2026 -- H 8017

========

LC004889

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

____________

A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Representatives Morales, Cruz, Potter, Tanzi, and Cotter

     Date Introduced: February 27, 2026

     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.

     (1) At least forty percent (40%) of the rental dwelling units in the property to levels

affordable to households at or below eighty percent (80%) statewide area median income, adjusted

for family size, as established by § 45-53-3, are subject to a tax that equals eight percent (8%) of

the property’s previous year's gross scheduled rental income or a lesser percentage as determined

by each municipality; or

     (2) At least thirty percent (30%) of the rental dwelling units in the property to levels

affordable to households at or below sixty percent (60%) statewide area median income, adjusted

for family size, as established by § 45-53-3, are subject to a tax that equals eight percent (8%) of

the property’s previous year's gross scheduled rental income or a lesser percentage as determined

by each municipality.

     (b) For those properties that have been approved by the tax assessor for tax treatment under

this section as of July 1, 2026, the manner in which the tax assessor has previously applied this

section shall not be further extended.

     SECTION 2. This act shall take effect upon passage.

========

LC004889

========

LC004889 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

***

     This act would change the assessment for residential property where forty percent (40%)

of the dwellings are below eighty percent (80%) of statewide median income and thirty percent

(30%) are below sixty percent (60%).

     This act would take effect upon passage.

========

LC004889

========

LC004889 - Page 3 of 3