Bill > S0723

This bill amends the existing tax assessment rules for qualifying low-income housing properties in Rhode Island by introducing a new exemption for cities and towns that have achieved a significant threshold of low- and moderate-income housing units. Currently, residential properties that have been substantially rehabilitated and have occupancy permits issued after January 1, 1995, are taxed at 8% of their previous year's gross scheduled rental income. Under the proposed legislation, any municipality that has low- and moderate-income housing units exceeding 10% of its total housing stock will be exempt from this tax for properties with occupancy permits issued after December 31, 2024. Importantly, the bill includes a provision allowing local city or town councils to opt out of this exemption by passing a resolution. The term "low- and moderate-income housing" refers to residential units designated for households with incomes below a certain threshold, typically to provide affordable housing options. This bill aims to incentivize the development of affordable housing by offering a tax benefit to municipalities that successfully increase their low-income housing stock. The legislation would take effect immediately upon its passage.

Housing and Urban Affairs

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