The bill introduces a new section, 44-30-2.12, to the "Personal Income Tax" chapter of the General Laws, which establishes a surtax of three percent (3%) on Rhode Island taxable income over one million dollars ($1,000,000). This surtax applies to various categories of taxpayers, including married individuals filing jointly, qualifying widow(er)s, heads of households, unmarried individuals, married individuals filing separately, and bankruptcy estates. The surtax is in addition to the existing personal income tax and is calculated on taxable income after accounting for modifications, the standard deduction, and exemptions. The revenue generated from this surtax is designated for specific public services and infrastructure improvements.

The bill mandates that the revenue from the surtax be deposited into a restricted receipt account and used exclusively for child care and early learning programs, public education, public colleges and universities, road and bridge maintenance, and public transportation. Additionally, the bill requires the division of taxation to report annually to the general assembly on the amount of surtax revenue collected and its distribution, with ten percent (10%) of the surtax collections set aside in an indirect costs recovery account. The act is set to take effect on January 1, 2025, and will not be applied retroactively.