Rhode Island 2026 Regular Session

Rhode Island House Bill H7240

Introduced
1/21/26  

Caption

RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES -- ENFORCEMENT AND, COLLECTION

Impact

By generating an estate tax discharge upon the filing and recording of a specified statement, H7240 aims to simplify the administrative process for handling estate taxes. For estates of decedents who passed away before January 1, 2025, a nominal fee will be charged for filing this statement, while those passing after this date will not incur any fees. This change is expected to alleviate financial burdens on families handling estate transitions and encourage compliance with tax laws by clarifying the conditions necessary for tax discharge.

Summary

House Bill 7240 aims to amend the current laws governing estate and transfer taxes in Rhode Island, specifically relating to the enforcement and collection of these taxes. The bill proposes that executors, administrators, and heir-at-law, or individuals in possession of real property, must file a statement with the tax administrator within nine months following the death of the decedent. This statement will disclose the full cash value of the estate and other relevant details necessary for calculating the estate tax. Importantly, the bill introduces a provision for an estate tax discharge based on the recorded statement indicating that the gross estate does not require any state or federal tax filing.

Contention

Despite the simplifications, there may be points of contention regarding the bill among legislators and stakeholders. Some may argue that eliminating the filing fee for estates of decedents post-2025 could result in a loss of revenue necessary for tax administration. Others may raise concerns about the potential for misuse of the estate tax discharge process if not properly regulated, thereby allowing high-value estates to circumvent taxation obligations erroneously. This aspect may prompt discussions about the balance between facilitating estate transitions and ensuring fair tax compliance.

Companion Bills

No companion bills found.

Previously Filed As

RI H5755

Generates an estate tax discharge upon the recording of a statement by the executor or other estate representative that the value of the decedent’s gross estate does not require a state or federal tax filing.

RI H5735

Provides technical and other corrections to various general laws relating to taxation.

RI S0614

Provides technical and other corrections to various general laws relating to taxation.

RI S1040

Creates new tax on gains from sale or exchange of real property held for short periods of time, 6 years or less, establishes a comprehensive framework to calculate and implement enforcement and provides imprisonment and/or fines for those who evade taxes.

RI S0455

Increases the net taxable estate exemption to $3,600,000 on January 1, 2026 and increases the exemption by $1,000,000 on January 1, 2027, and every year thereafter.

RI S0187

Increases the net taxable estate exemption to four million dollars ($4,000,000) for deaths that occur on or after January 1, 2026.

RI H5783

Increases the net taxable estate exemption to four million dollars ($4,000,000) for deaths that occur on or after January 1, 2026.

RI H5754

Increases the net taxable estate exemption to four million dollars ($4,000,000) for deaths that occur on or after January 1, 2026.

RI S0431

Exempts certain urban and small farmers from sales taxes, real, tangible and personal property taxes and income taxes. Also defines urban and small farmers and urban farmland.

RI H5465

Establishes a single-payer health care insurance system, consolidating public and private payments into a more efficient Medicare-for-all style program, funded by progressive taxes, to reduce health care costs.

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