Budget & Taxes (Business Taxes)

signed · Rhode Island · Senate Apr 10, 2026

SB 2040: AN ACT RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES

SB 2040 authorizes the town of Bristol to apply the owner-occupied tax rate to mixed-use properties (such as homes with small businesses) when the residential portion is owner-occupied, instead of the higher commercial rate. This directly affects Bristol property owners who live in homes that also include commercial space, allowing them to pay the lower residential tax rate on the entire property. The bill amends tax classification rules to explicitly permit Bristol to include these properties in the owner-occupied residential class (Class 1). This policy change simplifies tax treatment and reduces the tax burden for qualifying property owners in Bristol.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes lower residential tax rate for mixed-use properties, providing tax relief to Bristol homeowners with small businesses, aligning with middle-income tax relief indicators.90% confidence

Sub-Topics Business Taxes

in committee · Rhode Island · Senate Jan 23, 2026

SB 2231: AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION

SB 2231 exempts the trade-in value of pickup trucks weighing 14,000 pounds or less from sales and use taxes. This means when a customer trades in a qualifying pickup truck toward a new vehicle purchase, the trade-in value is excluded from the taxable amount for the new vehicle. The bill directly affects car dealers and consumers involved in such trade-in transactions, reducing the tax burden on the new vehicle purchase. The exemption applies specifically to the trade-in value portion of the transaction, not the full purchase price.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts trade-in value from sales tax, reducing tax burden on vehicle purchases as tax relief for consumers.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Rhode Island · House Jan 28, 2026

HB 7396: AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX -- AFFORDABLE HOUSING TAX CREDIT ACT

Creates an affordable housing business tax credit as well as eliminate sales tax on any materials purchased for use in the renovation of affordable rental housing.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates business tax credit and eliminates sales tax on affordable housing renovation materials, providing tax relief for housing affordability programs.90% confidence ✓ HousingSupports HousingCreates affordable housing tax credit and eliminates sales tax on renovation materials, directly advancing affordable housing development per bill title and summary.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives Affordable Housing Housing Finance Renters

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died · Rhode Island · House May 7, 2026

HB 7397: AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX

HB 7397 repeals the corporation minimum tax, a flat fee that small businesses had to pay regardless of profits. This change directly affects small businesses operating in the state that previously owed this minimum tax. The bill removes the requirement for these businesses to pay the minimum tax, simplifying their tax obligations under the current business corporation tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals minimum tax for small businesses, providing direct tax relief and reducing their tax burden under current code.95% confidence

Sub-Topics Business Taxes

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in committee · Rhode Island · Senate Jan 23, 2026

SB 2243: AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION

Exempts from the sales tax eligible school supplies, costing less than $30.00, purchased within one week prior to the commencement of the academic year.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts school supplies under $30 from sales tax, providing direct tax relief for families purchasing essential items.95% confidence ✓ EducationSupports EducationExempts school supplies under $30 from sales tax, reducing costs for families and improving access to educational materials for K-12 students.85% confidence

Sub-Topics Business Taxes Sales Tax State Budget

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died · Rhode Island · Senate May 28, 2026

SB 2022: AN ACT RELATING TO TAXATION -- BUSINESS CORPORATION TAX

SB 2022 repeals Rhode Island's minimum business corporation tax, which required corporations to pay at least $400 annually regardless of profits. This change directly affects corporations subject to Rhode Island's business tax, particularly those that would have owed the minimum amount under current law. The bill removes the $400 annual minimum tax provision (previously $450 for 2015-2016 tax years), meaning corporations will only pay tax based on their actual net income. The repeal takes effect upon the bill's passage.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals minimum business tax, reducing state tax revenue from corporations and weakening fiscal management.90% confidence

Sub-Topics Business Taxes

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