TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES, the official text

H8017 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: 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 that has been issued an occupancy permit on or after January 5 1, 1995, after substantial rehabilitation as defined by the U.S. Department of Housing and Urban 6 Development and is encumbered by a covenant recorded in the land records in favor of a 7 governmental unit or Rhode Island housing and mortgage finance corporation restricting either or 8 both the rents that may be charged to tenants of the property or the incomes of the occupants of the 9 property, is subject to a tax that equals eight percent (8%) of the property’s previous years’ gross 10 scheduled rental income or a lesser percentage as determined by each municipality . 11 (1) At least forty percent (40%) of the rental dwelling units in the property to levels 12 affordable to households at or below eighty percent (80%) statewide area median income, adjusted 13 for family size, as established by § 45-53-3, are subject to a tax that equals eight percent (8%) of 14 the property’s previous year s gross scheduled rental income or a lesser percentage as determined 15 by each municipality; or 16 (2) At least thirty percent (30%) of the rental dwelling units in the property to levels 17 affordable to households at or below sixty percent (60%) statewide area median income, adjusted 18 for family size, as established by § 45-53-3, are subject to a tax that equals eight percent (8%) of 19 the property’s previous year s gross scheduled rental income or a lesser percentage as determined 1 by each municipality. 2 (b) For those properties that have been approved by the tax assessor for tax treatment under 3 this section as of July 1, 2026, the manner in which the tax assessor has previously applied this 4 section shall not be further extended. 5 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 *** 1 This act would change the assessment for residential property where forty percent (40%) 2 of the dwellings are below eighty percent (80%) of statewide median income and thirty percent 3 (30%) are below sixty percent (60%). 4 This act would take effect upon passage. ======== LC004889 ======== LC004889 - Page 3 of 3