Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 55 - Personal Income Tax
Part 8 - Lottery and Pari-Mutuel Winnings and Prizes (280-RICR-20-55-8)
Section 280-RICR-20-55-8.6 - Effective Date Explained

Universal Citation: 280 RI Code of Rules 20 55 8.6

Current through September 18, 2024

A. The taxability of Rhode Island Lottery winnings and prizes and the withholding requirements applied to the Rhode Island Lottery and to pari-mutuel betting licensees in Rhode Island are applied according to the date on which the winnings and prizes are received after the effective date above.

B. Winnings and prizes received means amounts received by the taxpayer on or after July 1, 1989 regardless of the date of the Lottery drawing, the date of the winner determination or the date of the pari-mutuel betting event and regardless of whether the prize or winnings are paid to the winner in installments over a period of time by the Director of Lotteries, pari-mutuel betting licensee or by a third party annuity or other contractual payor.

C. Examples

1. George found a winning Rhode Island Lottery ticket he'd forgotten. Although the drawing was held eight (8) months earlier, George claimed his prize on July 15, 1989. For George's Rhode Island income tax purposes, his winnings are taxable as part of his 1989 Rhode Island income. Depending on the amount of his winnings, Rhode Island withholding may be deducted by the Lottery prior to his receipt.

2. Joan won the Rhode Island Lottery in 1987 and is receiving her winnings in a check each August over a ten year period. Beginning with the August 1989 check, Joan's winnings are taxable as part of her Rhode Island income. Depending on the amount of her winnings, Rhode Island withholding may be deducted by the Lottery or its third-party payor, prior to receipt.

3. David bet, won and received his winnings at the Rhode Island Lottery in a single check in February 1989. Because he received his winnings before July 1, 1989, they are exempt from Rhode Island personal income tax and regardless of the amount, no Rhode Island withholding was deducted by the Lottery.

4. Denise won and received a large sum from a Rhode Island casino in August 1989. Her winnings are part of her Rhode Island income (they were never exempted); however, since she received her winnings after July 1, 1989, and depending on the amount of her winnings, Rhode Island withholding may be deducted by the payor prior to receipt.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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