§ 44-30-2 - Rate of tax.
SECTION 44-30-2
§ 44-30-2 Rate of tax. – (1) A Rhode Island personal income tax is imposed upon the Rhode Island incomeof residents and nonresidents, including estates and trusts, for the periodJanuary 1, 1971 through June 30, 1971 equal to twenty percent (20%) of one-half( 1/2) of the taxpayer's federal income tax liability for the taxable yearcommencing January 1, 1971; for the period July 1, 1971 through December 31,1971 equal to fifteen percent (15%) of one-half ( 1/2) of the taxpayer'sfederal income tax liability for the taxable year commencing January 1, 1971;and for each taxable year on and after January 1, 1972, and ending on or beforeDecember 31, 1974 equal to fifteen percent (15%) of the taxpayer's federalincome tax liability; for each taxable year on and after January 1, 1975 andending on or before December 31, 1977 equal to seventeen percent (17%) of thetaxpayer's federal income tax liability; for each taxable year ending afterDecember 31, 1977 equal to nineteen percent (19%) of the taxpayer's federalincome tax liability; for each taxable year ending after December 31, 1980equal to nineteen and twenty-four one-hundredths percent (19.24%) of thetaxpayer's federal income tax liability; for each taxable year ending afterDecember 31, 1981 equal to twenty-one and nine-tenths percent (21.9%) of thetaxpayer's federal income tax liability; for the period January 1, 1983 throughJune 30, 1983 equal to twenty-seven and five-tenths percent (27.5%) of thetaxpayer's federal income tax liability; for the period July 1, 1983 andthrough June 30, 1984 equal to twenty-six percent (26%) of the taxpayer'sfederal income tax liability; for the period July 1, 1984 and through December31, 1984 equal to twenty-four and nine-tenths percent (24.9%) of the taxpayer'sfederal income tax liability; in accordance with subsection (2) of this sectionfor the period January 1, 1985 through June 30, 1985 equal to twenty-three andsixty-five one-hundredths percent (23.65%) of the taxpayer's federal income taxliability; for the period July 1, 1985 through December 31, 1985, equal totwenty-two and sixty-five one-hundredths percent (22.65%) of the taxpayer'sfederal income tax liability; in accordance with subsection (3) of this sectionfor January 1, 1986 and thereafter shall be equal to twenty-two and twenty-oneone-hundredths percent (22.21%) of the taxpayer's federal income tax liability;in accordance with the Tax Reform Act of 1986, codified primarily at 26 U.S.C.§ 1 et seq., for the period January 1, 1987 through June 30, 1987 shall beequal to twenty-three and ninety-six one-hundredths percent (23.96%) of thetaxpayer's federal income tax liability; for the period July 1, 1987 throughDecember 31, 1990 shall be equal to twenty-two and ninety-six one-hundredthspercent (22.96%) of the taxpayer's federal income tax liability; for the periodJanuary 1, 1991 through June 30, 1992 and for the period January 1, 1994 andthereafter shall be equal to twenty-seven and five tenths percent (27.5%) ofthe taxpayer's federal income tax liability; for the period July 1, 1992through December 31, 1992 if the taxpayer's federal income tax liability isfifteen thousand dollars ($15,000) or less shall be equal to twenty-seven andfive tenths percent (27.5%) of the taxpayer's federal income tax liability butif the taxpayer's federal income tax liability is greater than fifteen thousanddollars ($15,000) shall be the sum of twenty-seven and five-tenths percent(27.5%) of the taxpayer's federal income tax liability up to and includingfifteen thousand dollars ($15,000) and thirty-two percent (32%) of thetaxpayer's federal income tax liability in excess of fifteen thousand dollars($15,000).
(ii) The effective rate for the year 1983 shall be equal totwenty-six and seventy-five hundredths percent (26.75%) of the taxpayer'sfederal income tax liability. The effective rate for the year 1984 shall beequal to twenty-five and five-tenths percent (25.5%) of the taxpayer's federalincome tax liability.
(iii) The effective rate for the year 1985 shall be equal totwenty-three and fifteen-hundredths percent (23.15%) of the taxpayer's federalincome tax liability. The effective rate for the year 1987 shall betwenty-three and forty-six one-hundredths percent (23.46%) of the taxpayer'sfederal income tax liability.
(iv) For the year 1992, if the taxpayer's federal income taxliability for the year is greater than fifteen thousand dollars ($15,000), theeffective rate on such the federal income tax liability in excess of fifteenthousand dollars ($15,000) shall be twenty-nine and seventy-five one-hundredthspercent (29.75%).
(v) The personal income tax rate for the year 1993 shall bein accordance with the following schedules:
SCHEDULE X-RI: Single Individuals
FEDERAL INCOME TAX RI INCOME TAX
LIABILITY
SEE THE BOOK FOR THE PROPER TABLE.
The above rate table may not be used by a taxpayer who filesa federal Schedule D and has taxable income in excess of $115,000.00. Thoseindividuals must file a Rhode Island Schedule D.
SCHEDULE Y-1-RI: Married Filing Jointly or QualifyingWidow(er)
FEDERAL INCOME TAX RI INCOME TAX
LIABILITY
SEE THE BOOK FOR THE PROPER TABLE.
The above rate table may not be used by a taxpayer who filesa federal Schedule D and has taxable income in excess of $140,000.00. Thoseindividuals must file a Rhode Island Schedule D.
SCHEDULE Y-2-RI: Married Filing Separately
FEDERAL INCOME TAX RI INCOME TAX
LIABILITY
SEE THE BOOK FOR THE PROPER TABLE.
The above rate table may not be used by a taxpayer who filesa federal Schedule D and has taxable income in excess of $70,000.00. Thoseindividuals must file a Rhode Island Schedule D.
SCHEDULE Z-RI: Head of Household
FEDERAL INCOME TAX RI INCOME TAX
LIABILITY
SEE THE BOOK FOR THE PROPER TABLE.
The above rate table may not be used by a taxpayer who filesa federal Schedule D and has taxable income in excess of $127,500.00. Thoseindividuals must file a Rhode Island Schedule D.
RI INCOME TAX RATE SCHEDULES FOR USE BY ESTATES ANDTRUSTS
FEDERAL INCOME TAX RI INCOME TAX
LIABILITY
SEE THE BOOK FOR THE PROPER TABLE.
The above rate table may not be used by a taxpayer who filesa federal Schedule D and has taxable income in excess of $5,500.00. Thoseindividuals must file a Rhode Island Schedule D.
(vi) The purpose of the 1993 rate schedules and/or the RhodeIsland Schedule D shall be such that a taxpayer's 1993 Rhode Island personalincome tax liability shall remain the same as it would have been prior to theenactment of the Federal Omnibus Budget Reconciliation Act of 1993, (OBRA),P.L. 103-66, 107 Stat. 312.
(vii) For the year 1994 through December 31, 1997, the rateshall be twenty-seven and five-tenths percent (27.5%) of the taxpayers entirefederal income tax liability.
(viii) For the period January 1, 1998, through December 31,1998, the rate shall be equal to twenty-seven percent (27%) of the taxpayer'sfederal income tax liability.
(ix) For the period January 1, 1999, through December 31,1999, the rate shall be equal to twenty-six and five-tenths (26.5%) of thetaxpayer's federal income tax liability.
(x) For the period January 1, 2000, through December 31,2000, the rate shall be equal to twenty-six percent (26%) of the taxpayer'sfederal income tax liability.
(xi) For the period January 1, 2001, through December 31,2001, the rate shall be equal to twenty-five and five-tenths percent (25.5%) ofthe taxpayer's federal income tax liability.
(xii) For the period January 1, 2002, and thereafter the rateshall be twenty-five percent (25%) of the taxpayer's federal income taxliability.
(2) In the event that the indexing of the federal personalincome tax scheduled to take effect on January 1, 1985, as enacted by theEconomic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., does take effector is replaced by similar legislation, as the result of an action of the UnitedStates Congress, then the Rhode Island personal income tax rate as set forth insubdivision (a)(1) of this section for the period January 1, 1985, and throughJune 30, 1985, shall be changed and be equal to twenty-three and sixty-fiveone-hundredths percent (23.65%) of the taxpayer's federal income tax liability.
(3) In the event that the indexing of the federal personalincome tax scheduled to take effect on January 1, 1986, as enacted by theEconomic Recovery Tax Act of 1981, 26 U.S.C. § 1 et seq., does take effector is replaced by similar legislation as the result of an action of the UnitedStates Congress, then the Rhode Island personal income tax rate as set forth insubdivision (a)(1) of this section for the period January 1, 1986, andthereafter shall be changed and be equal to twenty-two and twenty-oneone-hundredths percent (22.21%) of the taxpayer's federal income tax liability.
(b) Federal income tax liability. Federal income taxliability shall be the amount of federal income tax without deduction for anynew federal credit(s) enacted after January 1, 1996, (excluding self-employmenttax, social security tax or any supplemental Medicare premium) or supplementalpremium surcharge imposed by the Medicare Catastrophic Coverage Act of 1988(P.L. 100-360), codified primarily at 42 U.S.C. § 1395 et seq., which thetaxpayer would have been liable if the taxpayer had paid federal income taxbased on federal taxable income as adjusted by the modifications provided inparts II and III of this chapter. The federal taxable income shall not includemodifications which would decrease federal taxable income resulting from theapplications of § 15 of chapter 489 of the public laws of 1923, as amendedby § 8 of chapter 151 of the public laws of 1963; §§ 28-17-3,36-10-32, 45-21-45, or any other sections of Rhode Island law which wouldprovide or would be construed to provide that any pension, annuity, retirementallowance, benefit, or right shall be exempt from any state tax.
(c) Cross references. For credit in respect of:
(1) Taxes withheld on wages, see § 44-30-73;
(2) Taxes imposed on a resident by other states, see §44-30-18;
(3) Taxes overpaid for a prior taxable year, see §44-30-86.
(1) There shall be allowed as a credit against the RhodeIsland personal income tax otherwise due for a taxable year, commencing for thetax year 1988, a contribution of five dollars ($5.00), or ten dollars ($10.00)if married and filing a joint return, to the account for the public financingof the electoral system. The first two dollars ($2.00), or four dollars ($4.00)if married and filing a joint return, shall go to a political party as definedin § 17-12.1-12 to be designated by the taxpayer or to a nonpartisanaccount if so indicated up to a total of two hundred thousand dollars($200,000) collectively for all parties and the nonpartisan account. Theremainder shall be deposited as general revenue.
(2) The credit for the public financing of the electoralsystem shall appear on the face of the state personal income tax return. Thetax administrator shall annually forward by August 1, all contributions to saidaccount to the state general treasurer and the treasurer shall annually remitby September 1, the designated partisan contributions to the chairperson of theappropriate political party and the contributions made to the nonpartisangeneral account shall be allocated by the state general treasurer to eachpolitical party in proportion to the combined number of votes its candidatesfor governor received in the previous election, after five percent (5%) of theamount in the account is allocated to each party for each general officerelected in the previous statewide election. Each political party may expendmoneys received under this provision for all purposes and activities permittedby the laws of Rhode Island and the United States, except that no such moneysshall be utilized for expenditures to be directly made or incurred to supportor defeat a candidate in any election within the meaning of chapter 25 of title17, or in any election for any political party nomination, or for politicalparty office within the meaning of chapter 12 of title 17. The remaining fundsshall be allocated for the public financing of campaigns for governor as setforth in §§ 17-25-19 – 17-25-27.
(1) Notwithstanding the provisions of subsection (a) of thissection, for taxable years ending after December 31, 1980, in the event thatduring a period when the general assembly is not in session a change is made inthe provisions of the Internal Revenue Code of the United States and amendmentsthereto, or other provisions of the law of the United States relating tofederal income taxes, or the rules and regulations issued under these laws thatalters the taxpayer's federal income tax liability, the tax administrator isdirected to so change the Rhode Island personal income tax rate of thetaxpayer's federal income tax liability as to retain the tax product uponreceipt of which state appropriations were predicated.
(2) The rate so set by the tax administrator will beeffective until such time as the general assembly shall ratify this rate or seta different rate.