Legislative Updates
Under The Dome from the RI Chamber Coalition
This Week At the State House
Tuesday, May 20th
The Senate Finance Committee has a full schedule in Room 212 At the Rise (approximately 4:30). There are five bills of interest to the business community:
Shift of Utility Costs to Businesses and Higher Income Earners
S.185, An Act Relating to Public Utility and Carriers, creates a tiered rate system for electricity and natural gas customers whose household income level is below 150% of the federal poverty level and who are eligible for LIHEAP assistance or Medicaid. For these households, the plan envisions capping electric rates to ensure that they pay no more than 3% of their income on electricity or 6% of their income if the house utilizes electricity as a sole source of heat. The program will be funded by increasing rates on all other customers including commercial and industrial customers. Rhode Island businesses currently pay the second highest electricity rates in the country according to the Energy Information Agency’s most recent data. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0185.pdf
Municipal Waiver of Interest
S.330, An Act Relating to Taxation – Levy and Assessment of Local Taxes, allows municipalities to waive interest on overdue taxes on commercial properties. This is a simple bill that gives cities and towns the option to treat commercial property taxes in the same way they can treat residential property taxes today. S.330 is enabling legislation allowing municipalities to waive interest
on one quarter of overdue commercial property tax if:
- The property has been owned for the five years immediately preceding the tax payment that is overdue
- The taxpayer requests the waiver in writing
- The taxpayer made timely payments of taxes for the five years immediately preceding the tax payment
- The payment that is overdue was issued less than two years prior to the date of the request for the waiver
- The waiver of interest is $500 or less
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0330.pdf
RI New Qualified Jobs Incentive Act
S.613, An Act Relating to Taxation – Rhode Island New Qualified Jobs Incentive Act 2015 provides more time to file documentation to prove the business has met the employment requirements under the act. Under current law, a business has three years following the date of approval to submit the paperwork. S.613 allows for the submission electing a waiver of tax credits for the first year of eligibility for a tax credit. Secondly, the bill also allows businesses awarded tax credits between October 1, 2018 and December 31, 2023, to submit documentation until December 31, 2025, provided the business can show evidence that withholding payments were made. Lastly, a business that was approved for tax credits under the program by the board of directors of the commerce corporation and was unable to meet its employment commitments and did not receive any tax credits under the program, may submit a new application for tax credits to the commerce corporation. https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S0613.pdf
Rebuild RI Tax Credit
S.1002, An Act Relating to State Affairs and Government – Rebuild RI Tax Credit, expands the maximum project credit allowed under the Rebuild Rhode Island tax credit program to include sales and use tax exemptions for qualified development projects related to affordable and workforce housing. The current program aims to bridge the funding gap for real estate projects that are unable to secure sufficient financing through traditional means. The program provides redeemable tax credits to eligible projects. These tax credits can cover up to 20% of project costs, and in certain cases, up to 30%. Rebuild RI approved projects may also be exempt from sales tax on construction materials, furnishings, and equipment.
https://webserver.rilegislature.gov/BillText/BillText25/SenateText25/S1002.pdf
Testimony on all these bills can be submitted to SenateFinance@rilegislature.gov
Wednesday, May 21st
Worldwide Wealth Tax
The House Finance Committee is meeting at 4:00 p.m. in room 35. H.6290, An Act Relating to Taxation – Wealth Tax is on agenda. This new bill places a 1% tax on “world-wide” wealth of Rhode Island individual residents and businesses domiciled in the state. Beginning January 1, 2026, for taxes due in 2027, a wealth tax is imposed equal to one percent (1%) multiplied by a resident's/business’s taxable worldwide wealth. "Worldwide wealth" is defined as “the fair market value of all intangible assets, or portion thereof, owned or controlled by a resident.” The first $25 million of assets is exempt from taxation; however married individuals and domestic partners must file together and each claim one-half of the exemption unless they seek a special exemption from the state. Nonfinancial assets are also not subject to tax which includes: worldwide wealth of artificial persons associated with the individual resident, debts of the United States, trademarks, trade names, patents, financing agreements, private nongovernmental personal service contracts, nongovernmental athletic or sports franchises or agreement, nonfinancial intangible assets, stock of a federal reserve bank or national mortgage association, and property subject to ad valorem taxation (real property or personal property subject to tax already). The legislation includes a tax penalty of 50% of the underpayment if the taxpayer substantially underestimates the tax, and a 30% penalty in all other cases. This 1% worldwide wealth tax appears to be a tax in addition to any other tax owed. H.6290 does include a credit if the taxpayer is subject to a substantially similar tax from another state on the same assets.
https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6290.pdf
To submit testimony on H.6290, email it to HouseFinance@rilegislature.gov
Thursday, May 22nd
Junk Fee Bill to Be Amended as Requested by the Chamber
H.5247, An Act Relating to Commercial Law – Deceptive Trade Practices, is scheduled for a vote, but in a SubA form. The original bill attempted to address what is often referred to as “junk fees,” and the misleading of customers by stating one price for a good or service and then adding random fees after the order is complete. The legislation created a new section to the unfair deceptive practices act, declaring it is an unfair practice to offer goods or services to the public and fail to include a notification disclosing any fees including the “nature and purpose” of those fees. H.5247 SubA, is limited to the “Advertising, displaying, or offering a price for live-event tickets or short-term lodging in violation of federal law 16 C.F.R. Part 464.” This version of the bill resolves the concerns expressed by the Chamber. The SubA can be viewed at:
https://webserver.rilegislature.gov/BillText/BillText25/Proposed25/H5247A.pdf
The following new bills have been filed:
House Bill No. 6334 (Providence City Council) Kislak, Morales, Potter, Diaz, Slater, Ajello, Speakman, Hull, J. Lombardi, AN ACT RELATING TO TAXATION -- SALES AND USE TAXES--LIABILITY AND COMPUTATION (Authorizes municipalities to impose a ticket tax on ticket sales for venues large enough to hold at least eight hundred (800) patrons, seated, of two dollars ($2) per ticket. The tax shall be redistributed to the locality where the venue is located.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6334.pdf
House Bill No. 6344 Voas, Chippendale, AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS -- THE RHODE ISLAND LIMITED LIABILITY COMPANY ACT (Replaces the existing limited liability company act with a newer and updated model act.)
https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6344.pdf
House Bill No. 6346 Carson, AN ACT RELATING TO CRIMINAL OFFENSES -- IDENTITY THEFT PROTECTION ACT OF 2015 (Amends the Identity Theft Protection Act by eliminating current definitions and establishing new definitions. This act also raises the penalty provisions for violations.) https://webserver.rilegislature.gov/BillText/BillText25/HouseText25/H6346.pdf