Bill > S0431

This bill provides tax exemptions and benefits for urban and small farmers in Rhode Island. Specifically, the bill defines urban and small farmers as individuals primarily engaged in agricultural operations on less than five acres of land, and creates several tax advantages for these farmers. Under the bill, urban and small farmers will be exempt from property taxes on their farmland and one building per lot (up to 2,500 square feet) used for agricultural activities like seed starting, storage, and product processing. The bill also provides exemptions from sales taxes for farm equipment, farm products, and related supplies. Moreover, if an urban or small farmer changes the land use within 15 years of receiving the tax exemption, they may be required to pay a sliding scale of additional taxes ranging from 10% to 1% of the land's fair market value, depending on how long they have maintained the agricultural classification. The definitions in the bill emphasize that these exemptions apply to agricultural operations using normal, recommended farming practices and focus on producing crops, livestock, dairy, and other agricultural products. The bill aims to support and encourage small-scale and urban farming by reducing the financial barriers to entry and operation.

Budget and Finance

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