The bill amends Section 44-22-1.1 of the General Laws in Chapter 44-22, which is titled "Estate and Transfer Taxes Liability and Computation." The amendment introduces a new subsection (5) under paragraph (a), which 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. Furthermore, starting from January 1, 2025, and each subsequent January 1, the estate tax exemption will be increased by ten percent (10%) annually until it matches the federal estate tax exemption amount.

The bill also clarifies that the tax determined by this section will be reduced proportionally if the decedent's estate includes property not located within the state. The terms "gross taxable estate," "federal gross estate," or "net taxable estate" are defined to have the same meanings as in the United States laws, specifically referencing the Internal Revenue Code of 1954, unless the context requires a different interpretation. The act will take effect upon passage, and its purpose is to gradually align the state estate tax exemption with the federal exemption through an annual ten percent increase.

Statutes affected:
7680: 44-22-1.1