AN ACT RELATING TO TAXATION -- SURPLUS FUNDS TAX CREDIT ACT (Mandates that any surplus state tax revenue received in any fiscal year would be refunded to the taxpayers of this state on a proportional basis in relation to the personal income tax liability incurred by the taxpayers in that fiscal year.)

S2099

2026 -- S 2099
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LC003285
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- SURPLUS FUNDS TAX CREDIT ACT

Introduced By:
Senators Rogers, Paolino, E Morgan, and de la Cruz

Date Introduced:
January 16, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by
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adding thereto the following chapter:
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CHAPTER 73
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SURPLUS FUNDS TAX CREDIT ACT
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44-73-1. Title.

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This chapter shall be known and may be cited as the "Surplus Funds Tax Credit Act."
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44-73-2. Tax credit resulting in taxpayer refund.

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(a) If net state tax revenues in any fiscal year exceed the projected revenue estimates as
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contained in the budget for said fiscal year, the amount of such excess, as determined by the state
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budget officer and reported to the director of the department of revenue by September 1 of each
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fiscal year, shall result in a credit equal to the total amount of such excess. The credit shall be
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applied to the then current personal income tax liability of all taxpayers on a proportional basis to
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the personal income tax liability incurred by all taxpayers in the immediately preceding taxable
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year.
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(b) Upon receipt of the report by the director required in subsection (a) of this section, the
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state budget officer shall then make the determination as to whether the net state tax revenue
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exceeds the projected revenue estimates as contained in the budget and by what amount, if any, on
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or before September 20 of each fiscal year.
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(c) The excess shall be calculated, and the excess amount shall be refunded to the taxpayers

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in proportion to the personal income tax liability incurred by the taxpayers in the immediately
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preceding taxable year. The percentage to determine the amount of the refund in dollars shall be
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calculated by the director.
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44-73-3. Enforceability by taxpayers.

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The supreme court or superior court may, upon the petition of not less than twenty-eight
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(28) taxable inhabitants of the state, not more than seven (7) of whom shall be from any one county,
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enforce the provisions of this chapter. If successful, said taxable inhabitants shall be entitled to
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recover reasonable attorneys' fees and other costs from the state incurred in maintaining such suit.
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44-73-4. Rules and regulations.

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The director shall take such action and shall have the authority to promulgate such rules
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and regulations as are necessary to implement the provisions of this chapter.
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SECTION 2. This act shall take effect on July 1, 2026.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- SURPLUS FUNDS TAX CREDIT ACT
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This act would mandate that any surplus state tax revenue received in any fiscal year would
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be refunded to the taxpayers of this state on a proportional basis in relation to the personal income
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tax liability incurred by the taxpayers in that fiscal year.
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This act would take effect on July 1, 2026.
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