H 7398Administration & Compliance

Taxation - Rhode Island Tax Amnesty Act of 2017

Creates an annual one-week period where overdue taxes can be paid without penalties, resulting in the reinstatement of suspended driver's licenses.

Held for study

Population
Affected

Email Legislator

Introduced Jan 28, 2026Committee House Finance

Plain-English Summary

This bill amends the Rhode Island Tax Amnesty Act. It requires the state tax administrator to designate a specific one-week period each fiscal year during which individuals with overdue taxes can pay their debt in full. If the taxes are paid during this amnesty week, the state will waive all interest and penalties associated with the debt. Furthermore, if a person's driver's license was suspended specifically due to the nonpayment of these taxes, paying the debt in full during this period will result in the reinstatement of their license and driving privileges.

For younger readers

Sometimes, when adults owe money to the government for taxes and don't pay on time, they get in trouble. They might have to pay extra money as a punishment, and the government might take away their permission to drive a car. This new rule says that for one week every year, these adults can pay the tax money they owe without paying the extra punishment money. If they pay what they owe during that special week, the government will let them drive their cars again.

Who & Where It Applies

Impacted groups

Delinquent taxpayersDrivers with suspended licensesDepartment of RevenueTax administratorState budget office

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

Amount unknown

Bill Analysis

Both viewpoints

For Progressives

Restores driving privileges for individuals who pay their principal tax debt, removing a significant barrier to employment, healthcare access, and daily life for low-income residents.
Eliminates punitive interest and penalties during the amnesty week, making it easier for struggling families to clear debts without being crushed by compounding financial fees.
Provides a structured, non-criminalizing path for reintegration into the tax system for disadvantaged communities, encouraging compliance rather than continued financial exclusion.
Reduces state revenue by waiving penalties and interest, potentially decreasing the funds available for social services and public welfare programs that rely on tax collection.
The requirement to pay the full principal within a single week may be impossible for the poorest residents to meet, effectively reserving the benefit for those with access to capital or savings.
May inadvertently benefit wealthy tax evaders who can afford to wait for an amnesty period to pay their fair share without consequence, rather than prioritizing relief solely for the needy.

For Conservatives

Encourages the immediate payment of delinquent taxes, bringing necessary revenue into the state treasury to fund government operations without raising tax rates on law-abiding citizens.
Reduces the regulatory and financial burden on citizens by removing government-imposed penalties and interest fees during the amnesty period.
Restores personal freedom by reinstating driver's licenses, allowing individuals to return to the workforce and contribute to the economy rather than relying on government assistance.
Undermines the rule of law by rewarding individuals who failed to meet their legal obligations while law-abiding citizens paid their taxes on time and in full.
Creates a moral hazard where taxpayers may intentionally delay payments in the future, expecting a recurring amnesty period to wipe out penalties.
Grants excessive discretion to an unelected bureaucrat, the tax administrator, to arbitrarily determine when the amnesty week occurs each year.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 9 additions

SECTION 1. Section 44-6.5-4 of the General Laws in Chapter 44-6.5 entitled "Rhode Island Tax Amnesty Act of 2017" is hereby amended to read as follows: 44-6.5-4. Interest under tax amnesty.

(a) Notwithstanding any provision of law to the contrary, interest on any taxes paid for periods covered under the amnesty provisions of this chapter shall be computed at the rate imposed under § 44-1-7, reduced by twenty-five percent (25%).

(b) Notwithstanding the provisions of subsection (a) of this section, interest and penalties shall be waived on unpaid delinquent taxes; provided that, the tax is paid in full during a one week tax amnesty period, to be determined by the tax administrator, for each fiscal year. The tax administrator shall make available suitable forms with instructions for making tax payments.

(c) Upon payment in full of all delinquent taxes pursuant to subsection (b) of this section, a driver’s license suspended, due to the nonpayment of taxes, shall be reinstated, along with all privileges thereto.

SECTION 2. This act shall take effect upon passage.