Rhode Island and Massachusetts Law Changes in 2020

As 2019 comes to an end, we are helping you get prepared for 2020 with some law changes that you will need to be aware of when the New Year starts. 

Rhode Island

The new law that affects you and your family will be the implementation of a penalty for RI residents who don’t have health insurance as of January 1, 2020 will pay a tax penalty. More specifically: “If you (or your dependents) do not have health coverage during the 2020 calendar year, a penalty will be assessed through the Rhode Island personal income tax return that you file in early 2021.”

The penalty will be 2.5 % of household income or $695 per adult and $347.50 for each child under the age of 18, whichever amount is higher. Even if the 2.5% of household income produces a higher number, “the maximum penalty can be no more than the cost of the total annual premium for an average bronze plan sold through HealthSource RI.”

Massachusetts

Distracted Driving

Massachusetts will be going hands-free which will ban drivers from using handheld electronic devices. Drivers will still be able to use navigation apps if it takes a single swipe to use a device mounted on the windshield, dashboard or center console.This law takes effect on February 23 so plan ahead to avoid fines. First offenses will cost $100, second offenses $250 and third and subsequent offenses $500 and auto insurance surcharges.

Income tax reduction

Massachusetts state income tax will reach 5%, twenty years after voters approved a ballot measure slashing the rate from what was then 5.85 percent. 

Minimum wage

The Massachusetts minimum wage will increase to $12.75 an hour as it moves to a target of $15 an hour in 2023. Tipped workers’ wages will increase to $4.95 an hour. 

Vaping

On June 1, a law restricting the sale of flavored tobacco and vaping products will take effect.. Under the law, the number of flavored nicotine vaping products will be limited to smoking bars where they must be smoked on-site. There will also be a 75 percent excise tax on cigarettes.

As always, we will share any important changes with you as they happen. To have your questions about Rhode Island and Massachusetts laws concerning divorce, child support, utility law, personal injury and more answered, contact Keough + Sweeney.

We wish all of you a very Happy New Year!