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

2026 Regular Session Introduced by John Burke and 7 co-sponsors

Lifts penalties and reduces interest on delinquent taxes paid during a defined one-week amnesty window, with license reinstatement upon full payment.

06/09/2026 Senate passed as amended (floor amendment)

Summary of Bill

Purpose and intent

SB 2370, introduced in the Rhode Island Senate for the 2026 session, would amend the Rhode Island Tax Amnesty Act of 2017 to modify how interest is calculated on taxes paid under amnesty and to expand relief by waiving penalties and interest for delinquent taxes paid during a designated one-week amnesty period. It also links payment of delinquent taxes to the reinstatement of a suspended driver’s license.

Key provisions and changes

Interest on amnesty-period payments (new structure): Interest on taxes paid for periods covered by the amnesty provisions would be calculated at the standard rate under § 44-1-7, reduced by 25%. This reduces the burden of interest for eligible amnesty payments.

Penalties and interest waived during amnesty (conditional): For unpaid delinquent taxes, interest and penalties would be waived if the tax is paid in full within a one-week amnesty period determined by the tax administrator for each fiscal year. The tax administrator would provide forms and instructions for making these payments.

Driver’s license reinstatement (conditioned relief): Upon full payment of all delinquent taxes under the amnesty, a driver’s license that had been suspended due to nonpayment would be reinstated, along with all associated privileges.

Effective date: The act would take effect upon passage.

Who/what would be affected

Taxpayers with delinquent taxes covered by the Rhode Island Tax Amnesty Act of 2017 would benefit from reduced interest during amnesty and potential waivers of interest and penalties if they pay within the designated one-week window.

Individuals with suspended driver’s licenses due to nonpayment who participate in the amnesty program would have their licenses reinstated after paying their delinquent taxes in full.

Rhode Island Tax Administrator would administer the one-week amnesty window, publish eligible forms, and determine the applicable year-by-year window.

Procedural and timeline aspects

The amnesty period is a one-week window each fiscal year, to be set by the tax administrator.

Eligible taxpayers must pay the delinquent taxes in full within that window to qualify for waivers of interest and penalties.

The bill specifies that when payment is made in full, a previously suspended driver’s license is reinstated.

The act becomes effective immediately upon passage.

Practical impact

The bill aims to improve tax collection by incentivizing full payment of delinquent taxes through reduced interest during amnesty and potential waivers of penalties, while also facilitating return to normal driving privileges for taxpayers who resolve their debt.

It provides a structured, time-limited opportunity each year for taxpayers to settle obligations with reduced financial consequences and expedited license restoration.