The bill amends Section 44-22-1.1 of the General Laws in Chapter 44-22, which is related to estate and transfer taxes, specifically the tax on the net estate of decedents. The amendment introduces a new subsection (5) that applies to decedents whose death occurs on or after January 1, 2025. For these decedents, an estate tax is imposed only if the net taxable estate exceeds three million six hundred thousand dollars ($3,600,000). Additionally, starting on January 1, 2026, and each January 1 thereafter, the exemption amount will be increased by one million dollars ($1,000,000).

The bill also clarifies that all values are to be determined as per federal estate tax purposes and defines the tax situs for property within the state of Rhode Island. The act would take effect upon passage. The legislative council's explanation notes that the act aims to increase the net taxable estate exemption to $3,600,000 on January 1, 2025, and then increase the exemption by $1,000,000 each year thereafter.

Statutes affected:
2065: 44-22-1.1