§ 44-30-18 - Credit for income taxes of other states.
SECTION 44-30-18
§ 44-30-18 Credit for income taxes ofother states. – (a) General. A resident shall be allowed a credit, against the RhodeIsland personal income tax otherwise due for the taxable year, for theaggregate of net income taxes imposed on him or her for the taxable year byother states (including the District of Columbia) of the United States if thetaxes are imposed irrespective of the residence or domicile of the taxpayer.
(b) Limitation of credit. The credit shall not exceedthe proportion of the taxpayer's Rhode Island personal income tax that thetaxpayer's Rhode Island income derived from the other taxing states bears tohis or her entire Rhode Island income for the same taxable year. The source ofincome shall be determined in accordance with the rules prescribed in §44-30-32.
(c) Readjustment of another state's tax. If thetaxpayer is allowed credit under this section for more or less of anotherstate's tax than the taxpayer is finally required to pay, the taxpayer shallsend notice of the difference to the tax administrator who shall re -determinethe tax for any years affected regardless of any otherwise applicable statuteof limitations.
(d) Double residence. If the taxpayer is regarded as aresident both of Rhode Island and of another state for purposes of both theirnet income tax laws, the portion of Rhode Island tax allocable on average tothe income taxed twice by reason solely of dual residence shall be reduced bythe "appropriate percentage" of the lower of the two (2) state taxes allocableon average to the income taxed twice, if the other state also allows a similarreduction of its tax. The "appropriate percentage" shall be the percentage,which the Rhode Island tax is of the combined taxes of the two (2) states,allocable on average to the income taxed twice.