Title 44
Taxation

Chapter 22
Estate and Transfer Taxes — Liability and Computation

§ 44-22-1. Tax on net estate of decedents — Additional tax on postponed enjoyment — Deductions — Marital deduction.

(a) A tax is imposed upon the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to transfer. The tax is imposed at the rate of two percent (2%) upon all amounts not in excess of twenty-five thousand dollars ($25,000); at the rate of three percent (3%) upon all amounts in excess of twenty-five thousand dollars ($25,000) and not exceeding fifty thousand dollars ($50,000); at the rate of four percent (4%) upon all amounts in excess of fifty thousand dollars ($50,000) and not exceeding one hundred thousand dollars ($100,000); at the rate of five percent (5%) upon all amounts in excess of one hundred thousand dollars ($100,000) and not exceeding two hundred fifty thousand dollars ($250,000); at the rate of six percent (6%) upon all amounts in excess of two hundred fifty thousand dollars ($250,000) and not exceeding five hundred thousand dollars ($500,000); at the rate of seven percent (7%) upon all amounts in excess of five hundred thousand dollars ($500,000) and not exceeding seven hundred fifty thousand dollars ($750,000); at the rate of eight percent (8%) upon all amounts in excess of seven hundred fifty thousand dollars ($750,000) and not exceeding one million dollars ($1,000,000); at the rate of nine percent (9%) upon all amounts in excess of one million dollars ($1,000,000). An additional tax is imposed at the rate of two percent (2%) upon all or any part of each estate devised, bequeathed, or conveyed in such manner that it becomes necessary to postpone the assessment of taxes imposed by this chapter until the person entitled to the estate comes into beneficial enjoyment or possession of the estate; and provided, further, that an additional tax is not assessed and collected, as provided in §§ 44-23-9 — 44-23-12, in case a settlement of taxes is effected under the provisions of § 44-23-25.

(b) In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the tax twenty-five thousand dollars ($25,000).

(c) In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the tax all property or interests transferred to any corporation, association, or institution located in Rhode Island which is exempt from taxation by charter or under the laws of this state; or to any corporation, association, or institution located outside of this state, which if located within this state, would be exempt from taxation; provided, that the state of domicile of the corporation, association, or institution allows a reciprocal exemption to any similar Rhode Island corporation, association, or institution; or to any person in trust for the same or for use by the same for charitable purposes; or to any city or town in this state for public purposes.

(d) In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the tax United States civil and federal military service annuity payments.

(e) In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the estate tax a marital deduction, as defined in 26 U.S.C. § 2056, in the amount of one hundred seventy-five thousand dollars ($175,000), from property or beneficial interests which pass or have passed from the decedent to the surviving spouse, but only to the extent that the interests are included in determining the value of the gross estate.

(f)(1) In computing the value of the net estate in subsection (a) of this section, there is deducted from the estate and exempted from the estate tax, an orphan’s deduction, provided, that: (i) the decedent does not have a surviving spouse, and (ii) the decedent is survived by a minor child who, immediately after the death of the decedent, has no known parent, an amount equal to the value of any interest in property which passes or has passed from the decedent to the child, but only to the extent that the interest is included in determining the value of the gross estate. The aggregate amount of the deductions allowed under this section (computed without regard to this subsection) with respect to interests in property passing to any minor child shall not exceed an amount equal to five thousand dollars ($5,000) multiplied by the excess of twenty-one (21) over the age (in years) which the child has attained on the date of the decedent’s death.

(2) For purposes of this subsection, any term used in the subsection has the same meaning as when used in a comparable context in 26 U.S.C. § 2057 unless a different meaning is clearly required.

(g) Notwithstanding any other provisions of this chapter, the total estate tax payment on account of the estate of a decedent whose death occurs on or after January 1, 1986, is that percentage of the estate tax which would be payable under this chapter determined in accordance with the following schedule:

(1) Death prior to January 1, 1987. Ninety percent (90%) in the case of decedents whose deaths occur on or after January 1, 1986, and prior to January 1, 1987;

(2) Death prior to January 1, 1988. Eighty percent (80%) in the case of decedents whose deaths occur on or after January 1, 1987, and prior to January 1, 1988;

(3) Death prior to January 1, 1989. Sixty percent (60%) in the case of decedents whose deaths occur on or after January 1, 1988, and prior to January 1, 1989;

(4) Death prior to January 1, 1990. Forty percent (40%) in the case of decedents whose deaths occur on or after January 1, 1989, and prior to January 1, 1990;

(5) Death prior to June 1, 1990. Twenty percent (20%) in the case of decedents whose deaths occur on or after January 1, 1990, and prior to June 1, 1990;

(6) Death prior to January 1, 1992. Forty percent (40%) in the case of decedents whose deaths occur on or after June 1, 1990, and prior to January 1, 1992.

(7) Death on or after January 1, 1992. The estate tax payable on or account of the estate of a decedent whose death occurs on or after January 1, 1992, is determined in accordance with § 44-22-1.1.

(h) The estate tax payable under this section shall in no event be less than the estate tax due under § 44-22-1.1, computed without regard to the date of death.