2023 -- S 0265 | |
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LC000943 | |
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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 -- SURPLUS FUNDS TAX CREDIT ACT | |
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Introduced By: Senators Rogers, DeLuca, E Morgan, de la Cruz, Paolino, Burke, | |
Date Introduced: February 16, 2023 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by |
2 | adding thereto the following chapter: |
3 | CHAPTER 71 |
4 | SURPLUS FUNDS TAX CREDIT ACT |
5 | 44-71-1. Title. |
6 | This chapter shall be known and may be cited as the "Surplus Funds Tax Credit Act." |
7 | 44-71-2. Tax credit resulting in taxpayer refund. |
8 | (a) If net state tax revenues in any fiscal year exceed the projected revenue estimates as |
9 | contained in the budget for said fiscal year the amount of such excess, as determined by the state |
10 | budget officer and reported to the director of the department of revenue by September 1 of each |
11 | fiscal year, shall result in a credit equal to the total amount of such excess. The credit shall be |
12 | applied to the then current personal income tax liability of all taxpayers on a proportional basis to |
13 | the personal income tax liability incurred by all taxpayers in the immediately preceding taxable |
14 | year. |
15 | (b) Upon receipt of the report by the director required in subsection (a) of this section, the |
16 | state budget officer shall then make the determination as to whether the net state tax revenue |
17 | exceeds the projected revenue estimates as contained in the budget and by what amount, if any, on |
18 | or before September 20 of each fiscal year. |
19 | (c) The excess shall be calculated and the excess amount shall be refunded to the taxpayers |
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1 | in proportion to the personal income tax liability incurred by the taxpayers in the immediately |
2 | preceding taxable year. The percentage to determine the amount of the refund in dollars shall be |
3 | calculated by the director. |
4 | 44-71-3. Enforceability by taxpayers. |
5 | The supreme court or superior court may, upon the petition of not less than twenty-eight |
6 | (28) taxable inhabitants of the state, not more than seven (7) of whom shall be from any one county, |
7 | enforce the provisions of this chapter. If successful, said taxable inhabitants shall be entitled to |
8 | recover reasonable attorneys' fees and other costs from the state incurred in maintaining such suit. |
9 | 44-71-4. Rules and regulations. |
10 | The director shall take such action and shall have the authority to promulgate such rules |
11 | and regulations as are necessary to implement the provisions of this chapter. |
12 | SECTION 2. This act shall take effect on July 1, 2023. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TAXATION -- SURPLUS FUNDS TAX CREDIT ACT | |
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1 | This act would mandate that any surplus state tax revenue received in any fiscal year would |
2 | be refunded to the taxpayers of this state on a proportional basis in relation to the personal income |
3 | tax liability incurred by the taxpayers in that fiscal year. |
4 | This act would take effect on July 1, 2023. |
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