2024 -- S 2369

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LC004253

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

     

     Introduced By: Senators Pearson, Gallo, DiPalma, Euer, Cano, Kallman, McKenney,
LaMountain, Tikoian, and Felag

     Date Introduced: February 12, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

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Taxes" is hereby amended by adding thereto the following section:

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     44-5-89. Homestead exemption.

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     (a) Notwithstanding any other provision in this chapter to the contrary, any municipality,

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by ordinance, duly enacted, is authorized to annually fix the amount, if any, of a homestead

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exemption with respect to assessed value from local taxation on taxable real property used for

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residential purposes and to grant homestead exemptions to the owner or owners of residential real

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estate in an amount not to exceed twenty percent (20%) of the assessed value. The exemption only

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applies to property used exclusively for residential purposes, and improved with a dwelling

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containing less than four (4) units. In order to determine compliance with the homestead exemption

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as outlined in this section, the municipality shall provide, by ordinance, rules and regulations

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governing eligibility for the exemption established by this section.

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     (b) In the event property granted an exemption under this section is sold or transferred

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during the year for which the exemption is claimed, the municipality, upon approval of its city or

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town council, may provide for a proration of the homestead exemption in cases where title to

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property passes from those not entitled to claim an exemption to those who are entitled to claim an

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exemption.

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     (c) Notwithstanding subsection (a) of this section, any municipality that, prior to the

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enactment of this section, has granted its residents a homestead exemption at a different or higher

 

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rate, shall be exempt from the limitations imposed in that subsection.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

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     This act would permit every municipality in the state to offer a homestead tax exemption

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of up to twenty percent (20%) of assessed value on residential properties, and would also provide

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that municipalities that grant greater exemptions would not be limited by this section.

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     This act would take effect upon passage.

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