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Can you summarize RIGL Title 44, Chapter 15?
Taxation > Tax on Bank Deposits Generally
Short Summary
These legal documents govern the taxation of bank deposits in Rhode Island. The tax is imposed on banking institutions and credit unions based on their total deposits. The tax rate is six and ninety-five one hundredths cents ($.0695) for banking institutions with total deposits exceeding one hundred fifty million dollars ($150,000,000), and six and one-quarter cents ($.0625) for banking institutions with total deposits of one hundred fifty million dollars ($150,000,000) or less. However, a percentage of deposits equal to the percentage of total assets invested in certain obligations of the United States and its authorities, commissions, or instrumentalities exempt from state taxation is excluded from taxation. From January 1, 1997, to December 31, 1997, the tax rates are reduced to three and forty-eight one hundredths cents ($.0348) and three and thirteen one hundredths cents ($.0313) respectively. Starting from January 1, 1998, the tax rate is zero for all deposits. Banking institutions and credit unions are required to file a return with the tax administrator by June 15 each year, along with payment of the tax imposed. The tax administrator examines the return and assesses any additional tax due. Any tax not paid when due accrues interest at the annual rate provided by 44-1-7. Additionally, banking institutions and credit unions must file a report with the tax administrator by January 15 following the close of the taxable year. Non-compliance with the tax payment obligations may result in the accrual of interest on unpaid taxes. Any banking institution or credit union aggrieved by the action of the tax administrator may apply for a hearing within thirty (30) days after the notice of the action is mailed. Failure to file a return or statement within the prescribed time may result in a fine not exceeding ten thousand dollars ($10,000). If a return is not filed within the prescribed time, a penalty of five percent (5%) is added to the tax, with an additional five percent (5%) for each additional thirty (30) days or fraction of the day during which the failure continues, not exceeding twenty-five percent (25%) in the aggregate. Taxpayers may file a claim for refund within two (2) years after the tax has been paid, and if the tax administrator determines that the tax has been overpaid, a refund with interest is provided. The tax administrator may prescribe rules and regulations for the administration and enforcement of this chapter. Appeals from administrative orders or decisions made pursuant to this chapter shall be to the sixth (6th) division district court. If any provision of this chapter or the application of this chapter to any banking institution or credit union or circumstance is held invalid, the remainder of this chapter and the application of the provisions to the other banking institutions or credit unions or circumstances shall not be affected. The collection of taxes and penalties may be enforced through a writ of execution, and in case of a false or fraudulent return, a penalty of fifty percent (50%) of the tax amount is added. The tax administrator has the authority to examine books, papers, records, or memoranda related to tax returns and can require individuals to appear and testify under oath. Credit unions with total deposits exceeding one hundred fifty million dollars ($150,000,000) are subject to an annual tax at a rate of six and ninety-five one hundredths cents ($.0695) on each one hundred dollars ($100) of the daily average of the deposits, while credit unions with total deposits of one hundred fifty million dollars ($150,000,000) or less are subject to a tax rate of six and one-quarter cents ($.0625) on each one hundred dollars ($100) of the daily average of deposits. Certain deposits made by credit unions are exempt from taxation. There is a credit against the tax payable by building and loan associations or savings and loan associations for any corporation franchise tax paid by them in the same year. Any person who delivers or discloses false or fraudulent information to the tax administrator or neglects to appear or produce books when summoned may be fined or imprisoned. The tax administrator may determine the tax from any available information if a banking institution or credit union fails to file a return. These documents do not mention any specific penalties or exemptions.
Whom does it apply to?
Banking institutions, credit unions
What does it govern?
Taxation of bank deposits in Rhode Island
What are exemptions?
Deposits made outside of Rhode Island, deposits made at international banking facilities
What are the Penalties?
Fine not exceeding ten thousand dollars ($10,000)
Jurisdiction
Rhode Island