R.I. Gen. Laws § 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.