AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES (Permits every municipality in the state to offer a homestead tax exemption of up to 20% of assessed value on residential properties, and also provides that municipalities that grant greater exemptions not be limited by this section.)

S2259

2026 -- S 2259
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LC004476
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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 Pearson, Gallo, DiPalma, and Thompson

Date Introduced:
January 23, 2026

Referred To:
Senate Housing & Municipal Government
It is enacted by the General Assembly as follows:
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SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local
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Taxes" is hereby amended by adding thereto the following section:
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44-5-91. Homestead exemption.

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(a) Notwithstanding any other provision in this chapter to the contrary, any municipality,
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by ordinance, duly enacted, is authorized to annually fix the amount, if any, of a homestead
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exemption with respect to assessed value from local taxation on taxable real property used for
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residential purposes and to grant homestead exemptions to the owner or owners of residential real
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estate in an amount not to exceed twenty percent (20%) of the assessed value. The exemption only
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applies to property used exclusively for residential purposes, and improved with a dwelling
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containing less than four (4) units. In order to determine compliance with the homestead exemption
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as outlined in this section, the municipality shall provide, by ordinance, rules and regulations
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governing eligibility for the exemption established by this section.
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(b) In the event property granted an exemption under this section is sold or transferred
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during the year for which the exemption is claimed, the municipality, upon approval of its city or
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town council, may provide for a proration of the homestead exemption in cases where title to
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property passes from those not entitled to claim an exemption to those who are entitled to claim an
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exemption.
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(c) Notwithstanding the provisions of subsection (a) of this section, any municipality that,
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prior to the enactment of this section, has granted its residents a homestead exemption at a different

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or higher rate, shall be exempt from the limitations imposed in that subsection.
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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 permit every municipality in the state to offer a homestead tax exemption
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of up to twenty percent (20%) of assessed value on residential properties, and would also provide
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that municipalities that grant greater exemptions would not be limited by this section.
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This act would take effect upon passage.
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LC004476 - Page 3 of 3