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SB 656

AN ACT RELATING TO TAXATION -- RHODE ISLAND TAX AMNESTY ACT OF 2017

2025 Regular Session Introduced by Jake Bissaillon and 7 co-sponsors

Rhode Island tax amnesty program allows delinquent taxpayers to settle outstanding tax debts with reduced penalties and interest during a limited enrollment period.

05/13/2025 Committee recommended measure be held for further study
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Bill Summary · SB 656

Legislative bill overview

SB 656 establishes a tax amnesty program in Rhode Island that allows taxpayers with outstanding tax liabilities to resolve their debts by paying the owed taxes with reduced or waived penalties and interest. The program provides a limited window during which eligible taxpayers can come forward voluntarily without facing additional enforcement actions or criminal prosecution related to their unpaid taxes.

Why is this important

Tax amnesty programs generate revenue for state governments while incentivizing voluntary compliance from taxpayers who might otherwise avoid payment indefinitely. For Rhode Island, this could recover funds owed to the state while reducing the administrative costs of enforcement and collection efforts. However, the program's effectiveness depends heavily on participation rates and the specific terms offered.

Potential points of contention

  • Fairness concerns: Critics argue that amnesty programs reward non-compliance and unfairly benefit tax evaders compared to compliant taxpayers who paid their obligations on time
  • Revenue predictability: The actual revenue generated is uncertain, making budget planning difficult; amnesty may cannibalize future revenue if participants simply delay payment strategies
  • Program terms unclear: The bill's specific details (amnesty period length, penalty/interest reduction percentages, eligibility criteria) are not specified in this summary, which could significantly affect both revenue and fairness impacts

Compiled from official sources — confirm details with the bill’s official record.

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