AN ACT RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES (Authorizes the town of Bristol to apply the owner-occupied tax rate for mixed-used properties where the residential portion is owner-occupied.)

S2040

2026 -- S 2040
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LC003488
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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:
Senators Ujifusa, Felag, and Lauria

Date Introduced:
January 09, 2026

Referred To:
Senate Housing & Municipal Government
It is enacted by the General Assembly as follows:
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SECTION 1. Section 44-5-11.8 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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44-5-11.8. Tax classification.
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(a) Upon the completion of any comprehensive revaluation or any update, in accordance
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with § 44-5-11.6, any city or town may adopt a tax classification plan, by ordinance, with the
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following limitations:
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(1) The designated classes of property shall be limited to the classes as defined in
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subsection (b) of this section.
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(2) The effective tax rate applicable to any class, excluding class 4, shall not exceed by
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fifty percent (50%) the rate applicable to any other class, except in the city of Providence and the
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town of Glocester and the town of East Greenwich
and the town of Bristol
; however, in the year
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following a revaluation or statistical revaluation or update, the city or town council of any
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municipality may, by ordinance, adopt tax rates for the property class for all ratable tangible
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personal property no greater than twice the rate applicable to any other class, provided that the
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municipality documents to, and receives written approval from, the office of municipal affairs that
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the rate difference is necessary to ensure that the estimated tax levy on the property class for all
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ratable tangible personal property is not reduced from the prior year as a result of the revaluation
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or statistical revaluation.
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(3) Any tax rate changes from one year to the next shall be applied such that the same

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percentage rate change is applicable to all classes, excluding class 4, except in the city of
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Providence and the town of Glocester and the town of East Greenwich.
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(4) Notwithstanding subsections (a)(2) and (a)(3) of this section, the tax rates applicable to
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wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are
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governed by § 44-3-29.1.
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(5) The tax rates applicable to motor vehicles within Class 4, as defined in subsection (b)
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of this section, are governed by § 44-34.1-1 [repealed].
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(6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure
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apply to the reporting of, and compliance with, these classification restrictions.
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(b)
Classes of property.
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(1) Class 1: Residential real estate consisting of no more than five (5) dwelling units; land
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classified as open space; and dwellings on leased land including mobile homes. In the city of
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Providence, this class may also include residential properties containing partial commercial or
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business uses and residential real estate of more than five (5) dwelling units.
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(i) A homestead exemption provision is also authorized within this class; provided
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however, that the actual, effective rate applicable to property qualifying for this exemption shall be
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construed as the standard rate for this class against which the maximum rate applicable to another
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class shall be determined, except in the town of Glocester and the city of Providence.
In the town
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of Bristol, this class may also include residential properties containing partial commercial or
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business uses where the residential portion is owner-occupied.
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(ii) In lieu of a homestead exemption, any city or town may divide this class into non-
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owner and owner-occupied property and adopt separate tax rates in compliance with the within tax
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rate restrictions; provided, however, that the owner-occupied rate shall be construed as the standard
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rate for this class against which the maximum rate applicable to another class shall be determined,
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except in the town of Glocester and the city of Providence.
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(2) Class 2: Commercial and industrial real estate; residential properties containing partial
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commercial or business uses; and residential real estate of more than five (5) dwelling units. In the
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city of Providence, properties containing partial commercial or business uses and residential real
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estate of more than five (5) dwelling units may be included in Class 1.
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(3) Class 3: All ratable, tangible personal property.
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(4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of
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this title.
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(c) The town council of the town of Glocester and the town council of the town of East
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Greenwich may, by ordinance, provide for, and adopt, a tax rate on various classes as they shall

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deem appropriate. Provided, that the tax rate for Class 2 shall not be more than two (2) times the
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tax rate of Class 1 and the tax rate applicable to Class 3 shall not exceed the tax rate of Class 1 by
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more than two hundred percent (200%). Glocester shall be able to establish homestead exemptions
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up to fifty percent (50%) of value and the calculation provided in subsection (b)(1)(i) shall not be
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used in setting the differential tax rates.
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(d) Notwithstanding the provisions of subsection (a) of this section, the town council of the
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town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with
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the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or
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after the assessment date of December 31, 2002.
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(e) Notwithstanding the provisions of subsection (a) of this section, the town council of the
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town of Little Compton may hereafter, by ordinance, adopt a tax classification plan in accordance
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with the provisions of subsections (a) and (b) of this section and the provisions of § 44-5-79, to be
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applicable to taxes assessed on or after the assessment date of December 31, 2004.
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(f) Notwithstanding the provisions of subsection (a) of this section, the town council of the
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town of Scituate may hereafter, by ordinance, change its tax assessment from fifty percent (50%)
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of value to one hundred percent (100%) of value on residential and commercial/industrial/mixed-
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use property, while tangible property is assessed at one hundred percent (100%) of cost, less
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depreciation; provided, however, the tax rate for Class 3 (tangible) property shall not exceed the
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tax rate for Class 1 (residential) property by more than two hundred thirteen percent (213%). This
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provision shall apply whether or not the fiscal year is also a revaluation year.
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(g) Notwithstanding the provisions of subsections (a) and (b) of this section, the town
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council of the town of Coventry may hereafter, by ordinance, adopt a tax classification plan
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providing that Class 1, as set forth in subsection (b) “Classes of Property” of this section, may also
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include residential properties containing commercial or business uses, such ordinance to be
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applicable to taxes assessed on or after the assessment date of December 31, 2014.
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(h) Notwithstanding the provisions of subsection (a) of this section, the town council of the
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town of East Greenwich may hereafter, by ordinance, adopt a tax classification plan in accordance
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with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on
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or after the assessment date of December 31, 2018. Further, the East Greenwich town council may
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adopt, repeal, or modify that tax classification plan for any tax year thereafter, notwithstanding the
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provisions of subsection (a) of this section.
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(i) Notwithstanding the provisions of subsection (a) of this section, the town council of the
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town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with
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the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or

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after the assessment date of December 31, 2022. If, in lieu of a homestead exemption, the town of
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Middletown adopts a tax classification plan that divides the class consisting of residential real estate
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into non-owner and owner-occupied property and adopts separate tax rates in compliance with the
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tax rate restrictions, the town of Middletown, by ordinance or resolution, shall provide rules and
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regulations including, but not limited to, those governing the division and definition of non-owner
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and owner-occupied properties.
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(j) Notwithstanding the provisions of subsection (a) of this section, the town council of the
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town of New Shoreham may hereafter, by ordinance, adopt a tax classification plan in accordance
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with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on
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or after the assessment date of December 31, 2023. If, in lieu of a homestead exemption, the town
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of New Shoreham adopts a tax classification plan which divides the class consisting of residential
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real estate into non-owner and owner-occupied property and adopts separate tax rates in compliance
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with the tax rate restrictions, the town of New Shoreham, by ordinance or resolution, shall provide
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rules and regulations including, but not limited to, those governing the division and definition of
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non-owner and owner-occupied properties.
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(k) Notwithstanding the provisions of subsection (a) of this section, the town council of the
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town of Bristol may hereafter, by ordinance, adopt a tax classification plan in accordance with the
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provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or after
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the assessment date of December 31, 2023. Further, the Bristol town council may adopt, repeal, or
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modify that tax classification plan for any tax year thereafter, notwithstanding the provisions of
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subsection (a) of this section.
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(l) The city council of the city of Providence may, by ordinance, provide for, and adopt, a
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tax rate on various classes as they shall deem appropriate. Provided, that the provisions of § 44-5-
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11.18(4) shall apply.
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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 authorize the town of Bristol to apply the owner-occupied tax rate for
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mixed-used properties where the residential portion is owner-occupied.
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This act would take effect upon passage.
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