Personal Income Tax

SECTION 44-30-2.10

§ 44-30-2.10. Alternative flat tax rate.

(a) For tax years beginning on or after January 1, 2006 and ending prior to January 1, 2011, a taxpayer may elect to compute his or her Rhode Island personal income tax liability as provided in this section. If no election is made, the taxpayer's personal income tax liability shall be computed as otherwise provided in this chapter.

(b) For purposes of this section, "alternative Rhode Island taxable income" shall mean federal adjusted gross income as determined for federal income tax purposes as modified by §§ 44-30-12 and 44-30-32 for residents and nonresidents, respectively. No other state or federal deductions or adjustments to income shall be available to the taxpayer.

(c) For purposes of this section, the "alternative tax rate" shall be eight percent (8.0%) for the tax year 2006; seven and one-half percent (7.5%) for tax year 2007; seven percent (7%) for tax year 2008; six and one-half percent (6.5%) for tax year 2009; and six percent (6%) for tax year 2010;

(d) The alternative personal income tax shall be determined by multiplying the taxpayer's alternative Rhode Island taxable income by the alternative tax rate, less the following credits:

(1) Credit for income taxes paid to other states as provided for in § 44-30-18;

(2) Credit for Rhode Island personal income tax withheld as provided in § 44-30-74;

(3) Credit for Rhode Island payments of estimated tax as provided in § 44-30-56(e) and RI Reg. Sec. PIT 90-17;

(4) Credit for Rhode Island overpayment of taxes as provided in § 44-30-86(a); and

(5) Credit for Rhode Island amount remitted by a limited liability company on behalf of a nonresident member as provided in § 7-16-73(4).

No other state or federal tax credits shall be available to the taxpayer in computing the alternative personal income tax liability.

(e) The provisions of this section may apply regardless of the taxpayer's filing status.

History of Section.
(P.L. 2006, ch. 246, art. 30, § 8; P.L. 2010, ch. 19, § 2; P.L. 2010, ch. 20, § 2.)