Rhode Island - Repeal of state inheritance tax proposed

Rhode Island - Repeal of state inheritance tax proposed

Providence Business News
PBN.com

A Rhode Island lawmaker has introduced a bill to end the state s inheritance tax, saying the death tax is not just about money, but also puts financial pressure on individuals to sell off forest land, farms and coastal properties to developers.
The rationale for a Rhode Island inheritance tax is that it brings revenue into the state, and it is paid only by those who can most easily afford it.

The reality, said state Rep. Carol A. Mumford, R-Scituate, is that, because of legal estate planning techniques, it has little effect on the very rich and its burden falls most heavily on small business, small farms, owners of forest land and shoreline property who don t have the resources to employ some of those estate planning techniques. In Rhode Island its burden falls on the children of deceased parents whose estates are not that large.

Mumford s bill has been referred to the House Finance Committee. It is not Mumford s first attempt to repeal the inheritance tax, which she said is one of the least significant sources of revenue in our state budget, but hurts many people.
I believe today, as I have believed for years, that we need to repeal the inheritance tax as part of our state s continuing commitment to bring tax relief to all our citizens, she said. I believe its repeal will also play an important role in preserving farmland, forest land and land along our shoreline. On balance, the small amount of money the state generates from the inheritance tax is not worth the destruction of our natural resources.

Issue 20-41