Bi-annual application of consumer price index to Rhode Island Motor Fuel Tax

The Rhode Island Division of Taxation has applied a statutory formula to determine the Rhode Island Motor Fuel Tax rate that will be in effect as of July 1, 2023. The Division is providing information regarding this most recent adjustment in advance of the July 1, 2023 effective date to allow stakeholders to take the necessary steps to accommodate the new rate.

Details are available in Advisory 2023-10.

Latest Administrative Decisions

 In the latest Administrative Decisions, the issues addressed were:

• Whether the Taxpayer owes the Division's assessment for tax years 2015 through 2019 in relation to the rental vehicle surcharge ("RVS"). Details are contained in Administrative Decision 2023-03. 
• Whether the Division correctly denied the Taxpayer's refund request for its payment of hard to dispose material tax for 2018. Details are contained in Administrative Decision 2023-04.

Application period for Wavemaker reopens

The application period for the Wavemaker Fellowship has reopened.

The Wavemaker Fellowship is available to graduates who have incurred student loan debt during the completion of an associate degree, bachelor's degree, or graduate degree, and are pursuing careers in science, technology, engineering, mathematics, or design-related fields -- including life, natural or environmental sciences; computer, information or software technology; advanced mathematics or finance; engineering; industrial design or other commercially related design field; or medical or medical device technology, or healthcare in the state.

Any resident or nonresident with higher education loan debt who is employed in Rhode Island in one of the fields mentioned above is encouraged to apply. The maximum annual Rhode Island tax credit awarded under the Wavemaker program is $6,000 for graduate degree holders, $4,000 for bachelor's degree holders, and $1,000 for holders of an associate degree. 

All applications must be submitted by 11:59, June 14, 2023, for consideration.

For more details on the Wavemaker program, visit the Wavemaker website.

Report on alcoholic beverages

The Rhode Island Division of Taxation has posted the annual report on the sales and taxation of alcoholic beverages. 

Read the report here.

Guide to the modification for Income from Pensions, 401(k) Plans, Annuities, and Other Such Sources

The due date is approaching for 2022 Personal Income Tax returns. Don't forget Rhode Island's special modification relating to income from 401(k) plans, pensions, and certain other sources. 

View the Division's annually updated Guide to the Modification for Income from Pensions, 401(k) Plans, Annuities, and Other Such Sources (Publication 2023-01) to see if you qualify. 

Latest Administrative Decision

In the latest Administrative Decision, the issue addressed is whether the Taxpayer owes additional income tax, interest, and a penalty for the tax year 2018.

Details are contained in Administrative Decision 2023-02.

Extension filing: extension is for filing only – payment due by original due date

The Rhode Island Division of Taxation today provides guidance for taxpayers and tax professionals regarding personal income tax extension filing.

If a taxpayer is unable to file a return by the due date, a proper extension must be filed. This year both the Federal and Rhode Island due date for personal income tax filings and payments is April 18^th.

More information is available in Advisory 2023-09.