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Rhode Island Tax

Individual Income Tax Forms

Form RI-1040 Resident Individual Income Tax Return

Form RI-1040NR Nonresident Individual Income Tax Return

Corporate Income Tax Forms

Form RI-1120C Business Corporation Tax Return

Form RI-1120S Business Corporation Tax Return

Sales Tax Forms

Exemption Form

Form Streamlined Sales Tax Return

Form BAR 092010 Business Application and Registration

Form Claim for Refund – Sales or Use Tax 2011

Form T205 Consumer Use Tax Return

Form Sales and Use Tax Return Quarterly

Form Sales and Use Tax Return (Monthly)

Form Annual Reconciliation 2011

Property Tax Forms

Form 1040H Property Tax Relief Claim

Primary Concerns:

The Ocean State, despite being the country’s smallest state, still faces many of the same big problems that are facing states all over the country due to the current economic climate.  Chief among these problems is state budget shortfalls causes by limitations of tax revenue.  Due to serious flooding caused by storms in early 2010 that effected over 10,000 homeowners, the collection of revenues appears to be very limited going forward, as delayed tax filing deadlines combined with emergency tax breaks for those who endured flood damage will cause less money coming into the state’s already depleted coffers.

One of the immediate actions Rhode Island has undertaken has been to delay the dispersal of tax refunds in order to have enough cash on hand to pay bill as necessary.  Many states have enacted this controversial, but necessary, measure, but due to the effects of flood damage with many taxpayers trying to rebuild and restore what they lost, it has made seem the state seem greedy and unsympathetic.

Still, the state is faced with a considerable budget shortfall, and many feeling that the losses will eventually have to be felt by the state’s corporate sector, which already endures a very high flat income tax.  However, with individual income taxes staggered to where households with high incomes already endure high taxation, and with the state committed to keeping sales tax stable, looking to corporate tax revenues may be the only way Rhode Island to keep its proverbial head above the proverbial water.

Income Tax:

All individuals residing in Rhode Island full or part time or reside out of state but draw income from within the state are obligated to file a state income tax return.  Rhode Island’s personal income tax is at a progressive rate staggered over a number of brackets.

For single taxpayers paying less than $31,850 the rate on income is 3.75%.  For income between $31,850 and $77,100 the rate on all excess income above the base of $31,850 is 7%.  Between $77,101 and $160,850, the rate on excess income above the base is 7.75%, and between $160,851 and $349,700 the rate on excess income above the base will be 9%.  On income above $349,701, the rate on the excess is 9.9%, one of this highest individual income tax rates in the county.

For married persons filing jointly, the rates remain the same, but the bracketing is different.  All income below $53,150 is taxed at 3.75%.  7% is the rate on all excess income between $53,150 and $128,500, with 7.75% for excess between $128,501 and $195,850.  Between $195,851 and $349,700 the rate on the excess is 9 percent, and like with single payers, the rate above $349,701 is 9.9%.

Corporate Income Tax:

Rhode Island has a flat income tax on all corporations of 9%, which is one of the highest in the country.  In addition to this, the state also implements a litter permit on businesses that sell food and beverages, has an unemployment compensation tax that all employers must pay, and an additional Business Corporation tax.

Property Tax:

Rhode Island has some of the highest property taxes in the country, and property taxes are collected at both the state and local level (though far more at the local level). Taxes are levied against all forms of personal property and there is also a motor vehicle excise tax.

The real property tax rales are also taken state wide against full value of the property instead of against taxable property.  In many instances, property taxes can vary between residential and commercial property by as much as 80% (though in some counties they remain constant).

Real property tax rates vary on a county to county basis, but residential properties are usually between $12 to $18 per every $1000 of the property’s value.  Property values are determined by the county assessor.

Sales Tax:

Rhode Island sales tax is 7% statewide (which is logistically understandable since the state is so small).  Exempted items include unprepared food, prescription and non-prescription drugs, all clothing and footwear, newspapers, and many funery supplies, like coffins. There is also an additional 1% tax statewide on all restaurant services.

Rhode Island is also part of the Streamlined Sales Tax Initiative, which is a multistate initiative that tries to standardize the items and services that are taxed nationwide, plus standardizes the means by which the taxes will be collected.  Since many states require sales taxes to be collected in many different ways, this can be problematic for many franchises and corporations who operate in many different states.

Rhode Island also has the highest cigarette tax in the nation, at $3.46 per pack, and gasoline is taxed at $0.33 per gallon.

Tax Forms:

In Rhode Island, the state income tax form is called the 1040 (just like its federal counterpart), with many variations available depending on circumstances.  The 1040NR is for nonresidents, for instance, and 1040MU being for individuals who pay taxes to multiple states.

The corporate tax forms are called the 1120, and the also have man variations, such as the 1120ES for estimated taxes.


Rhode Island Tax – An Overview

Rhode Island is a state located in the New England region of the Northeastern United States. With a population of around 1.1 million people, Rhode Island is the smallest state by land area and second-smallest by population. The state of Rhode Island has its own tax laws, which are different from the federal tax laws. In this article, we will take a look at the various taxes that are applicable in the state of Rhode Island and how they affect individuals and businesses.

Rhode Island Income Tax

The Rhode Island income tax is a progressive tax system that applies to the income earned by individuals and businesses in the state. The tax rates range from 3.75% to 5.99%, depending on the income level of the individual or business.

For individual taxpayers, the Rhode Island income tax rate varies depending on their income level. For example, individuals who earn up to $63,050 in a year are subject to a tax rate of 3.75%. Individuals who earn between $63,051 and $146,350 in a year are subject to a tax rate of 4.75%. Individuals who earn between $146,351 and $209,550 in a year are subject to a tax rate of 5.99%. Finally, individuals who earn over $209,551 in a year are subject to a tax rate of 5.99%.

For businesses, the Rhode Island income tax rate is a flat rate of 7%. This tax is calculated on the net income of the business.

Rhode Island Sales Tax

The Rhode Island sales tax is a tax that is charged on the purchase of goods and services in the state. The current sales tax rate in Rhode Island is 7%. However, certain items are exempt from the sales tax, such as prescription drugs, newspapers, and certain food items.

Rhode Island Property Tax

The Rhode Island property tax is a tax that is based on the value of the property owned by an individual or business in the state. The property tax rate varies depending on the city or town in which the property is located. In Rhode Island, the property tax rate can range from 0.3% to 4%.

Rhode Island Estate Tax

The Rhode Island estate tax is a tax that is levied on the transfer of property from a deceased individual to his or her beneficiaries. The current Rhode Island estate tax exemption is $1,595,156. This means that estates with a value of less than this amount are exempt from the Rhode Island estate tax.

Rhode Island Capital Gains Tax

The Rhode Island capital gains tax is a tax that is levied on the profits earned from the sale of assets such as stocks, bonds, and real estate. The Rhode Island capital gains tax rate is the same as the Rhode Island income tax rate, ranging from 3.75% to 5.99%.

Rhode Island Excise Tax

The Rhode Island excise tax is a tax that is levied on certain goods such as gasoline, cigarettes, and alcohol. The Rhode Island excise tax rate varies depending on the item being taxed. For example, the excise tax on gasoline in Rhode Island is 33 cents per gallon.

Rhode Island Corporate Tax

The Rhode Island corporate tax is a tax that is charged on the net income of corporations that do business in the state. The Rhode Island corporate tax rate is a flat rate of 7%.

Rhode Island Unemployment Tax

The Rhode Island unemployment tax is a tax that is paid by employers in the state to fund the state’s unemployment insurance program. The Rhode Island unemployment tax rate varies depending on the employer’s history of unemployment claims.

Rhode Island Use Tax

The Rhode Island use tax is a tax that is charged on goods that are purchased outside of Rhode Island but used within the state. For example, if an individual buys a product online from out of state and uses it in Rhode Island, the individual is required to pay the Rhode Island use tax on that product. The Rhode Island use tax rate is the same as the Rhode Island sales tax rate, which is 7%.

Conclusion

In conclusion, the state of Rhode Island has its own tax laws that apply to individuals and businesses in the state. These taxes include the income tax, sales tax, property tax, estate tax, capital gains tax, excise tax, corporate tax, and unemployment tax. The specific rates and exemptions for these taxes vary depending on the type of tax and the income or value of the individual or business. It is important for individuals and businesses in Rhode Island to consult with a tax professional to ensure that they are complying with all applicable tax laws and regulations.