The bill amends Sections 44-30-2.6 and 44-30-2.7 of the Rhode Island General Laws to redefine "Rhode Island taxable income," particularly excluding the increase in the basic standard deduction amount for married couples filing joint returns as provided in federal tax acts. It sets Rhode Island personal income tax rates as a percentage of federal income tax rates prior to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), with inflation adjustments starting from the tax year 2002. The bill also revises the calculation of Rhode Island alternative minimum tax and adjusts the exemption amount for inflation. It specifies tax rates for different filing statuses, introduces a provision for adjusting rates for inflation, and replaces the previous maximum capital gains rates with a new tax on net capital gains effective January 1, 2025. The bill details standard deduction amounts, including additional deductions for individuals aged 65 or older or blind, and outlines rules for dependents, nonresident aliens, and estates or trusts. It includes provisions for adjusting dollar amounts for inflation, phase-out of itemized deductions and exemption amounts for high-income individuals, and defines the cost-of-living adjustment using the consumer price index.

Furthermore, the bill specifies tax credits, including a Rhode Island earned-income credit set at 16% of the federal credit for tax years beginning on or after January 1, 2024. It limits the credits against Rhode Island tax to those enacted before January 1, 1996, and provides for a credit for adoption of children under the care of the Rhode Island department of children, youth, and families. The bill also introduces a "Non-Owner Occupied Property Tax" on residential properties valued at one million dollars or more to ensure owners contribute to the cost of state services. It defines terms, sets tax rates based on property value, and outlines the payment schedule and additional procedures for tax returns and delinquencies. The bill mandates that tax installments be paid by specific dates and grants the tax administrator authority over tax return forms and extensions. It includes procedures for delinquent payments, taxpayer rights for refunds and appeals, and the requirement for taxpayers to maintain records. The bill empowers the tax administrator to create rules and regulations, includes a severability clause, and sets the effective dates for the act's sections, with most taking effect on January 1, 2025, and one section on July 1, 2024.