2025 -- H 5697

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LC001965

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Representatives J. Brien, Phillips, and Casey

     Date Introduced: February 26, 2025

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-5-13.11 of the General Laws in Chapter 44-5 entitled "Levy and

Assessment of Local Taxes" is hereby amended to read as follows:

     44-5-13.11. Qualifying low-income housing — Assessment and taxation.

     (a) Any residential property that has been issued an occupancy permit on or after January

1, 1995, after substantial rehabilitation as defined by the U.S. Department of Housing and Urban

Development and is encumbered by a covenant recorded in the land records in favor of a

governmental unit or Rhode Island housing and mortgage finance corporation restricting either or

both the rents that may be charged to tenants of the property or the incomes of the occupants of the

property, is subject to a tax that equals eight percent (8%) of the property’s previous years’ gross

scheduled rental income or a lesser percentage as determined by each municipality.

     (b) Any city or town whose low- or moderate-income housing units exceeds the ten percent

(10%) threshold outlined under chapter 53 of title 45 ("low and moderate income housing") shall

be exempt from the provisions of subsection (a) of this section for any and all properties that have

been issued an occupancy permit after December 31, 2024; provided, further, that any local city or

town council may, by passage of a resolution, elect not to be exempted under the provisions of

subsection (a) of this section.

     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 exempt certain cities and towns whose communities exceed the low-and

moderate-income housing threshold from the tax of the previous year's gross scheduled rental

income.

     This act would take effect upon passage.

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