The bill amends Section 44-22-1.1 of the General Laws in Chapter 44-22, which pertains to "Estate and Transfer Taxes Liability and Computation." It 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 four million dollars ($4,000,000). The tax amount is equivalent to the maximum credit for state death taxes allowed by 26 U.S.C. § 2011 as it was in effect on January 1, 2001. Additionally, a Rhode Island credit is allowed against any tax determined, and this credit amount will be adjusted annually starting January 1, 2026, based on the Consumer Price Index for all Urban Consumers (CPI-U).

The bill also specifies that the terms "gross taxable estate," "federal gross estate," or "net taxable estate" used in this chapter have the same meaning as in the laws of the United States, unless a different meaning is clearly required. It clarifies that all values are as finally determined for federal estate tax purposes and defines the tax situs for property within the state of Rhode Island. The act would take effect upon passage, and its legislative purpose is to increase the net taxable estate exemption to four million dollars ($4,000,000) for deaths occurring on or after January 1, 2025.

Statutes affected:
7487: 44-22-1.1