AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

2026 Regular Session Introduced by Lou DiPalma

Rhode Island would expand information reporting and partnership disclosures to improve tax verification and collection, with new filing rules defined by future regulations.

06/23/2026 Signed by Governor

Summary of SB 3367 (2026) – Rhode Island Personal Income Tax

Purpose and intent

SB 3367 aims to adjust administrative requirements for Rhode Island’s personal income tax by authorizing the tax administrator to implement and enforce additional informational reporting. The bill focuses on standardizing and expanding reporting requirements to improve tax administration and compliance, aligning Rhode Island practices with federal information filing thresholds.

Key provisions and changes

Regulatory authority expanded (Sect. 44-30-58): The tax administrator is empowered to prescribe regulations related to:

Keeping records
Content and form of tax returns and statements
Filing of copies of federal income tax returns and determinations
Requiring returns, statements, or records the administrator deems sufficient to determine tax liability or collection

Partnership taxation (Sect. 44-30-58(b)): Any Rhode Island–sourced income by partnerships (per rules analogous to nonresident individuals) must file a return for the taxable year detailing all income, deductions, and other pertinent information as prescribed by regulation. Partnerships with nonresident partners earning Rhode Island–sourced income remain subject to existing provisions (Rhode Island General Law § 44-11-2.2).

Information at source (Sect. 44-30-58(c)): The tax administrator may require annual information returns by February 28 for calendar-year payments or credits of $100 or more, consistent with federal thresholds. This may apply to:

Lessees or mortgagors
Fiduciaries
Employers and all state/civic employees and officers
Municipal or political subdivisions paying or distributing interest, rents, salaries, wages, premiums, dividends, etc. A duplicate W-2 withholding statement provided by employers can serve as the required information return for wages.

Fiduciaries (Sect. 44-30-58(d)): Fiduciaries such as receivers, bankruptcy trustees, or assignees must notify the tax administrator of their qualification as required by regulation.

Who is affected

Taxpayers with Rhode Island–sourced income, including individuals, partnerships, fiduciaries, and entities that pay or receive interest, rents, wages, dividends, or other taxable income.

Partnerships with Rhode Island–sourced income and, where applicable, partners who are nonresidents.

Employers, fiduciaries, and state/local governments that withhold, pay, or report income information.

Fiduciaries (receivers, bankruptcy trustees, etc.) who must notify the tax authority of their status.

Procedural and timeline aspects

Effective date: The act takes effect upon passage.

Regulatory process: The bill relies on subsequent regulations issued by the Rhode Island Department of Revenue to implement the new information-reporting framework and any related filing requirements.

Reporting deadline reference: Annual informational filings are contemplated to be due by February 28 of each year, aligning with a February deadline similar to other informational returns, subject to regulatory definitions and thresholds tied to federal IRS guidelines.

Practical impact

The state would enhance its ability to verify and collect taxes through expanded information reporting and partnership disclosures.

Taxpayers and entities may face additional filing obligations, though some requirements may be satisfied by existing wage-related information (e.g., W-2s for wages).

The reliance on regulations means specifics (thresholds, forms, and exact data to be reported) will be established after passage.