The proposed bill introduces Chapter 72 to Title 44 of the General Laws, establishing a new tax on gains from the sale or exchange of real property in Rhode Island. This tax will be applied to gains realized from such transactions, with specific exclusions for properties sold by nonprofit organizations under Section 501(c)(3) of the Internal Revenue Code, properties purchased by the State from these organizations, properties conveyed due to court judgments related to marriage, farmland, open-space properties sold to qualifying organizations, and properties sold for affordable housing purposes if held for a minimum of six years. The bill outlines a tiered tax rate based on the duration the property was held, with rates as high as 80% for properties held for less than four months, and allows for reductions based on federal capital gains taxes owed.

Additionally, the bill details the procedures for tax withholding and remittance by buyers or transferees at the time of payment, requiring sellers to file a return within 30 days of the sale. It includes provisions for installment sales, where tax is due within 30 days of each installment payment, and establishes penalties for willful tax evasion. The bill also allows for the tax administrator to extend filing deadlines for good cause and provides mechanisms for sellers to prepay the tax or obtain a ruling that no tax is due. Overall, this legislation aims to create a structured tax framework for short-term real estate transactions while encouraging certain property sales through specified exemptions.