Rhode Island General Laws Title 44. Taxation § 44-14-3. Tax on state banks

(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.

(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.