§ 44-30-2.10 - Alternative flat tax rate.
SECTION 44-30-2.10
§ 44-30-2.10 Alternative flat tax rate.– (a) For tax years beginning on or after January 1, 2006, a taxpayer may electto compute his or her Rhode Island personal income tax liability as provided inthis section. If no election is made, the taxpayer's personal income taxliability shall be computed as otherwise provided in this chapter.
(b) For purposes of this section, "alternative Rhode Islandtaxable income" shall mean federal adjusted gross income as determined forfederal income tax purposes as modified by §§ 44-30-12 and 44-30-32for residents and nonresidents, respectively. No other state or federaldeductions or adjustments to income shall be available to the taxpayer.
(c) For purposes of this section, the "alternative tax rate"shall be eight percent (8.0%) for the tax year 2006; seven and one-half percent(7.5%) for tax year 2007; seven percent (7%) for tax year 2008; six andone-half percent (6.5%) for tax year 2009; six percent (6%) for tax year 2010;and five and one-half percent (5.5%) for tax years 2011 and thereafter;
(d) The alternative personal income tax shall be determinedby multiplying the taxpayer's alternative Rhode Island taxable income by thealternative tax rate, less the following credits:
(1) Credit for income taxes paid to other states as providedfor in § 44-30-18;
(2) Credit for Rhode Island personal income tax withheld asprovided in § 44-30-74;
(3) Credit for Rhode Island payments of estimated tax asprovided in § 44-30-56(e) and RI Reg. Sec. PIT 90-17;
(4) Credit for Rhode Island overpayment of taxes as providedin § 44-30-86(a); and
(5) Credit for Rhode Island amount remitted by a limitedliability company on behalf of a nonresident member as provided in §7-16-73(4).
No other state or federal tax credits shall be available tothe taxpayer in computing the alternative personal income tax liability.
(e) The provisions of this section may apply regardless ofthe taxpayer's filing status.