Rhode Island 2026 Regular Session

Rhode Island House Bill H7240

Introduced
1/21/26  

Caption

Generates an estate tax discharge upon the recording of a statement by the executor or other estate representative that the value of the decedent’s gross estate does not require a state or federal tax filing.

Impact

By generating an estate tax discharge upon the filing and recording of a specified statement, H7240 aims to simplify the administrative process for handling estate taxes. For estates of decedents who passed away before January 1, 2025, a nominal fee will be charged for filing this statement, while those passing after this date will not incur any fees. This change is expected to alleviate financial burdens on families handling estate transitions and encourage compliance with tax laws by clarifying the conditions necessary for tax discharge.

Summary

House Bill 7240 aims to amend the current laws governing estate and transfer taxes in Rhode Island, specifically relating to the enforcement and collection of these taxes. The bill proposes that executors, administrators, and heir-at-law, or individuals in possession of real property, must file a statement with the tax administrator within nine months following the death of the decedent. This statement will disclose the full cash value of the estate and other relevant details necessary for calculating the estate tax. Importantly, the bill introduces a provision for an estate tax discharge based on the recorded statement indicating that the gross estate does not require any state or federal tax filing.

Contention

Despite the simplifications, there may be points of contention regarding the bill among legislators and stakeholders. Some may argue that eliminating the filing fee for estates of decedents post-2025 could result in a loss of revenue necessary for tax administration. Others may raise concerns about the potential for misuse of the estate tax discharge process if not properly regulated, thereby allowing high-value estates to circumvent taxation obligations erroneously. This aspect may prompt discussions about the balance between facilitating estate transitions and ensuring fair tax compliance.

Companion Bills

No companion bills found.

Previously Filed As

RI H5755

Generates an estate tax discharge upon the recording of a statement by the executor or other estate representative that the value of the decedent’s gross estate does not require a state or federal tax filing.

RI H5562

Provides that charitable organizations with a gross income of one million dollars ($1,000,000) or less can meet the required reporting and records requirements by providing either an IRS Form 900 or other approved financial statements.

RI S0187

Increases the net taxable estate exemption to four million dollars ($4,000,000) for deaths that occur on or after January 1, 2026.

RI H5783

Increases the net taxable estate exemption to four million dollars ($4,000,000) for deaths that occur on or after January 1, 2026.

RI H5754

Increases the net taxable estate exemption to four million dollars ($4,000,000) for deaths that occur on or after January 1, 2026.

RI S0455

Increases the net taxable estate exemption to $3,600,000 on January 1, 2026 and increases the exemption by $1,000,000 on January 1, 2027, and every year thereafter.

RI S0776

Increases the federal adjusted gross income threshold for modification for taxable social security income. Amends references to federal adjusted gross income as pertains to modification of taxable retirement income from certain pension plans or annuities.

RI S0451

Exempts the sale of Bitcoin from state income tax, if such sale is valued at less than one thousand dollars ($1,000).

RI S0413

Increases the LLC organization fee to $500. Exempts the LLC from filing an annual tax return, paying the minimum tax and obtaining a letter of good standing from the division of taxation in order to dissolve.

RI S1040

Creates new tax on gains from sale or exchange of real property held for short periods of time, 6 years or less, establishes a comprehensive framework to calculate and implement enforcement and provides imprisonment and/or fines for those who evade taxes.

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