Rhode Island § 44-14-3 - Taxation of Banks
Full text of Rhode Island Rhode Island General Laws § 44-14-3 — Taxation of Banks, with citation guidance and answers to common questions.
§ 44-14-3. Taxation of Banks
R.I. Gen. Laws § 44-14-3
§ 44-14-3. Tax on state banks.
(a) Each banking institution organized or incorporated under the laws of this state or having its principal place of business or a branch located within the limits of this state shall annually pay a tax or excise to the state for the privilege of existing as a banking institution during any part of the taxable year. The tax is measured by:
(1) Net income, as defined in § 44-14-10, for the income period and is computed at the rate of nine percent (9%) of the net income; or
(2) Authorized capital stock as of the last day of the income period and is computed at the rate of two dollars fifty cents ($2.50) for each ten thousand dollars ($10,000), or fractional part, of an authorized capital stock; whichever measure yields the greater amount of tax.
(b) In the case of a banking institution not organized or incorporated under the laws of this state, but having its principal place of business or branch located within the limits of this state, its net income is apportioned to this state under rules and regulations promulgated by the tax administrator.
(c)(1) A banking institution having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., (including a banking institution that is a qualified subchapter S subsidiary, as defined by 26 U.S.C. § 1361, of a corporation or banking institution having an election in effect under 26 U.S.C. § 1361 et seq.) is not subject to the Rhode Island tax or excise on banking institutions, except that the banking institution shall be subject to the provisions of subdivision (a)(1) of this section to the extent the income is subjected to federal tax under subchapter S.
(2) The shareholders of the banking institution who are residents of Rhode Island shall include in their income their proportionate share of the banking institution’s federal taxable income.
(3) If any shareholder of the banking institution is a nonresident during any part of the banking institution’s taxable year, he or she shall file a Rhode Island personal income tax return in accordance with the rules and regulations as promulgated by the tax administrator.
History of Section.
P.L. 1942, ch. 1212, art. 7, § 3; P.L. 1943, ch. 1341, § 2; G.L. 1956, § 44-14-3;
P.L. 1958, ch. 17, art. 2, § 1; P.L. 1959, ch. 169, art. 1, § 1; P.L. 1960, ch. 66,
art. 1, § 1; P.L. 1968, ch. 263, art. 6, § 1; P.L. 1970, ch. 139, art. 1, § 2; P.L.
1989, ch. 253, § 1; P.L. 1995, ch. 370, art. 34, § 2; P.L. 1999, ch. 354, § 30; P.L.
2000, ch. 459, § 1.
Source: official Rhode Island text · Last verified 2026-08-27
Frequently Asked Questions About Rhode Island § 44-14-3
What does Rhode Island General Laws § 44-14-3 cover?
Section 44-14-3 ("Taxation of Banks") is part of the Rhode Island General Laws, the codified statutory law of Rhode Island. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Rhode Island § 44-14-3?
A common citation format is "Rhode Island General Laws § 44-14-3" (Rhode Island). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Rhode Island law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Rhode Island official source linked on this page or consult a licensed Rhode Island attorney.
How does Rhode Island § 44-14-3 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Rhode Island can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Rhode Island.