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Rhode Island Reintroduces Bill to Exempt Small Bitcoin Payments From State Taxes

The proposal creates capped thresholds with a one-year pilot pending legislative approval.

Overview

  • Senator Peter A. Appollonio introduced Senate Bill S2021 on January 9, and the measure was referred to the Senate Finance Committee.
  • The exemption would cover Bitcoin sales or exchanges up to $5,000 per month, capped at $20,000 per year.
  • Eligibility would extend to Rhode Island residents and to businesses based and operating primarily in the state.
  • If enacted, the pilot would run from January 1, 2027, through January 1, 2028, with continuation subject to review and possible legislative extension.
  • Taxpayers could self-certify on their state returns while keeping reasonable records, and the Department of Business Regulation would issue valuation and recordkeeping guidance using publicly available Bitcoin price indices.