Bill Sponsors
Senator Louis P. DiPalma
Committee
Senate Finance
Summary
Select
This bill updates the Rhode Island personal income tax law regarding informational tax returns, such as 1099 forms. Previously, Rhode Island required these forms to be filed for payments or credits of $100 or more made to a state taxpayer. The bill removes the $100 threshold and instead aligns the state's reporting requirement with the federal IRS thresholds.
Sponsor
Analysis
Pros for Progressives
- Reduces bureaucratic burdens on small businesses and independent contractors by aligning state tax reporting thresholds with federal standards, allowing them to focus resources on community needs rather than redundant paperwork.
- Prevents lower-income gig workers and freelancers from facing confusing, mismatched tax reporting requirements between state and federal governments, simplifying their tax filing process.
- Streamlines the state's tax administration system, potentially saving state resources that can be redirected toward funding essential community welfare and public services.
Cons for Progressives
- Raising the reporting threshold from $100 to higher federal limits could allow more unreported income to go untaxed, potentially reducing state revenue needed for generous public services and social safety nets.
- By tying state regulations directly to federal law, the state loses some independent oversight over corporate and business payments, making it harder to track small-scale financial activities locally.
- Federal tax thresholds may fluctuate based on conservative federal administrations; tying state law to these thresholds risks adopting regressive federal tax policies without local legislative debate.
Pros for Conservatives
- Eliminates an overly strict state-level regulatory burden by removing the low $100 reporting threshold, increasing corporate freedom and reducing red tape for businesses.
- Aligns state tax codes with federal regulations, making compliance easier and less costly for private enterprises and reducing government interference in small financial transactions.
- Limits state government overreach by preventing the state tax administrator from demanding unnecessary financial reporting on minor payments under the federal threshold.
Cons for Conservatives
- Surrenders state sovereignty over tax policy by automatically tethering Rhode Island's reporting thresholds to federal statutes, subjecting local businesses to the whims of federal bureaucrats.
- If federal reporting thresholds are lowered by a progressive federal administration, Rhode Island businesses will automatically be subjected to stricter reporting requirements without a vote from local representatives.
- Fails to proactively establish a permanent, higher state-level threshold that would guarantee protection for businesses against future federal attempts to increase tax reporting surveillance.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Taxpayers
- Business owners
- Freelancers
- Gig workers
- Accountants
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
None
BillBuddy Impact Ratings
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Public Services
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Regulatory
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Environmental Impact
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Privacy Impact
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 06/07/2026 Introduced, referred to Senate Finance
• 06/07/2026 Scheduled for hearing and/or consideration (06/09/2026)
• 06/08/2026 Proposed Substitute
• 06/09/2026 Committee recommends passage of Sub A
• 06/09/2026 Placed on Senate Calendar (06/10/2026)
• 06/10/2026 Senate passed Sub A
• 06/10/2026 Placed on the House Consent Calendar (06/11/2026)
• 06/11/2026 House passed Sub A in concurrence
• 06/18/2026 Transmitted to Governor
• 06/07/2026 Scheduled for hearing and/or consideration (06/09/2026)
• 06/08/2026 Proposed Substitute
• 06/09/2026 Committee recommends passage of Sub A
• 06/09/2026 Placed on Senate Calendar (06/10/2026)
• 06/10/2026 Senate passed Sub A
• 06/10/2026 Placed on the House Consent Calendar (06/11/2026)
• 06/11/2026 House passed Sub A in concurrence
• 06/18/2026 Transmitted to Governor
Bill Text
SECTION 1. Section 44-30-58 of the General Laws in Chapter 44-30 entitled "Personal Income Tax" is hereby amended to read as follows:
44-30-58. Requirements concerning returns, notices, records, and statements.
(a) General. The tax administrator may prescribe regulations as to the keeping of records, the content and form of returns and statements, and the filing of copies of federal income tax returns and determinations. The tax administrator may require any person, by regulation or notice served upon the person, to make any returns, render any statements, or keep any records that the tax administrator may deem sufficient to show whether or not the person is liable for the tax or for collection of the tax.
(b) Partnerships. Every partnership having any income derived from Rhode Island sources, determined in accordance with the applicable rules of § 44-30-32 as in the case of a nonresident individual, shall make a return for the taxable year setting forth all items of income and deduction and any other pertinent information that the tax administrator may by regulation or instructions prescribe. Any partnership with nonresident partners having any income derived from Rhode Island sources shall be subject to the provisions of § 44-11-2.2.
(c) Information at source. The tax administrator may prescribe regulations and instructions requiring returns of information to be made and filed on or before February 28 of each year as to the payment or crediting in any calendar year of amountsof one hundred dollars ($100) or more consistent with the applicable thresholds for informational filings established under Internal Revenue Code of 1986, as amended, to any Rhode Island personal income taxpayer. The returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal, or payment of interest, rents, salaries, wages, premiums, dividends and other corporate distributions, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, or income. A duplicate of the statement as to tax withheld on wages, required to be furnished by an employer to an employee, shall constitute the return of information required to be made under this section with respect to the wages.
(d) Notice of qualification as fiduciary. Every receiver, trustee in bankruptcy, assignee for benefit of creditors, or other like fiduciary shall give notice of his or her qualification as such to the tax administrator as may be required by regulation.
SECTION 2. This act shall take effect upon passage.
44-30-58. Requirements concerning returns, notices, records, and statements.
(a) General. The tax administrator may prescribe regulations as to the keeping of records, the content and form of returns and statements, and the filing of copies of federal income tax returns and determinations. The tax administrator may require any person, by regulation or notice served upon the person, to make any returns, render any statements, or keep any records that the tax administrator may deem sufficient to show whether or not the person is liable for the tax or for collection of the tax.
(b) Partnerships. Every partnership having any income derived from Rhode Island sources, determined in accordance with the applicable rules of § 44-30-32 as in the case of a nonresident individual, shall make a return for the taxable year setting forth all items of income and deduction and any other pertinent information that the tax administrator may by regulation or instructions prescribe. Any partnership with nonresident partners having any income derived from Rhode Island sources shall be subject to the provisions of § 44-11-2.2.
(c) Information at source. The tax administrator may prescribe regulations and instructions requiring returns of information to be made and filed on or before February 28 of each year as to the payment or crediting in any calendar year of amounts
(d) Notice of qualification as fiduciary. Every receiver, trustee in bankruptcy, assignee for benefit of creditors, or other like fiduciary shall give notice of his or her qualification as such to the tax administrator as may be required by regulation.
SECTION 2. This act shall take effect upon passage.
SECTION 1. Section 44-30-58 of the General Laws in Chapter 44-30 entitled "Personal Income Tax" is hereby amended to read as follows:
44-30-58. Requirements concerning returns, notices, records, and statements.
(a) General. The tax administrator may prescribe regulations as to the keeping of records, the content and form of returns and statements, and the filing of copies of federal income tax returns and determinations. The tax administrator may require any person, by regulation or notice served upon the person, to make any returns, render any statements, or keep any records that the tax administrator may deem sufficient to show whether or not the person is liable for the tax or for collection of the tax.
(b) Partnerships. Every partnership having any income derived from Rhode Island sources, determined in accordance with the applicable rules of § 44-30-32 as in the case of a nonresident individual, shall make a return for the taxable year setting forth all items of income and deduction and any other pertinent information that the tax administrator may by regulation or instructions prescribe. Any partnership with nonresident partners having any income derived from Rhode Island sources shall be subject to the provisions of § 44-11-2.2.
(c) Information at source. The tax administrator may prescribe regulations and instructions requiring returns of information to be made and filed on or before February 28 of each year as to the payment or crediting in any calendar year of amountsof one hundred dollars ($100) or more consistent with the applicable thresholds for informational filings established pursuant to 26 U.S.C. § 1 et seq., as amended, to any Rhode Island personal income taxpayer. The returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal, or payment of interest, rents, salaries, wages, premiums, dividends and other corporate distributions, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, or income. A duplicate of the statement as to tax withheld on wages, required to be furnished by an employer to an employee, shall constitute the return of information required to be made under this section with respect to the wages.
(d) Notice of qualification as fiduciary. Every receiver, trustee in bankruptcy, assignee for benefit of creditors, or other like fiduciary shall give notice of his or her qualification as such to the tax administrator as may be required by regulation.
SECTION 2. This act shall take effect upon passage.
44-30-58. Requirements concerning returns, notices, records, and statements.
(a) General. The tax administrator may prescribe regulations as to the keeping of records, the content and form of returns and statements, and the filing of copies of federal income tax returns and determinations. The tax administrator may require any person, by regulation or notice served upon the person, to make any returns, render any statements, or keep any records that the tax administrator may deem sufficient to show whether or not the person is liable for the tax or for collection of the tax.
(b) Partnerships. Every partnership having any income derived from Rhode Island sources, determined in accordance with the applicable rules of § 44-30-32 as in the case of a nonresident individual, shall make a return for the taxable year setting forth all items of income and deduction and any other pertinent information that the tax administrator may by regulation or instructions prescribe. Any partnership with nonresident partners having any income derived from Rhode Island sources shall be subject to the provisions of § 44-11-2.2.
(c) Information at source. The tax administrator may prescribe regulations and instructions requiring returns of information to be made and filed on or before February 28 of each year as to the payment or crediting in any calendar year of amounts
(d) Notice of qualification as fiduciary. Every receiver, trustee in bankruptcy, assignee for benefit of creditors, or other like fiduciary shall give notice of his or her qualification as such to the tax administrator as may be required by regulation.
SECTION 2. This act shall take effect upon passage.