AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES (Changes the assessment for residential property where forty percent (40%) of the dwellings are below eighty percent (80%) of statewide median income and thirty percent (30%) are below sixty percent (60%).)

H8017

2026 -- H 8017
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LC004889
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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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:
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SECTION 1. Section 44-5-13.11 of the General Laws in Chapter 44-5 entitled "Levy and
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Assessment of Local Taxes" is hereby amended to read as follows:
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44-5-13.11. Qualifying low-income housing — Assessment and taxation.
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(a)
Any residential property that has been issued an occupancy permit on or after January
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1, 1995,
after substantial rehabilitation as defined by the U.S. Department of Housing and Urban
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Development
and is encumbered by a covenant recorded in the land records in favor of a
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governmental unit or Rhode Island housing and mortgage finance corporation restricting
either or
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both the rents that may be charged to tenants of the property or
the incomes of the occupants
of the
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property, is subject to a tax that equals eight percent (8%) of the property’s previous years’ gross
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scheduled rental income or a lesser percentage as determined by each municipality
.
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(1) At least forty percent (40%) of the rental dwelling units in the property to levels
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affordable to households at or below eighty percent (80%) statewide area median income, adjusted
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for family size, as established by § 45-53-3, are subject to a tax that equals eight percent (8%) of
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the property’s previous year's gross scheduled rental income or a lesser percentage as determined
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by each municipality; or
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(2) At least thirty percent (30%) of the rental dwelling units in the property to levels
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affordable to households at or below sixty percent (60%) statewide area median income, adjusted
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for family size, as established by § 45-53-3, are subject to a tax that equals eight percent (8%) of
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the property’s previous year's gross scheduled rental income or a lesser percentage as determined

1
by each municipality.
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(b) For those properties that have been approved by the tax assessor for tax treatment under
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this section as of July 1, 2026, the manner in which the tax assessor has previously applied this
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section shall not be further extended.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
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This act would change the assessment for residential property where forty percent (40%)
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of the dwellings are below eighty percent (80%) of statewide median income and thirty percent
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(30%) are below sixty percent (60%).
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This act would take effect upon passage.
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LC004889
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LC004889 - Page 3 of 3