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S 2451Administration & Compliance

Taxation - Estate and Transfer Taxes - Enforcement and Collection

This bill removes a $50 filing fee for certain estates and simplifies the process to release property tax liens locally.

Held for study
Population
Affected
15
Email Legislator
Introduced Feb 6, 2026Committee Senate Finance

Plain-English Summary

This legislation amends Rhode Island's estate tax laws to simplify the process for estates that do not owe state or federal estate taxes. It allows executors, administrators, or heirs to file a sworn statement with the deceased person's local municipality confirming the estate's value is below the tax threshold. Upon recording this statement, the Division of Taxation will discharge the automatic estate tax lien on the property. Additionally, the bill eliminates the $50 filing fee for statements regarding estates of individuals who pass away on or after January 1, 2025.

For younger readers

When someone passes away, the people taking care of their belongings usually have to fill out forms for the government. Sometimes, the government puts a temporary hold, called a lien, on the person's house to make sure taxes are paid. This new rule says that if the person didn't have enough money to owe big taxes, their family can tell their local town hall instead of the big state office. This helps clear the hold on the house faster. Also, for people who pass away after 2025, it will be free to file these forms instead of costing $50.

Who & Where It Applies

Impacted groups
Executors and AdministratorsHeirs-at-lawTrusteesMunicipal ClerksReal Estate Attorneys
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Eliminates the $50 filing fee for estates after 2025, providing financial relief to lower-income families dealing with the death of a loved one.
  • Simplifies the bureaucratic process for clearing titles on real estate, helping working-class families inherit and manage property assets more efficiently.
  • Decentralizes the filing process to local municipalities, potentially making government services more accessible to residents without the need to navigate the state tax division.
  • Eliminates a source of revenue (the $50 fee) that was previously allocated to the tax administrator for the enforcement and collection of taxes.
  • Relies on self-reported "sworn statements" regarding estate values, which could potentially allow wealthier estates to temporarily evade scrutiny or proper tax assessment.
  • Increases the administrative workload on local municipal clerks to process these filings without explicitly providing additional funding or resources to the towns.
For Conservatives
  • Removes a government fee ($50), reducing the financial burden on citizens and allowing families to keep more of their inheritance.
  • Streamlines the removal of government liens on private property, upholding property rights and facilitating easier real estate transfers.
  • Reduces the necessity of interacting with the central state taxation bureaucracy for smaller, non-taxable estates.
  • Mandates a filing requirement with local municipalities, maintaining a level of bureaucratic involvement in private family matters.
  • Shifts administrative work to local towns, which could theoretically lead to pressure for higher local property taxes to cover staff time.
  • Continues the requirement of filing sworn statements to prove innocence of tax liability, rather than assuming no liability until proven otherwise.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 19 additions · 2 deletions

SECTION 1. Sections 44-23-1 and 44-23-2 of the General Laws in Chapter 44-23 entitled "Estate and Transfer Taxes — Enforcement and Collection" are hereby amended to read as follows: 44-23-1. Statements filed by executors, administrators, and heirs-at-law Statements filed by executors, administrators, and heirs-at-law or persons in possession of real property. (a)(1) Every executor, administrator, and heir-at-law or persons in possession of real property, within nine (9) months after the death of the decedent, shall file with the tax administrator a statement under oath showing the full and fair cash value of the estate; the amounts paid out from the estate for claims, expenses, charges, and fees; and the statement shall also provide the names and addresses of all persons entitled to take any share or interest of the estate as legatees or distributees of the estate.

(2) In estates where applicable, an executor, administrator, heir-at-law or persons in possession of real property, within nine (9) months after the death of the decedent, shall file, for recording, with the municipality of the decedent’s residence, a statement under oath, stating that the value of the decedent’s gross estate does not require a state or federal estate tax filing. Upon the recording of the statement by the municipality, the division of taxation shall issue a discharge of the estate tax lien.

(b) For estates of decedents with a date of death prior to January 1, 2025, a fee of fifty dollars ($50.00) shall be paid when filing any statement required by this section. All fees received under this section are allocated to the tax administrator for enforcement and collection of taxes.

(c) For estates of decedents with a date of death on or after January 1, 2025, no fee shall be paid when filing any statement required by this section. 44-23-2. Statements filed by trustees. Whenever any person during his or her life appoints a trustee, naming that person or others as beneficiaries, and providing for the administration of the trust after his or her death, or providing for a termination of the trust and a distribution of the trust estate or any part of the trust estate at his or her death, any person acting as the trustee or any trustee of property subject to a power of appointment, shall, within thirty (30) days after the death of the creator of the trust, or within thirty

(30) days after the death of the donee of the power file with the tax administrator a sworn statement showing:

(1) The trust agreement, if any;

(2) The full and fair cash value of the trust estate;

(3) The extent of the duration of the trust;

(4) The manner provided for its termination;

(5) The names and addresses of the beneficiaries of the trust; and

(6) Any other information relating to the trust, which the tax administrator may deem necessary for the proper assessment of the tax on the estate; and

(7) Notwithstanding the requirements set forth in this section, the trustee, where applicable, within nine (9) months after the death of the decedent, shall file, for recording, with the municipality of the decedent’s residence, a statement under oath, stating that the value of the decedent’s gross estate does not require a state or federal estate tax filing. Upon the recording of the statement by the municipality, the division of taxation shall issue a discharge of the estate tax lien.

SECTION 2. This act shall take effect upon passage.