Rhode Island enacts combined reporting, corporate rate reduction, tax haven legislation, and other changes
State and Local Tax
Signed on June 19, 2014, and applicable to tax years beginning on or after January 1, 2015, H.B. 7133 implements the following changes into Rhode Island’s Business Corporation Tax: (1) a tax rate reduction from 9% to 7%, (2) mandatory unitary combined reporting, (3) special treatment for entities organized in tax haven countries, (4) single sales factor apportionment, and (5) the repeal of related party expense addbacks. Additionally, H.B. 7133 repeals the state’s franchise tax for tax years beginning on or after January 1, 2015. The bill also requires the establishment of an independent appeals process to resolve alternative apportionment disputes.