STATE HOUSE – A measure aimed at encouraging part-time residents to give to Rhode Island charities yesterday cleared the General Assembly and headed for the governor’s desk.
The measure, sponsored by House Majority Leader Gordon D. Fox and Senate Majority Leader M. Teresa Paiva Weed, had cleared the state Senate on Feb. 27. Yesterday, it was approved unanimously by the House.
“This is a win-win-win situation,” said Fox, D-Providence. “It’s great for charities, many of which have major donors who are part-time Rhode Islanders. It’s good for donors because it protects them from being unfairly penalized and lets them give to any charity they’d like to support. And it’s terrific for the state, because it doesn’t cost us a cent and provides funding to many organizations that work to improve the quality of life for Rhode Island residents.”
The legislation would prevent the state from considering charitable donations when determining, for tax purposes, whether Rhode Island is someone’s primary state of residence.
The problem stems from a 2001 case in which a retired couple who also lived in Florida was sent a hefty bill for back taxes here; the couple won their case in part because, during the time in question, they had given more to their Florida church than to their Rhode Island church.
Since then, many accountants and tax advisers have discouraged part-time Rhode Islanders from giving to charities here, fearing such donations could be used against them in a tax dispute.
The measure was supported by organizations including the Rhode Island Foundation, United Way, the Jewish Federation of Rhode Island, Women & Infants Hospital and the Greater Providence Chamber of Commerce.
