable years beginning in calendar year The applicable fraction is

     2006 and 2007 2/3

     2008 and 2009 1/3

     (F) Alternative minimum tax

     (1) General rule. - There is hereby imposed (in addition to any other tax imposed by this

subtitle) a tax equal to the excess (if any) of:

     (a) The tentative minimum tax for the taxable year, over

     (b) The regular tax for the taxable year.

     (2) The tentative minimum tax for the taxable year is the sum of:

     (a) 6.5 percent of so much of the taxable excess as does not exceed $175,000, plus

     (b) 7.0 percent of so much of the taxable excess above $175,000.

     (3) The amount determined under the preceding sentence shall be reduced by the

alternative minimum tax foreign tax credit for the taxable year.

     (4) Taxable excess. - For the purposes of this subsection the term "taxable excess" means

so much of the federal alternative minimum taxable income as modified by the modifications in §

44-30-12 as exceeds the exemption amount.

     (5) In the case of a married individual filing a separate return, subparagraph (2) shall be

applied by substituting "$87,500" for $175,000 each place it appears.

     (6) Exemption amount. For purposes of this section "exemption amount" means:

     Filing status Amount

     Single $39,150

     Married filing jointly or qualifying widow(er) $53,700

     Married filing separately $26,850

     Head of Household $39,150

     Estate or trust $24,650

     (7) Treatment of unearned income of minor children

     (a) In general.

     In the case of a minor child, the exemption amount for purposes of section (6) shall not

exceed the sum of:

     (i) Such child's earned income, plus

     (ii) $6,000.

     (8) Adjustments for inflation.

     The dollar amount contained in paragraphs (6) and (7) shall be increased by an amount

equal to:

     (a) Such dollar amount contained in paragraphs (6) and (7) in the year 2004, multiplied

by

     (b) The cost-of-living adjustment determined under section (J) with a base year of 2004.

     (9) Phase-out.

     (a) In general.

     The exemption amount of any taxpayer shall be reduced (but not below zero) by an

amount equal to twenty-five percent (25%) of the amount by which alternative minimum taxable

income of the taxpayer exceeds the threshold amount.

     (b) Threshold amount. For purposes of this paragraph, the term "threshold amount" shall

be determined with the following table:

     Filing status Amount

     Single $123,250

     Married filing jointly or qualifying widow(er) $164,350

     Married filing separately $82,175

     Head of Household $123,250

     Estate or Trust $82,150

     (c) Adjustments for inflation

     Each dollar amount contained in paragraph (9) shall be increased by an amount equal to:

     (i) Such dollar amount contained in paragraph (9) in the year 2004, multiplied by

     (ii) The cost-of-living adjustment determined under section (J) with a base year of 2004.

     (G) Other Rhode Island taxes

     (1) General rule. - There is hereby imposed (in addition to any other tax imposed by this

subtitle) a tax equal to twenty-five percent (25%) of:

     (a) The Federal income tax on lump-sum distributions.

     (b) The Federal income tax on parents' election to report child's interest and dividends.

     (c) The recapture of Federal tax credits that were previously claimed on Rhode Island

return.

     (H) Tax for children under 18 with investment income

     (1) General rule. – There is hereby imposed a tax equal to twenty-five percent (25%) of:

(a) The Federal tax for children under the age of 18 with investment income.

     (I) Averaging of farm income

     (1) General rule. - At the election of an individual engaged in a farming business or

fishing business, the tax imposed in section 2 shall be equal to twenty-five percent (25%) of:

     (a) The Federal averaging of farm income as determined in IRC section 1301.

     (J) Cost-of-living adjustment

     (1) In general.

     The cost-of-living adjustment for any calendar year is the percentage (if any) by which:

     (a) The CPI for the preceding calendar year exceeds

     (b) The CPI for the base year.

     (2) CPI for any calendar year. For purposes of paragraph (1), the CPI for any calendar

year is the average of the Consumer Price Index as of the close of the twelve (12) month period

ending on August 31 of such calendar year.

     (3) Consumer Price Index

     For purposes of paragraph (2), the term "consumer price index" means the last consumer

price index for all urban consumers published by the department of labor. For purposes of the

preceding sentence, the revision of the consumer price index which is most consistent with the

consumer price index for calendar year 1986 shall be used.

     (4) Rounding.

     (a) In general.

     If any increase determined under paragraph (1) is not a multiple of $50, such increase

shall be rounded to the next lowest multiple of $50.

     (b) In the case of a married individual filing a separate return, subparagraph (a) shall be

applied by substituting "$25" for $50 each place it appears.

     (K) Credits against tax. - For tax years beginning on or after January 1, 2001, a taxpayer

entitled to any of the following federal credits enacted prior to January 1, 1996 shall be entitled to

a credit against the Rhode Island tax imposed under this section:

     (1) [Deleted by P.L. 2007, ch. 73, art. 7, § 5].

     (2) Child and dependent care credit;

     (3) General business credits;

     (4) Credit for elderly or the disabled;

     (5) Credit for prior year minimum tax;

     (6) Mortgage interest credit;

     (7) Empowerment zone employment credit;

     (8) Qualified electric vehicle credit.

     (L) Credit against tax for adoption. - For tax years beginning on or after January 1, 2006,

a taxpayer entitled to the federal adoption credit shall be entitled to a credit against the Rhode

Island tax imposed under this section if the adopted child was under the care, custody, or

supervision of the Rhode Island department of children, youth and families prior to the adoption.

     (M) The credit shall be twenty-five percent (25%) of the aforementioned federal credits

provided there shall be no deduction based on any federal credits enacted after January 1, 1996,

including the rate reduction credit provided by the federal Economic Growth and Tax

Reconciliation Act of 2001 (EGTRRA). In no event shall the tax imposed under this section be

reduced to less than zero. A taxpayer required to recapture any of the above credits for federal tax

purposes shall determine the Rhode Island amount to be recaptured in the same manner as

prescribed in this subsection.

     (N) Rhode Island earned income credit

     (1) In general.

     For tax years beginning before January 1, 2015 a taxpayer entitled to a federal earned

income credit shall be allowed a Rhode Island earned income credit equal to twenty-five percent

(25%) of the federal earned income credit. Such credit shall not exceed the amount of the Rhode

Island income tax.

     For tax years beginning on or after January 1, 2015 and before January 1, 2016, a

taxpayer entitled to a federal earned income credit shall be allowed a Rhode Island earned income

credit equal to ten percent (10%) of the federal earned income credit. Such credit shall not exceed

the amount of the Rhode Island income tax.

     For tax years beginning on or after January, 1, 2016, a taxpayer entitled to a federal

earned income credit shall be allowed a Rhode Island earned income credit equal to twelve and

one-half percent (12.5%) of the federal earned income credit. Such credit shall not exceed the

amount of the Rhode Island income tax.

     For tax years beginning on or after January, 1, 2017, a taxpayer entitled to a federal

earned income credit shall be allowed a Rhode Island earned income credit equal to fifteen

percent (15%) of the federal earned income credit. Such credit shall not exceed the amount of the

Rhode Island income tax.

     (2) Refundable portion.

     In the event the Rhode Island earned income credit allowed under paragraph (N)(1) of

this section (J) exceeds the amount of Rhode Island income tax, a refundable earned income

credit shall be allowed as follows.

     (i) For tax years beginning before January 1, 2015, for purposes of paragraph (2)

refundable earned income credit means fifteen percent (15%) of the amount by which the Rhode

Island earned income credit exceeds the Rhode Island income tax.

     (a)(ii) For tax years beginning on or after January 1, 2015, For for purposes of paragraph

(2) refundable earned income credit means one hundred percent (100%) of the amount by which

the Rhode Island earned income credit exceeds the Rhode Island income tax.

     (O) The tax administrator shall recalculate and submit necessary revisions to paragraphs

(A) through (J) to the general assembly no later than February 1, 2010 and every three (3) years

thereafter for inclusion in the statute.

     (3) For the period January 1, 2011 through December 31, 2011, and thereafter, "Rhode

Island taxable income" means federal adjusted gross income as determined under the Internal

Revenue Code, 26 U.S.C. 1 et seq., and as modified for Rhode Island purposes pursuant to § 44-

30-12 less the amount of Rhode Island Basic Standard Deduction allowed pursuant to

subparagraph 44-30-2.6(c)(3)(B), and less the amount of personal exemption allowed pursuant of

subparagraph 44-30-2.6(c)(3)(C).

     (A) Tax imposed.

     (I) There is hereby imposed on the taxable income of married individuals filing joint

returns, qualifying widow(er), every head of household, unmarried individuals, married

individuals filing separate returns and bankruptcy estates, a tax determined in accordance with the

following table:

     RI Taxable Income RI Income Tax

Over But not Over Pay + % On Excess On The Amount Over

$0 - $55,000 $0 + 3.75% $0

55,000 - 125,000 2,063 + 4.75% 55,000

125,000 - 5,388 + 5.99% 125,000

     (II) There is hereby imposed on the taxable income of an estate or trust a tax determined

in accordance with the following table:

     RI Taxable Income RI Income Tax

Over But not Over Pay + % On Excess On The Amount Over

$0 - $2,230 $0 + 3.75% $0

2,230 - 7,022 84 + 4.75% 2,230

7,022 - 312 + 5.99% 7,022

     (B) Deductions:

     (I) Rhode Island Basic Standard Deduction. Only the Rhode Island standard deduction

shall be allowed in accordance with the following table:

     Filing status: Amount

     Single $7,500

     Married filing jointly or qualifying widow(er) $15,000

     Married filing separately $7,500

     Head of Household $11,250

     (II) Nonresident alien individuals, estates and trusts are not eligible for standard

deductions.

     (III) In the case of any taxpayer whose adjusted gross income, as modified for Rhode

Island purposes pursuant to § 44-30-12, for the taxable year exceeds one hundred seventy-five

thousand dollars ($175,000), the standard deduction amount shall be reduced by the applicable

percentage. The term "applicable percentage" means twenty (20) percentage points for each five

thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross income for

the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).

     (C) Exemption Amount:

     (I) The term "exemption amount" means three thousand five hundred dollars ($3,500)

multiplied by the number of exemptions allowed for the taxable year for federal income tax

purposes.

     (II) Exemption amount disallowed in case of certain dependents. In the case of an

individual with respect to whom a deduction under this section is allowable to another taxpayer

for the same taxable year, the exemption amount applicable to such individual for such

individual's taxable year shall be zero.

     (D) In the case of any taxpayer whose adjusted gross income, as modified for Rhode

Island purposes pursuant to § 33-30-12, for the taxable year exceeds one hundred seventy- five

thousand dollars ($175,000), the exemption amount shall be reduced by the applicable

percentage. The term "applicable percentage" means twenty (20) percentage points for each five

thousand dollars ($5,000) (or fraction thereof) by which the taxpayer's adjusted gross income for

the taxable year exceeds one hundred seventy-five thousand dollars ($175,000).

     (E) Adjustment for inflation. - The dollar amount contained in subparagraphs 44-30-

2.6(c)(3)(A), 44-30-2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) shall be increased annually by an amount

equal to:

     (I) Such dollar amount contained in subparagraphs 44-30-2.6(c)(3)(A), 44-30-

2.6(c)(3)(B) and 44-30-2.6(c)(3)(C) adjusted for inflation using a base tax year of 2000,

multiplied by;

     (II) The cost-of-living adjustment with a base year of 2000.

     (III) For the purposes of this section the cost-of-living adjustment for any calendar year is

the percentage (if any) by which the consumer price index for the preceding calendar year

exceeds the consumer price index for the base year. The consumer price index for any calendar

year is the average of the consumer price index as of the close of the twelve (12) month period

ending on August 31, of such calendar year.

     (IV) For the purpose of this section the term "consumer price index" means the last

consumer price index for all urban consumers published by the department of labor. For the

purpose of this section the revision of the consumer price index which is most consistent with the

consumer price index for calendar year 1986 shall be used.

     (V) If any increase determined under this section is not a multiple of fifty dollars

($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the

case of a married individual filing separate return, if any increase determined under this section is

not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower

multiple of twenty-five dollars ($25.00).

     (E) Credits against tax.

     (I) Notwithstanding any other provisions of Rhode Island Law, for tax years beginning on

or after January 1, 2011, the only credits allowed against a tax imposed under this chapter shall be

as follows:

     (a) Rhode Island Earned Income Credit: Credit shall be allowed for earned income credit

pursuant to subparagraph 44-30-2.6(c)(2)(N).

     (b) Property Tax Relief Credit: Credit shall be allowed for property tax relief as provided

in § 44-33-1 et seq.

     (c) Lead Paint Credit: Credit shall be allowed for residential lead abatement income tax

credit as provided in § 44-30.3-1 et seq.

     (d) Credit for income taxes of other states. - Credit shall be allowed for income tax paid

to other states pursuant to § 44-30-74.

     (e) Historic Structures Tax Credit: Credit shall be allowed for historic structures tax

credit as provided in § 44-33.2-1 et seq.

     (f) Motion Picture Productions Tax Credit: Credit shall be allowed for motion picture

production tax credit as provided in § 44-31.2-1 et seq.

     (g) Child and Dependent Care: Credit shall be allowed for twenty-five percent (25%) of

the federal child and dependent care credit allowable for the taxable year for federal purposes;

provided, however, such credit shall not exceed the Rhode Island tax liability.

     (h) Tax credits for contributions to Scholarship Organizations: Credit shall be allowed for

contributions to scholarship organizations as provided in § 44-62 et seq.

     (i) Credit for tax withheld. - Wages upon which tax is required to be withheld shall be

taxable as if no withholding were required, but any amount of Rhode Island personal income tax

actually deducted and withheld in any calendar year shall be deemed to have been paid to the tax

administrator on behalf of the person from whom withheld, and the person shall be credited with

having paid that amount of tax for the taxable year beginning in that calendar year. For a taxable

year of less than twelve (12) months, the credit shall be made under regulations of the tax

administrator.

     (j) Stay Invested in RI Wavemaker Fellowship: Credit shall be allowed for stay invested

in RI wavemaker fellowship program as provided in §42-64.26-1 et seq.

     (k) Rebuild Rhode Island: Credit shall be allowed for rebuild RI tax credit as provided in

§42-64.20-1 et seq.

     (l) Rhode Island Qualified Jobs Incentive Program: Credit shall be allowed for Rhode

Island new qualified jobs incentive program credit as provided in §44-48.3-1 et seq.

     (2) Except as provided in section l above, no other state and federal tax credit shall be

available to the taxpayers in computing tax liability under this chapter.

     SECTION 16. Section 44-30-12 of the General Laws in Chapter 44-30 entitled "Personal

Income Tax" is hereby amended to read as follows:

     44-30-12. Rhode Island income of a resident individual. -- (a) General. - The Rhode

Island income of a resident individual means his or her adjusted gross income for federal income

tax purposes, with the modifications specified in this section.

      (b) Modifications increasing federal adjusted gross income. - There shall be added to

federal adjusted gross income:

      (1) Interest income on obligations of any state, or its political subdivisions, other than

Rhode Island or its political subdivisions;

      (2) Interest or dividend income on obligations or securities of any authority, commission,

or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the

extent exempted by the laws of the United States from federal income tax but not from state

income taxes;

      (3) The modification described in § 44-30-25(g);

      (4) (i) The amount defined below of a nonqualified withdrawal made from an account in

the tuition savings program pursuant to § 16-57-6.1. For purposes of this section, a nonqualified

withdrawal is:

      (A) A transfer or rollover to a qualified tuition program under Section 529 of the Internal

Revenue Code, 26 U.S.C. § 529, other than to the tuition savings program referred to in § 16-57-

6.1; and

      (B) A withdrawal or distribution which is:

      (I) Not applied on a timely basis to pay "qualified higher education expenses" as defined

in § 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;

      (II) Not made for a reason referred to in § 16-57-6.1(e); or

      (III) Not made in other circumstances for which an exclusion from tax made applicable

by Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, pertains if the transfer, rollover,

withdrawal or distribution is made within two (2) taxable years following the taxable year for

which a contributions modification pursuant to subdivision (c)(4) of this section is taken based on

contributions to any tuition savings program account by the person who is the participant of the

account at the time of the contribution, whether or not the person is the participant of the account

at the time of the transfer, rollover, withdrawal or distribution;

      (ii) In the event of a nonqualified withdrawal under subparagraphs (i)(A) or (i)(B) of this

subdivision, there shall be added to the federal adjusted gross income of that person for the

taxable year of the withdrawal an amount equal to the lesser of:

      (A) The amount equal to the nonqualified withdrawal reduced by the sum of any

administrative fee or penalty imposed under the tuition savings program in connection with the

nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the

person's federal adjusted gross income for the taxable year; and

      (B) The amount of the person's contribution modification pursuant to subdivision (c)(4)

of this section for the person's taxable year of the withdrawal and the two (2) prior taxable years

less the amount of any nonqualified withdrawal for the two (2) prior taxable years included in

computing the person's Rhode Island income by application of this subsection for those years.

Any amount added to federal adjusted gross income pursuant to this subdivision shall constitute

Rhode Island income for residents, nonresidents and part-year residents; and

      (5) The modification described in § 44-30-25.1(d)(3)(i).

      (6) The amount equal to any unemployment compensation received but not included in

federal adjusted gross income.

      (7) The amount equal to the deduction allowed for sales tax paid for a purchase of a

qualified motor vehicle as defined by the Internal Revenue Code § 164(a)(6).

      (c) Modifications reducing federal adjusted gross income. - There shall be subtracted

from federal adjusted gross income:

      (1) Any interest income on obligations of the United States and its possessions to the

extent includible in gross income for federal income tax purposes, and any interest or dividend

income on obligations, or securities of any authority, commission, or instrumentality of the

United States to the extent includible in gross income for federal income tax purposes but exempt

from state income taxes under the laws of the United States; provided, that the amount to be

subtracted shall in any case be reduced by any interest on indebtedness incurred or continued to

purchase or carry obligations or securities the income of which is exempt from Rhode Island

personal income tax, to the extent the interest has been deducted in determining federal adjusted

gross income or taxable income;

      (2) A modification described in § 44-30-25(f) or § 44-30-1.1(c)(1);

      (3) The amount of any withdrawal or distribution from the "tuition savings program"

referred to in § 16-57-6.1 which is included in federal adjusted gross income, other than a

withdrawal or distribution or portion of a withdrawal or distribution that is a nonqualified

withdrawal;

      (4) Contributions made to an account under the tuition savings program, including the

"contributions carryover" pursuant to paragraph (iv) of this subdivision, if any, subject to the

following limitations, restrictions and qualifications:

      (i) The aggregate subtraction pursuant to this subdivision for any taxable year of the

taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint

return;

      (ii) The following shall not be considered contributions:

      (A) Contributions made by any person to an account who is not a participant of the

account at the time the contribution is made;

      (B) Transfers or rollovers to an account from any other tuition savings program account

or from any other "qualified tuition program" under section 529 of the Internal Revenue Code, 26

U.S.C. § 529; or

      (C) A change of the beneficiary of the account;

      (iii) The subtraction pursuant to this subdivision shall not reduce the taxpayer's federal

adjusted gross income to less than zero (0);

      (iv) The contributions carryover to a taxable year for purpose of this subdivision is the

excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition

savings program for all preceding taxable years for which this subsection is effective over the

sum of:

      (A) The total of the subtractions under this subdivision allowable to the taxpayer for all

such preceding taxable years; and

      (B) That part of any remaining contribution carryover at the end of the taxable year

which exceeds the amount of any nonqualified withdrawals during the year and the prior two (2)

taxable years not included in the addition provided for in this subdivision for those years. Any

such part shall be disregarded in computing the contributions carryover for any subsequent

taxable year;

      (v) For any taxable year for which a contributions carryover is applicable, the taxpayer

shall include a computation of the carryover with the taxpayer's Rhode Island personal income

tax return for that year, and if for any taxable year on which the carryover is based the taxpayer

filed a joint Rhode Island personal income tax return but filed a return on a basis other than

jointly for a subsequent taxable year, the computation shall reflect how the carryover is being

allocated between the prior joint filers; and

      (5) The modification described in § 44-30-25.1(d)(1).

      (6) Amounts deemed taxable income to the taxpayer due to payment or provision of

insurance benefits to a dependent, including a domestic partner pursuant to chapter 12 of title 36

or other coverage plan.

      (7) Modification for organ transplantation. - (i) An individual may subtract up to ten

thousand dollars ($10,000) from federal adjusted gross income if he or she, while living, donates

one or more of his or her human organs to another human being for human organ transplantation,

except that for purposes of this subsection, "human organ" means all or part of a liver, pancreas,

kidney, intestine, lung, or bone marrow. A subtract modification that is claimed hereunder may be

claimed in the taxable year in which the human organ transplantation occurs.

      (ii) An individual may claim that subtract modification hereunder only once, and the

subtract modification may be claimed for only the following unreimbursed expenses that are

incurred by the claimant and related to the claimant's organ donation:

      (A) Travel expenses.

      (B) Lodging expenses.

      (C) Lost wages.

      (iii) The subtract modification hereunder may not be claimed by a part-time resident or a

nonresident of this state.

      (8) Modification for taxable Social Security income.

      (i) For tax years beginning on or after January 1, 2016:

      (A) For a person who has attained the age used for calculating full or unreduced social

security retirement benefits who files a return as an unmarried individual, head of household or

married filing separate whose federal adjusted gross income for such taxable year is less than

eighty thousand dollars ($80,000); or

      (B) A married individual filing jointly or individual filing qualifying widow(er) who has

attained the age used for calculating full or unreduced social security retirement benefits whose

joint federal adjusted gross income for such taxable year is less than one hundred thousand

dollars ($100,000), an amount equal to the social security benefits includable in federal adjusted

gross income.

      (ii) Adjustment for inflation. - The dollar amount contained in subparagraphs 44-30-

12(c)(8)(i)(A) and 44-30-12(c)(8)(i)(B) shall be increased annually by an amount equal to:

      (A) Such dollar amount contained in subparagraphs 44-30-12(c)(8)(i)(A) and 44-30-

12(c)(8)(i)(B) adjusted for inflation using a base tax year of 2000, multiplied by;

      (B) The cost-of-living adjustment with a base year of 2000.

      (iii) For the purposes of this section the cost-of-living adjustment for any calendar year is

the percentage (if any) by which the consumer price index for the preceding calendar year

exceeds the consumer price index for the base year. The consumer price index for any calendar

year is the average of the consumer price index as of the close of the twelve (12) month period

ending on August 31, of such calendar year.

      (iv) For the purpose of this section the term "consumer price index" means the last

consumer price index for all urban consumers published by the department of labor. For the

purpose of this section the revision of the consumer price index which is most consistent with the

consumer price index for calendar year 1986 shall be used.

      (v) If any increase determined under this section is not a multiple of fifty dollars

($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the

case of a married individual filing separate return, if any increase determined under this section is

not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower

multiple of twenty-five dollars ($25.00).

     (9) Modification for up to fifteen thousand dollars ($15,000) of taxable retirement income

from certain pension plans or annuities.

     (i) For tax years beginning on or after January 1, 2017 a modification shall be allowed for

up to fifteen thousand dollars ($15,000) of taxable pension and/or annuity income that is included

in federal adjusted gross income for the taxable year:

     (A) For a person who has attained the age used for calculating full or unreduced social

security retirement benefits who files a return as an unmarried individual, head of household or

married filing separate whose federal adjusted gross income for such taxable year is less than the

amount used for the modification contained in §44-30-12(c)(8)(i)(A) an amount not to exceed

$15,000 of taxable pension and/or annuity income includable in federal adjusted gross income; or

     (B) For a married individual filing jointly or individual filing qualifying widow(er) who

has attained the age used for calculating full or unreduced social security retirement benefits

whose joint federal adjusted gross income for such taxable year is less than the amount used for

the modification contained in §44-30-12(c)(8)(i)(B) an amount not to exceed $15,000 of taxable

pension and/or annuity income includable in federal adjusted gross income.

     (ii) Adjustment for inflation. The dollar amount contained by reference in §§44-30-

12(c)(9)(i)(A) and 44-30-12(c)(9)(i)(B) shall be increased annually for tax years beginning on or

after January 1, 2018 by an amount equal to:

     (A) Such dollar amount contained by reference in §§44-30-12(c)(9)(i)(A) and 44-30-

12(c)(9)(i)(B) adjusted for inflation using a base tax year of 2000, multiplied by;

     (B) The cost-of-living adjustment with a base year of 2000.

     (iii) For the purposes of this section the cost-of-living adjustment for any calendar year is

the percentage (if any) by which the consumer price index for the preceding calendar year

exceeds the consumer price index for the base year. The consumer price index for any calendar

year is the average of the consumer price index as of the close of the twelve (12) month period

ending on August 31, of such calendar year.

     (iv) For the purpose of this section the term "consumer price index" means the last

consumer price index for all urban consumers published by the department of labor. For the

purpose of this section the revision of the consumer price index which is most consistent with the

consumer price index for calendar year 1986 shall be used.

     (v) If any increase determined under this section is not a multiple of fifty dollars

($50.00), such increase shall be rounded to the next lower multiple of fifty dollars ($50.00). In the

case of a married individual filing a separate return, if any increase determined under this section

is not a multiple of twenty-five dollars ($25.00), such increase shall be rounded to the next lower

multiple of twenty-five dollars ($25.00).

     (d) Modification for Rhode Island fiduciary adjustment. - There shall be added to or

subtracted from federal adjusted gross income (as the case may be) the taxpayer's share, as

beneficiary of an estate or trust, of the Rhode Island fiduciary adjustment determined under § 44-

30-17.

      (e) Partners. - The amounts of modifications required to be made under this section by a

partner, which relate to items of income or deduction of a partnership, shall be determined under

§ 44-30-15.

     SECTION 17. Section 44-31.2-11 of the General Laws in Chapter 44-31.2 entitled

"Motion Picture Production Tax Credits" is hereby amended to read as follows:

     44-31.2-11. Sunset. -- No credits shall be issued on or after July 1, 2019 2021 unless the

production has received initial certification under subsection 44-31.2-6(a) prior to July 1, 2019

2021.

     SECTION 18. Section 44-33.6-11 of the General Laws in Chapter 44-33.6 entitled

"Historic Preservation Tax Credits 2013" is hereby amended to read as follows:

     44-33.6-11. Sunset. -- No credits shall be authorized to be reserved pursuant to this

chapter on or after June 30, 2016 2017 or upon the exhaustion of the maximum aggregate credits,

whichever comes first.

     SECTION 19. Section 42-17.1-9.1 of the General Laws in Chapter 42-17.1 entitled

"Department of Environmental Management" is hereby amended to read as follows:

     42-17.1-9.1. User fees at state beaches, parks, and recreation areas. -- (a) The

department of environmental management in pursuance of its administrative duties and

responsibilities may charge a user fee for any state beach, or recreational area under its

jurisdiction, and fees for the use of its services or facilities.

      (b) The fee may be on a daily or annual basis, or both, and may be based on vehicle

parking or other appropriate means. The fees may recognize the contribution of Rhode Island

taxpayers to support the facilities in relation to other users of the state's facilities. The fee

structure may acknowledge the need to provide for all people, regardless of circumstances.

      (c) An additional fee for camping and other special uses may be charged where

appropriate. Rates so charged should be comparable to equivalent commercial facilities.

      (d) All such fees shall be established after a public hearing.

      (e) All daily fees from beach parking, which shall also include fees charged and

collected at Ninigret conservation area and Charlestown breachway, shall be shared with the

municipality in which the facility is located on the basis of eighty-four percent (84%) seventy-

three percent (73%) retained by the state and sixteen percent (16%) twenty-seven percent (27%)

remitted to the municipality; provided, further, from July 1, 2016 until October 1, 2016 the beach

fees charged and collected under this subsection shall be equal to those in effect on June 30,

2011. Further, purchasers of season passes between May 14, 2016 and June 30, 2016 shall be

eligible to receive a credit for the difference between the amount of the July 1, 2016 fee and the

amount originally paid. Said credits may be applied against the purchase of a season pass in 2017.

      (f) Fifty percent (50%) of all user and concession fees received by the state shall be

deposited as general revenues. For the year beginning July 1, 1979, the proportion of user and

concession fees to be received by the state shall be sixty-five percent (65%); for the year

beginning July 1, 1980, eighty-five percent (85%); and for the year beginning July 1, 1981, and

all years thereafter, one hundred percent (100%). The general revenue monies appropriated are

hereby specifically dedicated to meeting the costs of development, renovation of, and acquisition

of state-owned recreation areas and for regular maintenance, repair and operation of state owned

recreation areas. Purchases of vehicles and equipment and repairs to facilities shall not exceed

four hundred thousand dollars ($400,000) annually. Notwithstanding the provisions of § 37-1-1 or

any other provision of the general laws, the director of the department of environmental

management is hereby authorized to accept any grant, devise, bequest, donation, gift, or

assignment of money, bonds, or other valuable securities for deposit in the same manner as

provided above for user and concession fees retained by the state.

      (g) No fee shall be charged to any school or other nonprofit organization provided that a

representative of the school or other organization gives written notice of the date and time of their

arrival to the facility.

     SECTION 20. Sections 4, 5, 6, 10, 11, 12, and 13 shall take effect upon passage and shall

apply to tax years beginning on or after January 1, 2016. Sections 9, 15, and 16 shall take effect

as of January 1, 2017. The remainder of the article shall take effect as of July 1, 2016.