2025 -- S 1141 | |
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LC003031 | |
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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 | |
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Introduced By: Senators Bell, Thompson, and Quezada | |
Date Introduced: June 06, 2025 | |
Referred To: Senate Housing & Municipal Government | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 44-5-13.11 of the General Laws in Chapter 44-5 entitled "Levy and |
2 | Assessment of Local Taxes" is hereby amended to read as follows: |
3 | 44-5-13.11. Qualifying low-income housing — Assessment and taxation. |
4 | (a) Any residential property qualifying low-income housing that has been issued an |
5 | occupancy permit on or after January 1, 1995, after substantial rehabilitation as defined by the U.S. |
6 | Department of Housing and Urban Development and is encumbered by a covenant recorded in the |
7 | land records in favor of a governmental unit or the Rhode Island housing and mortgage finance |
8 | corporation restricting either or both the rents that may be charged to tenants of the property or and |
9 | the incomes of the occupants of the property, is subject to a tax that equals eight percent (8%) of |
10 | the property’s previous years’ gross scheduled rental income or a lesser percentage as determined |
11 | by each municipality. |
12 | (b) For the purposes of this section, “qualifying low-income housing” shall mean: |
13 | (1) A low income unit, as defined in 26 USC § 42(i)(3) on January 1, 2025, in a qualified |
14 | low-income housing project, as defined in 26 USC § 42(g) on January 1, 2025; or |
15 | (2) Affordable housing, as defined in § 42-128-8.1(d)(1) on January 1, 2025, approved for |
16 | tax treatment under this section as of December 31, 2024. |
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1 | 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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1 | This act would clarify the tax treatment of qualifying low-income housing. It would require |
2 | that future housing units receiving this tax treatment meet the federal definitions of a low-income |
3 | unit in a qualified low-income housing project, but it would allow any unit meeting the state |
4 | definition of affordable housing to continue to receive this tax treatment if it was approved as of |
5 | December 31, 2024. |
6 | This act would take effect upon passage. |
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