AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX

SB 2052 proposes to repeal the Rhode Island minimum tax that corporations must pay regardless of their income level. Under the current law, every corporation is required to pay at least $450 annually, a fee that would be eliminated if this bill passes. The legislation also includes a provision to lower the minimum tax threshold from $450 to $400 for tax years beginning on or after January 1, 2017, though the primary action is the removal of the minimum tax requirement itself. This change directly affects all corporations operating in the state by removing the mandatory minimum payment obligation.