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RI S2549
Bill
AI Summary
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Imposes a tax on gains from real property sales in Rhode Island for properties held less than 6 years, with rates ranging from 5% to 80% based on holding period and gain percentage (e.g., 80% tax for properties held less than 4 months with gains of 200% or more of basis)
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Requires buyers to withhold 10% of all consideration paid to sellers for properties held less than 6 years and remit to the tax administrator; sellers must file returns within 30 days of sale
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Excludes certain sales from the tax, including property sold by 501(c)(3) nonprofits, divorce-related property transfers, farmland/open-space sales to conservation organizations, and agricultural land transfers between family members
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Allows the total tax due to be reduced by federal capital gains taxes paid on the same property sale
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Criminal penalties include up to 2 years imprisonment and/or fines up to $10,000 or 5 times the tax evaded (whichever is greater) for willful tax evasion
Legislative Description
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.
Taxation
Last Action
Introduced, referred to Senate Finance
2/13/2026