The bill amends Section 44-22-1.1 of the General Laws regarding estate and transfer taxes, specifically addressing the tax on the net estate of decedents. It introduces new provisions that increase the net taxable estate exemption to five million dollars ($5,000,000) for decedents who die on or after January 1, 2027, seven million five hundred thousand dollars ($7,500,000) for those who die on or after January 1, 2029, and ten million dollars ($10,000,000) for decedents who pass away on or after January 1, 2031. Additionally, the bill stipulates that there will be no estate tax imposed for decedents whose death occurs on or after January 1, 2033.

The bill establishes that a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent only if the net taxable estate exceeds the specified exemption amounts. The tax is calculated as a sum equal to 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. The bill specifies that any scheduled increase in the unified credit provided in 26 U.S.C. 2010 in effect on January 1, 2003, or thereafter, shall not apply. Furthermore, beginning on January 1, 2028, and each January 1 thereafter, the Rhode Island credit amount shall be adjusted by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor Bureau of Labor Statistics, compounded annually and rounded up to the nearest five dollar ($5.00) increment.

The act is set to take effect upon passage.

Statutes affected:
8190: 44-22-1.1