The bill amends Section 44-22-1.1 of the General Laws in Chapter 44-22, which is entitled "Estate and Transfer Taxes — Liability and Computation." 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 the applicable estate tax exemption for that year. Additionally, starting from January 1, 2025, and each January 1 thereafter, the estate tax exemption will be increased by ten percent (10%) annually until it equals the federal estate tax exemption amount.

The bill also clarifies that the terms "gross taxable estate," "federal gross estate," or "net taxable estate" have the same meanings as in the United States laws, unless a different meaning is required by the provisions of the chapter. The values for the estate tax purposes are determined based on the federal estate tax determinations. The act specifies the conditions under which property has a tax situs within the state of Rhode Island. The bill is set to take effect upon passage, and its purpose is to gradually align the state estate tax exemption with the federal exemption through an annual increase of ten percent.

Statutes affected:
7680: 44-22-1.1