Bill > H5793

This bill amends the Rhode Island General Laws to provide cities and towns with a new option to exceed their maximum tax levy when adding new housing units. Specifically, effective December 31, 2025, municipalities can levy taxes on new housing units beyond the standard 4% annual tax levy cap, subject to specific conditions. To qualify, a city or town must have issued over 10 certificates of occupancy for new housing units in a fiscal year, with at least 10% of the units designated as low or moderate-income housing. The new housing units must include various residential property types like single-family homes, multi-family dwellings, and converted buildings. This tax exemption would only apply for the fiscal year the certificate of occupancy is issued and two subsequent years, with the municipality required to phase these units into the standard maximum levy by the fourth fiscal year. The bill aims to incentivize housing development by providing municipalities with financial flexibility when adding new residential units to their tax base, while ensuring that the new units are integrated into the standard tax structure over time.

Housing and Urban Affairs, Justice

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