R.I. Gen. Laws § 35-24-5: Exemption from taxation.

(a) The property of the trust and the earnings on the trust shall be exempt from all taxation by the state and all political subdivisions of the state. Distributions made pursuant to § 35-24-7 shall be considered income subject to taxation in accordance with chapter 30 of title 44 and shall be subject to federal and state withholdings.

(b) The tax administrator may adopt rules and regulations necessary to monitor, implement, and administer the Rhode Island personal income tax provisions referred to in subsection (a) of this section.