If you plan to sell mutual fund shares, stock or other such assets, how much tax will you have to pay to Rhode Island? That’s the issue a man from North Providence was driving at in a question to MoneyLine:

Q: I was wondering what the current status of the capital gains in Rhode Island is . . . . I think a lot of people would greatly appreciative to have [this information] to do their tax planning for the year. . . .

— J.C., North Providence

A: It’s a timely question. There was a lot of talk earlier this year about raising or otherwise changing Rhode Island’s capital gains tax rates. So now that the General Assembly session is over, what’s the status?

Rhode Island’s capital gains tax structure remains unchanged. The General Assembly and Governor Carcieri found other ways to balance the budget.

Thus, you can plan ahead with certainty, knowing that the tax situation is unchanged — and favorable to taxpayers.

If you sell certain assets that you’ve held for investment, what tax rate will you pay? It depends, in part, on how long you’ve held the asset, said Michael F. Canole, chief revenue agent for the Rhode Island Division of Taxation’s personal income-tax section.

When I met with Canole recently at the state tax agency’s headquarters in Providence, he summarized the current Rhode Island capital-gains tax rules:

•Short-Term: If you’ve held the asset for 12 months or less, the profit will be treated as ordinary income, like wages, and taxed at the usual Rhode Island income-tax rates, which range from 3.75 percent to 9.9 percent.

•Medium-Term: If you’ve held the asset for more than 12 months, but less than five years, your Rhode Island capital gains tax will be 5 percent if you’re a higher-income taxpayer, 2.5 percent if you’re a lower-income taxpayer.

•Long-Term: If you’ve held the asset for more than five years, your Rhode Island capital gains tax will be 1.67 percent if you’re a higher-income taxpayer, 0.83 percent if you’re a lower-income taxpayer (in other words, less than 1 percent).

By the way: In these examples, you’re a “lower-income taxpayer” if your Rhode Island taxable income normally falls within the state’s 3.75 percent bracket. That generally means you have $32,550 or less in Rhode Island taxable income if you’re single, or $54,400 or less in Rhode Island taxable income if you’re married and file a joint return.

Also, the summary above is for assets that you’ve held for investment, such as stock, mutual fund shares, or raw land. Other rules generally apply to profit from the sale of collectibles or of assets for which you may claim deductions for depreciation.)

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