2026 -- H 7567

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LC004647

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES -- TAX

DEFERRAL PROGRAM

     Introduced By: Representatives Cotter, Chippendale, Speakman, Spears, Santucci,
Casimiro, Kazarian, Caldwell, Kislak, and Read

     Date Introduced: February 06, 2026

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

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

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

     44-5-20.13.2. Statewide deferment of payment of tax for qualified senior citizens,

disabled citizens and disabled veterans.

     (a) The payment of property taxes on a single-family dwelling, including manufactured

homes, owned and occupied by a senior citizen, disabled citizen or disabled veteran may be

deferred until the property is disposed by reason of death of all qualified owners, or by reason of

transfer or conveyance; provided however, that any taxes so deferred shall constitute a lien against

the real estate. Interest, in an amount of six percent (6%) annually, shall accrue during said deferral

period and shall be added to the final tax bill. The city or town shall file a written notice of the lien

in its land evidence records.

     (b) For the purposes of this section the following definitions shall apply:

     (1) “Senior citizen” means any resident who is sixty-two (62) years of age or older.

     (2) “Disabled citizen” means a resident who has been determined to be totally disabled by

the United States Social Security Administration.

     (3) “Disabled veteran” means a resident who is a veteran, and has been determined to be

totally disabled by the United States Veterans Administration.

     (c)(1) Single-family dwellings including manufactured homes, with reverse mortgages,

shall not be eligible for the deferment of property taxes.

     (2) Single-family dwellings including manufactured homes with less than twenty percent

(20%) equity in the home shall not be eligible for this deferment of property taxes.

     (d) The State of Rhode Island general treasurer's office shall have authority to establish the

requirements, and application and/or verification procedures for municipalities to avail themselves

of the benefit of the deferment provided in this section.

     (e) If, following the granting of a deferral, a tax assessor determines that an owner who

applied and was granted a deferral of property taxes did not file the claim in good faith, the owner

shall be assessed a delinquency penalty for the nonpayment of the deferred taxes.

     (f) The tax collector of each city or town shall certify to the director of finance on or before

the end of business on January 31, the total amount of supplemental roll property tax deferral claims

submitted pursuant to this section.

     (g) This section does not apply to property taxes paid through escrow accounts.

     (h) For the fiscal year 2027 and thereafter, the State of Rhode Island shall appropriate two

million dollars ($2,000,000) for the purpose of funding the deferments provided in this section.

     (i) The funds appropriated under this section shall be administered by the office of the

general treasurer.

     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 -- TAX

DEFERRAL PROGRAM

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     This act would establish a property tax deferral program for senior citizens, disabled

persons or veterans.

     This act would take effect upon passage.

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