2023 -- H 5806 | |
======== | |
LC000235 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2023 | |
____________ | |
A N A C T | |
RELATING TO TAXATION -- PERSONAL INCOME TAX | |
| |
Introduced By: Representatives Casey, Newberry, J. Brien, Phillips, Costantino, P. | |
Date Introduced: February 22, 2023 | |
Referred To: House 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 hereby |
2 | 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 another |
5 | state which collects income tax, may have that portion of their pension to which they contributed, |
6 | and said contribution having been already taxed by the state in which it was earned, exempted from |
7 | any income tax imposed in Rhode Island; provided, the taxpayer, or the taxpayer's surviving spouse |
8 | as provided in subsection (b) of this section, furnishes to the division of taxation a statement, on |
9 | letterhead of the state institution to which said contributions were made, of the total contributions |
10 | made by the taxpayer to their pension. The exemption shall be credited against the total amount |
11 | contributed by the taxpayer until the total amount of the taxpayer's pension contribution has been |
12 | 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. |
| |
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. |
======== | |
LC000235 | |
======== | |
| LC000235 - Page 2 of 3 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TAXATION -- PERSONAL INCOME TAX | |
*** | |
1 | This act would exempt Rhode Island residents and their surviving spouse from state |
2 | taxation of certain pension benefits that originate from, and were taxed in another state up to the |
3 | amount of the total pension contributions made by the deceased taxpayer. |
4 | This act would take effect upon passage. |
======== | |
LC000235 | |
======== | |
| LC000235 - Page 3 of 3 |