Imposes a wealth tax on Rhode Island individuals and entities at a rate of one percent (1%) of worldwide wealth.

Rhode Island Wealth Tax Bill

This bill would create a new type of tax in Rhode Island called a "wealth tax." Unlike income taxes, which are based on how much money you *earn* in a year, a wealth tax is based on how much you *own* in total. Under this proposal, Rhode Island individuals and businesses would be required to calculate the total value of everything they own worldwide — including investments, real estate, bank accounts, and other assets — and pay 1% of that total amount to the state each year.

The bill would primarily affect wealthy individuals and entities with significant accumulated assets. For example, someone with a total net worth of $10 million would owe $100,000 annually under this tax. The bill applies to "worldwide wealth," meaning assets held inside and outside of Rhode Island or even outside the United States would be counted when calculating what is owed.

It is important to note that this bill is in its very early stages — it has only been introduced and referred to the House Finance Committee, meaning it has not been debated, amended, or voted on yet. Many details, such as what specific exemptions might apply, the minimum wealth threshold before the tax kicks in, and exactly how assets would be valued, are not yet fully clear from the available information.

If passed, this would be a significant change to how Rhode Island collects taxes, as no U.S. state currently has a broad wealth tax of this kind in effect. Residents with high levels of accumulated assets would be the most directly impacted.