2016 -- S 2270

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LC003971

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION - PERSONAL INCOME TAX

     Introduced By: Senators Lombardi, Conley, Lombardo, Ruggerio, and Archambault

     Date Introduced: February 09, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

hereby amended by adding thereto the following section:

     44-30-12.1. Certain pension benefits partially excluded from taxation. -- Any resident

of the state of Rhode Island who collects a pension that originated in another state which collects

income tax, may have that portion of their pension to which they contributed and said

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

Rhode Island providing said state indicates on the 1099-R report the pension earned and the

pension that should be taxed. The state of Rhode Island shall use the Simplified General Rule

similar to that used by the federal government in proportioning the part already taxed over a

period of time instead of in one lump sum or some other means devised by the state of Rhode

Island. This exclusion may only occur if the person has not made use of it when residing in

another state.

     SECTION 2. This act shall take effect upon passage.

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LC003971

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - PERSONAL INCOME TAX

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     This act would exclude from Rhode Island state taxation portions of pension benefits that

originate in and were subject to taxation in another state.

     This act would take effect upon passage.

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LC003971

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