2022 -- H 7655

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LC003868

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

     Introduced By: Representatives Casey, Phillips, Newberry, and Edwards

     Date Introduced: March 02, 2022

     Referred To: House 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. Out-of-state pension benefits.

     (a) A resident of the state of Rhode Island who collects a pension that originates in another

state which collects income tax, may have that portion of their pension to which they contributed,

and said contribution having been already taxed by the state in which it was earned, exempted from

any income tax imposed in Rhode Island; provided, the taxpayer, or the taxpayer's surviving spouse

as provided in subsection (b) of this section, furnishes to the division of taxation a statement, on

letterhead of the state institution to which said contributions were made, of the total contributions

made by the taxpayer to their pension. The exemption shall be credited against the total amount

contributed by the taxpayer until the total amount of the taxpayer's pension contribution has been

reached.

     (b) In the event of the taxpayer's death, the exemption shall cease; provided, however, if a

taxpayer's surviving spouse receives a reduced amount of the deceased taxpayer's pension, then in

such event, the surviving spouse shall be eligible to receive the exemption. The exemption shall

terminate upon the earlier of:

     (1) The death of the surviving spouse; or

     (2) The limit of the total pension contributions made by the deceased taxpayer has been

reached.

     (c) The exemption contained in this section shall only occur if the taxpayer has not used

the exemption when residing in another state.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

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     This act would exempt Rhode Island residents and their surviving spouse from state

taxation of certain pension benefits that originate from, and were taxed in another state up to the

amount of the total pension contributions made by the deceased taxpayer.

     This act would take effect upon passage.

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