The bill amends Section 44-22-1.1 of the General Laws concerning estate and transfer taxes. It increases the net taxable estate exemption for decedents whose death occurs on or after January 1, 2027, to fifteen million dollars ($15,000,000). A tax is imposed on the transfer of the net estate of every resident or nonresident decedent only if the net taxable estate exceeds this threshold. The tax will be calculated based on the maximum credit for state death taxes allowed by 26 U.S.C. 2011, as it was in effect as of January 1, 2001, with a Rhode Island credit allowed against any tax determined.

Additionally, beginning on January 1, 2028, the Rhode Island credit amount will be adjusted annually by the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U), as published by the United States Department of Labor's Bureau of Labor Statistics, with adjustments compounded annually and rounded up to the nearest five dollar ($5.00) increment. The act will take effect upon passage.

Statutes affected:
7312: 44-22-1.1