S2370aaAdministration & Compliance

Taxation - Rhode Island Tax Amnesty Act of 2017

This bill waives penalties on overdue taxes paid during a 75-day amnesty period and reinstates suspended driver's licenses.

Introduced38 Yea0 Nay0 Not voting

Population
Affected

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Introduced Jan 30, 2026Committee Senate Finance

Plain-English Summary

This bill creates a 75-day tax amnesty period every fiscal year. During this time, individuals with unpaid, overdue state taxes can pay their original tax balance in full. If they do, the state will waive any additional interest and penalties that were added to their debt. Additionally, if a person's driver's license was suspended because they failed to pay their taxes, their license and driving privileges will be fully reinstated once they pay their overdue tax balance in full during this 75-day period.

For younger readers

Sometimes people owe the government money called taxes. If they are late paying, they get charged extra money as a punishment, and sometimes they lose their driver's license. This bill creates a special 75-day window every year. If people pay the original money they owed during this time, they do not have to pay the extra punishment money. Also, if they lost their driver's license because they didn't pay their taxes, they will get their license back so they can drive again.

Who & Where It Applies

Impacted groups

Delinquent taxpayersIndividuals with suspended driver's licensesState tax administrators

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

Amount unknown

Bill Analysis

Both viewpoints

For Progressives

Provides significant financial relief by waiving punitive interest and penalties for individuals who may have fallen behind on their taxes due to economic hardship.
Removes systemic barriers to employment and mobility by reinstating suspended driver's licenses, which disproportionately affect low-income residents who need to drive to work.
Creates a predictable, annual pathway for people to clear their state debts, helping to reintegrate them into the economy while generating revenue for essential public services.
Requires taxes to be paid "in full" during the 75-day window, which may exclude the poorest and most disadvantaged residents who cannot afford large lump-sum payments.
Fails to abolish the underlying practice of suspending driver's licenses for debt, which is a punitive measure that disproportionately harms low-income individuals and criminalizes poverty.
May inadvertently benefit wealthy individuals or corporations who delayed paying taxes, allowing them to avoid paying their fair share of interest that could have funded social programs.

For Conservatives

Encourages personal responsibility by requiring delinquent taxpayers to pay their principal tax debts in full in order to receive any waivers or restored privileges.
Increases state revenue collection efficiently without creating new taxes or expanding government bureaucracy, appealing to principles of fiscal conservatism.
Reduces the administrative burden and costs associated with the government having to chase down long-overdue delinquent accounts.
Undermines respect for the rule of law by essentially rewarding individuals who failed to pay their taxes on time with waived penalties and interest.
Creates an unfair system for law-abiding citizens and responsible business owners who paid their taxes on time and received no such financial breaks.
Restoring driver's licenses and waiving penalties removes strong deterrents against tax evasion, potentially encouraging people to delay payments in the future.

Votes

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Full Bill Text

2 versions

Changes to existing Rhode Island law · 10 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 seventy- five (75) day 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.