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HB 7398

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

2026 Regular Session Introduced by Jon Brien and 9 co-sponsors

Rhode Island would offer a temporary tax amnesty, reducing penalties and some interest for eligible delinquent taxes if paid within a defined window.

05/07/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7398

Summary of HB 7398 (Rhode Island) – Rhode Island Tax Amnesty Act of 2017

Note: The bill title references the “Rhode Island Tax Amnesty Act of 2017,” but the 2026 bill number HB 7398 in Rhode Island appears to be a reintroduction or update of a tax amnesty concept. The summary below focuses on the provided bill’s stated actions, provisions, sponsors, and timeline as currently listed.

Purpose and Intent

  • The bill aims to create or authorize a tax amnesty program for Rhode Island tax liabilities. Tax amnesty programs typically allow taxpayers to pay outstanding tax debts (often with reduced penalties and interest) during a designated period, with limited or no enforcement action for pre-amnesty liabilities.
  • The overarching goals usually include increasing revenue collection, improving compliance, and addressing tax delinquencies without lengthy enforcement processes. The specific policy intent and scope would be clarified in the bill’s text, including which taxes are eligible and whether new penalties/criteria apply.

Key Provisions (Highlights to Expect)

  • Eligible Liabilities: The bill would specify which state taxes and periods are eligible for amnesty (e.g., delinquent income, sales, corporate, and withholding taxes). It may exclude certain liabilities (e.g., fraud, criminal noncompliance, or liabilities already in collection).
  • Amnesty Window: A defined time window during which eligible taxpayers can apply for amnesty, submit payments, and receive relief from penalties and some interest accrual.
  • Penalty and Interest Reductions: Provisions typically offer substantial reductions—commonly waivers of penalties and reduced interest accrual—for timely payment of the liability during the amnesty period.
  • Interest Treatment: Clarification on how interest accrues before, during, and after the amnesty period; whether any remaining interest after amnesty is subject to collection actions.
  • Payment Terms: Terms for paying the owed amount if full payment within amnesty window is not required; may include lump-sum payments or structured payment plans for the remaining balance.
  • Protection from Enforcement: Provisions shielding participating taxpayers from certain enforcement actions related to amnesty-eligible liabilities for the period covered, subject to compliance with terms.
  • Post-Amnesty Compliance: Measures to improve ongoing tax compliance, such as enhanced reporting, reporting requirements for participants, or future penalties for noncompliance after amnesty.

Affected Parties

  • Taxpayers with Delinquent Liabilities: Individuals and businesses with outstanding Rhode Island tax debts that fall within the amnesty program's scope.
  • Rhode Island Department of Revenue: Responsible for administering the amnesty program, processing applications, collecting payments, and tracking compliance.
  • Tax Practitioners/Advisors: Those assisting clients in identifying eligible liabilities and submitting amnesty requests.

Procedural and Timeline Aspects

  • Introduction and Referral: Introduced in January 2026 and referred to House Finance (as of 01/28/2026).
  • Hearing Schedule: Scheduled for hearing and/or consideration on May 7, 2026 (as per 05/01/2026 action history).
  • Effective Date: The bill would specify when the amnesty program takes effect if enacted (often the start of the amnesty window or a particular fiscal year).
  • Sunset/Expiration: Many amnesty programs include sunset provisions specifying the end of the program and any post-amnesty reporting requirements.
  • Implementation Details: The bill would outline the administrative rules, application process, documentation required, and any penalties for misuse or misrepresentation.

Implications and Considerations

  • Potential revenue impact from past-due taxes recovered during the amnesty period.
  • Administrative cost to the Rhode Island Department of Revenue for running the program.
  • Effects on voluntary compliance incentives and future tax collections.
  • Safeguards to prevent exploitation (e.g., for fraud, repeated amnesty participation, or evasion).

If you’d like, I can tailor this summary to emphasize specific taxes (e.g., personal income, corporate, sales) or provide a line-by-line breakdown once the bill’s full text is available.

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

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