Rhode Island Tax Changes - October 2024
Week Of 10.07.2024
Rhode Island Property and Personal Tax Changes.
Rhode Island has established a new voluntary deduction from personal income tax refunds for contributions to the behavioral health, education, training, and coordination fund. This deduction is available for returns filed for tax years ending on or after December 31, 2024. The law also sets a sunset date of December 31, 2023 for the refund deduction for contributions to the substance use and mental health leadership council.
The Town of Smithfield has been authorized to exempt from taxation real and tangible personal property used for industrial purposes. The exemption period has been extended from 10 to 20 years.
Week Of 09.30.2024
Rhode Island Banking Institution Tax Changes.
- Net Income Allocation and Apportionment: Rhode Island has passed legislation allowing banking institutions to choose how they allocate and apportion their net income. This option is available to institutions with business activity both inside and outside of Rhode Island.
- Election Process: Banking institutions can elect to allocate and apportion their net income by filing a specific form with their tax return. The election takes effect in the year it's made and continues for all subsequent years.
- Revoking the Election: After a minimum of five years, institutions can apply to the tax administrator to revoke the election if there's a significant change in facts or law.
- Combined Reporting Study: Rhode Island has authorized a combined reporting study for banking institutions that are part of a unitary business. These institutions must file a report for the combined group, including the combined net income, for the tax year beginning after December 31, 2023, but before January 1, 2026.
These changes are effective for tax years beginning on or after January 1, 2025.
Rhode Island authorizes tax notice and property tax by mail to be waived.
Rhode Island has passed a law allowing municipalities to develop programs to provide adequate notice of property taxes through other digital or electronic means. This means that municipalities can now opt to waive the requirement to send tax bills via mail and instead use other methods of communication.
Rhode Island authorizes City of Woonsocket to reassess taxes and property taxes for new construction.
The City of Woonsocket has been authorized to reassess property taxes on a prorated basis for new construction. This means that property taxes for new construction will be assessed from the earlier of: the date of issuance of the certificate of use and occupancy; or the date on which the new construction is first used for the purpose for which it was constructed.
Week Of 10.07.2024
Rhode Island Personal Income Tax—Rhode Island provides checkoff for the behavioral health education, training, and coordination fund.
L. 2024, H8160 (c. 394), effective 06/26/2024, provides a voluntary deduction from any personal income tax refund for a contribution to the behavioral health, education, training, and coordination fund. The checkoff is available for returns filed for tax years ending on or after December 31, 2024. In addition, a sunset date of December 31, 2023 has been set for the refund deduction for contributions to the substance use and mental health leadership council.
Rhode Island Personal Income Tax—Rhode Island establishes checkoff for the behavioral health education, training, and coordination fund.
L. 2024, S2557 (c. 395), effective 06/26/2024, provides a voluntary deduction from any personal income tax refund for a contribution to the behavioral health, education, training, and coordination fund. The checkoff is available for returns filed for tax years ending on or after December 31, 2024. In addition, a sunset date of December 31, 2023 has been set for the refund deduction for contributions to the substance use and mental health leadership council.
Rhode Island Property Tax—Rhode Island authorizes the Town of Smithfield to provide an exemption for property classified as industrial.
L. 2024, S2350 (c. 447), effective 06/29/2024, authorizes the Town of Smithfield to exempt from taxation real and tangible personal property used for industrial purposes. In addition, the exemption period that the Town of Smithfield is authorized to provide has been extended from 10 to 20 years.
Rhode Island Property Tax—Rhode Island authorizes the Town of Smithfield to exempt property classified as industrial.
L. 2024, H7660 (c. 425), effective 06/28/2024, authorizes the Town of Smithfield to exempt from taxation real and tangible personal property used for industrial purposes. In addition, the exemption period that the Town of Smithfield is authorized to provide has been extended from 10 to 20 years.
Week Of 09.30.2024
Rhode Island Financial Institutions Taxes—Rhode Island allows banking institutions to elect to allocate and apportion their net income.
L. 2024, H7927 (c. 158), effective for tax years beginning or after 01/01/2025, allows banking institution taxpayers whose business activity is taxable both within and outside of Rhode Island to elect to allocate and apportion their net income. An election is made by filing the form prescribed by the tax administrator with the taxpayer's duly-filed return. The election takes effect in the tax year for which the taxpayer makes the election and remains in effect for all subsequent tax years. However, after a minimum of five subsequent tax years after the tax year for which the election is made, in the event of a material change of facts or law, a taxpayer may apply to the tax administrator to revoke the election. In addition, Rhode Island has authorized a combined reporting study so that each banking institution that is part of a unitary business must file a report for the combined group containing the combined net income of the combined group as part of its tax return for the taxable year beginning after December 31, 2023 but before January 1, 2026.
Rhode Island Financial Institutions Taxes—Rhode Island authorizes banking institutions to elect to allocate and apportion their net income.
L. 2024, S3152 (c. 159), effective for tax years beginning or after 01/01/2025, allows banking institution taxpayers whose business activity is taxable both within and outside of Rhode Island to elect to allocate and apportion their net income. An election is made by filing the form prescribed by the tax administrator with the taxpayer's duly-filed return. The election takes effect in the tax year for which the taxpayer makes the election and remains in effect for all subsequent tax years. However, after a minimum of five subsequent tax years after the tax year for which the election is made, in the event of a material change of facts or law, a taxpayer may apply to the tax administrator to revoke the election. In addition, Rhode Island has authorized a combined reporting study so that each banking institution that is part of a unitary business must file a report for the combined group containing the combined net income of the combined group as part of its tax return for the taxable year beginning after December 31, 2023 but before January 1, 2026.
Rhode Island Property Tax—Rhode Island authorizes tax notice by mail to be waived.
L. 2024, H7110 (c. 221), effective 06/24/2024, allows municipalities that issue tax bills via mail to develop programs to provide adequate notice through other digital or electronic means.
Rhode Island Property Tax—Rhode Island authorizes property tax notice by mail to be waived.
L. 2024, S2639 (c. 222), effective 06/24/2024, allows municipalities that issue tax bills via mail to develop programs to provide adequate notice through other digital or electronic means.
Rhode Island Property Tax—Rhode Island authorizes City of Woonsocket to reassess taxes for new construction.
L. 2024, H8176 (c. 421), effective 06/28/2024, authorizes the City of Woonsocket to reassess taxes on a prorated basis for new construction from the earlier of: the date of issuance of the certificate of use and occupancy; or the date on which the new construction is first used for the purpose for which it was constructed.
Rhode Island Property Tax—Rhode Island authorizes City of Woonsocket to reassess property taxes for new construction.
L. 2024, S2582 (c. 443), effective 06/29/2024, authorizes the City of Woonsocket to reassess taxes on a prorated basis for new construction from the earlier of: the date of issuance of the certificate of use and occupancy; or the date on which the new construction is first used for the purpose for which it was constructed.
Week Of 10.07.2024
Rhode Island Personal Income Tax—Rhode Island provides checkoff for the behavioral health education, training, and coordination fund.
L. 2024, H8160 (c. 394), effective 06/26/2024, provides a voluntary deduction from any personal income tax refund for a contribution to the behavioral health, education, training, and coordination fund. The checkoff is available for returns filed for tax years ending on or after December 31, 2024. In addition, a sunset date of December 31, 2023 has been set for the refund deduction for contributions to the substance use and mental health leadership council.
Rhode Island Personal Income Tax—Rhode Island establishes checkoff for the behavioral health education, training, and coordination fund.
L. 2024, S2557 (c. 395), effective 06/26/2024, provides a voluntary deduction from any personal income tax refund for a contribution to the behavioral health, education, training, and coordination fund. The checkoff is available for returns filed for tax years ending on or after December 31, 2024. In addition, a sunset date of December 31, 2023 has been set for the refund deduction for contributions to the substance use and mental health leadership council.
Rhode Island Property Tax—Rhode Island authorizes the Town of Smithfield to provide an exemption for property classified as industrial.
L. 2024, S2350 (c. 447), effective 06/29/2024, authorizes the Town of Smithfield to exempt from taxation real and tangible personal property used for industrial purposes. In addition, the exemption period that the Town of Smithfield is authorized to provide has been extended from 10 to 20 years.
Rhode Island Property Tax—Rhode Island authorizes the Town of Smithfield to exempt property classified as industrial.
L. 2024, H7660 (c. 425), effective 06/28/2024, authorizes the Town of Smithfield to exempt from taxation real and tangible personal property used for industrial purposes. In addition, the exemption period that the Town of Smithfield is authorized to provide has been extended from 10 to 20 years.
Week Of 09.30.2024
Rhode Island Financial Institutions Taxes—Rhode Island allows banking institutions to elect to allocate and apportion their net income.
L. 2024, H7927 (c. 158), effective for tax years beginning or after 01/01/2025, allows banking institution taxpayers whose business activity is taxable both within and outside of Rhode Island to elect to allocate and apportion their net income. An election is made by filing the form prescribed by the tax administrator with the taxpayer's duly-filed return. The election takes effect in the tax year for which the taxpayer makes the election and remains in effect for all subsequent tax years. However, after a minimum of five subsequent tax years after the tax year for which the election is made, in the event of a material change of facts or law, a taxpayer may apply to the tax administrator to revoke the election. In addition, Rhode Island has authorized a combined reporting study so that each banking institution that is part of a unitary business must file a report for the combined group containing the combined net income of the combined group as part of its tax return for the taxable year beginning after December 31, 2023 but before January 1, 2026.
Rhode Island Financial Institutions Taxes—Rhode Island authorizes banking institutions to elect to allocate and apportion their net income.
L. 2024, S3152 (c. 159), effective for tax years beginning or after 01/01/2025, allows banking institution taxpayers whose business activity is taxable both within and outside of Rhode Island to elect to allocate and apportion their net income. An election is made by filing the form prescribed by the tax administrator with the taxpayer's duly-filed return. The election takes effect in the tax year for which the taxpayer makes the election and remains in effect for all subsequent tax years. However, after a minimum of five subsequent tax years after the tax year for which the election is made, in the event of a material change of facts or law, a taxpayer may apply to the tax administrator to revoke the election. In addition, Rhode Island has authorized a combined reporting study so that each banking institution that is part of a unitary business must file a report for the combined group containing the combined net income of the combined group as part of its tax return for the taxable year beginning after December 31, 2023 but before January 1, 2026.
Rhode Island Property Tax—Rhode Island authorizes tax notice by mail to be waived.
L. 2024, H7110 (c. 221), effective 06/24/2024, allows municipalities that issue tax bills via mail to develop programs to provide adequate notice through other digital or electronic means.
Rhode Island Property Tax—Rhode Island authorizes property tax notice by mail to be waived.
L. 2024, S2639 (c. 222), effective 06/24/2024, allows municipalities that issue tax bills via mail to develop programs to provide adequate notice through other digital or electronic means.
Rhode Island Property Tax—Rhode Island authorizes City of Woonsocket to reassess taxes for new construction.
L. 2024, H8176 (c. 421), effective 06/28/2024, authorizes the City of Woonsocket to reassess taxes on a prorated basis for new construction from the earlier of: the date of issuance of the certificate of use and occupancy; or the date on which the new construction is first used for the purpose for which it was constructed.
Rhode Island Property Tax—Rhode Island authorizes City of Woonsocket to reassess property taxes for new construction.
L. 2024, S2582 (c. 443), effective 06/29/2024, authorizes the City of Woonsocket to reassess taxes on a prorated basis for new construction from the earlier of: the date of issuance of the certificate of use and occupancy; or the date on which the new construction is first used for the purpose for which it was constructed.