Bill > H5534

This bill provides comprehensive tax exemptions and benefits for urban and small farmers in Rhode Island, designed to support and encourage agricultural activities in urban and small-scale farming settings. The bill defines key terms such as "urban farmer," "urban farmland," "small farmer," and "small farmland," and provides tax exemptions across multiple areas including property taxes, income taxes, and sales taxes. Urban farmers are defined as principal operators of agricultural operations in urban areas (cities or areas with over 3,000 residents per square mile), while small farmers are those operating fewer than five acres of land. The exemptions cover various aspects of farming, including real estate, personal property, farm equipment, and farm products. Importantly, the bill includes provisions for a land use change tax, which allows municipalities to assess additional taxes if the farmland is converted to non-agricultural use within 15 years of classification. The bill aims to promote agricultural enterprise, support local food production, and provide economic incentives for urban and small-scale farming by reducing financial barriers. The tax exemptions will take effect on July 1, 2026, giving farmers and local governments time to prepare for the new regulations.

Budget and Finance

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