2023 -- H 5806

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LC000235

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

     

     Introduced By: Representatives Casey, Newberry, J. Brien, Phillips, Costantino, P.
Morgan, Place, Solomon, and O'Brien

     Date Introduced: February 22, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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amended by adding thereto the following section:

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     44-30-12.1. Out-of-state pension benefits.

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

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

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

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

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

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

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

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

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reached.

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

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

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

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terminate upon the earlier of:

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     (1) The death of the surviving spouse; or

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

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reached.

 

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

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the exemption when residing in another state.

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     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

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

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

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     This act would take effect upon passage.

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