The proposed bill introduces a new chapter, CHAPTER 72, titled "WEALTH TAX," to Title 44 of the General Laws, establishing a one percent (1%) wealth tax on the taxable worldwide wealth of Rhode Island residents, effective January 1, 2026, for taxes due in 2027. It defines "taxable worldwide wealth" as a person's worldwide wealth, excluding the fair market value of any intangible property exempt from the tax. The legislation outlines filing requirements, stating that each resident owing tax must file a return by April 15th each year, reporting their taxable worldwide wealth for the preceding calendar year. It mandates electronic filing and payment, with provisions for joint filing by spouses or state-registered domestic partners.

The bill provides exemptions for certain financial intangible assets, specifically up to twenty-five million dollars ($25,000,000) of a taxpayer's financial intangible assets, nonfinancial intangible assets, and the worldwide wealth of artificial persons. It also allows for a credit against the tax for similar wealth taxes paid to other states, with specific conditions outlined.

Additionally, the bill addresses tax relief for individuals required to jointly file a return, allowing them to petition for relief from joint and several liability under certain criteria. It prohibits relief for taxes on wealth derived from "disqualified assets," defined as assets transferred between spouses or partners to avoid tax, with a presumption against such transfers made within twelve months prior to the tax year.

The bill mandates audits of a growing percentage of taxpayers, starting at ten percent (10%) in 2026, increasing to fifteen percent (15%) in 2027, and twenty percent (20%) in 2028 and thereafter. It includes penalties for late filing and substantial wealth tax valuation understatements. A severability clause ensures that if any provision of the chapter is held invalid, the remainder of the chapter remains effective.