RELATING TO TAXATION -- RHODE ISLAND TAX AMNESTY ACT OF 2017
Impact
The implementation of Bill S2370 is expected to positively affect state revenue collection by incentivizing taxpayers to settle their overdue accounts. The waiver of penalties and interest will significantly lower the financial burden on those who may be struggling with outstanding taxes, thus enabling them to reinstate their drivers' licenses, which may have been suspended due to nonpayment. This facet of the bill demonstrates a more rehabilitative approach towards tax enforcement, focusing on assisting individuals in compliance rather than solely penalizing non-compliance.
Summary
Bill S2370, officially titled the Rhode Island Tax Amnesty Act of 2017, aims to assist taxpayers who have delinquent tax obligations by offering them a temporary opportunity to pay off their outstanding taxes without incurring additional penalties or interest. Specifically, the bill grants the tax administrator the authority to waive both interest and penalties for taxes paid in full during a designated one-week amnesty period. This provision serves to encourage compliance among delinquent taxpayers, making it easier for them to clear their obligations.
Contention
During discussions surrounding Bill S2370, there were contrasting views among legislators and stakeholders regarding the implications of a tax amnesty program. Proponents highlighted the potential for increased taxpayer compliance and the restoration of drivers' licenses as major benefits, asserting that such measures would lead to improved public safety and community welfare. Conversely, critics expressed concerns about the fairness of offering amnesty, fearing it might undermine the perceived responsibility of taxpayers to meet their obligations and could set a precedent for future amnesty programs.
Authorizes the tax administrator to waive interest and penalties on delinquent taxes paid in full during a one week amnesty period. Also reinstates a suspended driver’s license upon payment in full.
Authorizes the tax administrator to waive interest and penalties on delinquent taxes paid in full during a one week amnesty period. Also reinstates a suspended driver’s license upon payment in full.
Exempts from taxation the non-commercial real and tangible personal property of Southside Community Land Trust, a Rhode Island domestic nonprofit corporation, located in Providence, Rhode Island.
Exempts from taxation the real and tangible personal property of Codac, Inc., a Rhode Island nonprofit domestic corporation, located at 45 Royal Little Drive in Providence, Rhode Island.
Exempts from taxation the real and tangible personal property of Codac, Inc., a Rhode Island nonprofit domestic corporation, located at 45 Royal Little Drive in Providence, Rhode Island.
Increases the Rhode Island earned-income credit to twenty percent (20%) on January 1, 2026. Such credit would not exceed the amount of state income tax.