S3250 amends Rhode Island’s personal income tax law to create and refine a state “shared responsibility payment” tied to health insurance coverage. The bill requires applicable individuals to maintain minimum essential coverage and, if they do not, to report coverage status on their state income tax return. If an individual lacks coverage and does not qualify for an exception, a penalty is assessed on the return and collected through the tax system.
The measure also directs how the penalty is calculated, generally linking it to the federal Affordable Care Act penalty framework as it existed on December 15, 2017, while substituting Rhode Island-specific premium data for certain calculations. It includes exemptions and special rules for hardship, religious conscience, low-income filers below the state filing threshold, bona fide out-of-state residents, and certain Medicaid enrollees. Collected amounts are deposited into the health insurance market integrity fund.
Impact
The bill would amend § 44-30-101 of the Rhode Island General Laws and expand the Division of Taxation’s authority to assess, collect, and enforce a state health coverage penalty through the personal income tax system. It also authorizes refund offsets, deficiency procedures, interest on unpaid amounts, and coordination with HealthSource RI and other state health agencies. In addition, it creates a limited data-sharing framework allowing the tax administrator to disclose contact information for uninsured filers to the Rhode Island health benefits exchange for outreach and enrollment purposes, subject to opt-out, privacy, and sunset provisions.
Sentiment
Based on the bill text and the stated purpose, the measure appears to be framed as an administrative and coverage-enrollment tool rather than a punitive tax increase. The available context does not include committee testimony or recorded votes, so there is no direct evidence of support or opposition from legislators in the materials provided. The bill’s design suggests an emphasis on encouraging insurance enrollment and preserving the state health insurance market.
Contention
The main points of potential contention are privacy, data sharing, and the use of the tax system to enforce health coverage requirements. The bill allows the Division of Taxation to share uninsured filers’ contact information with HealthSource RI unless the taxpayer opts out, which may raise concerns about taxpayer privacy and government outreach. Another likely area of debate is the penalty itself and whether Rhode Island should continue a state-level individual coverage mandate tied to the ACA framework, especially given the bill’s reliance on older federal law and its exceptions for certain groups.
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.
Exempts certain urban and small farmers from sales taxes, real, tangible and personal property taxes and income taxes. This act would also define urban and small farmers and urban farmland.