2019 -- S 0763 | |
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LC002369 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2019 | |
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A N A C T | |
RELATING TO TAXATION -- PERSONAL INCOME TAX | |
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Introduced By: Senators Murray, Lawson, Pearson, Sosnowski, and Miller | |
Date Introduced: April 04, 2019 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is |
2 | hereby amended by adding thereto the following section: |
3 | 44-30-12.1. Out-of-state pension benefits. |
4 | (a) A resident of the state of Rhode Island who collects a pension that originates in |
5 | another state which collects income tax, may have that portion of their pension to which they |
6 | contributed, and said contribution having been already taxed by the state in which it was earned, |
7 | exempted from any income tax imposed in Rhode Island; provided, the taxpayer, or the taxpayer's |
8 | surviving spouse as provided in subsection (b) of this section, furnishes to the division of taxation |
9 | a statement, on letterhead of the state institution to which said contributions were made, of the |
10 | total contributions made by the taxpayer to their pension. The exemption shall be credited against |
11 | the total amount contributed by the taxpayer until the total amount of the taxpayer's pension |
12 | contribution has been reached. |
13 | (b) In the event of the taxpayer's death, the exemption shall cease; provided, however, if a |
14 | taxpayer's surviving spouse receives a reduced amount of the deceased taxpayer's pension, then in |
15 | such event, the surviving spouse shall be eligible to receive the exemption. The exemption shall |
16 | terminate upon the earlier of: |
17 | (1) The death of the surviving spouse; or |
18 | (2) The limit of the total pension contributions made by the deceased taxpayer has been |
19 | reached. |
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1 | (c) The exemption contained in this section shall only occur if the taxpayer has not used |
2 | the exemption when residing in another state. |
3 | SECTION 2. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TAXATION -- PERSONAL INCOME TAX | |
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1 | This act would exempt from state taxation certain pension benefits that originate from, |
2 | and were taxed in another state. |
3 | This act would take effect upon passage. |
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