AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES -- TAX DEFERRAL PROGRAM (Establishes a property tax deferral program for senior citizens, disabled persons or veterans.)

S2808

2026 -- S 2808
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LC005490
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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 -- TAX
DEFERRAL PROGRAM

Introduced By:
Senators E Morgan, Felag, Rogers, Urso, Thompson, Paolino, Ciccone,
and Burke

Date Introduced:
March 04, 2026

Referred To:
Senate Finance
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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44-5-20.13.2. Statewide deferment of payment of tax for qualified senior citizens,
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disabled citizens and disabled veterans.

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(a) The payment of property taxes on a single-family dwelling, including manufactured
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homes, owned and occupied by a senior citizen, disabled citizen or disabled veteran may be
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deferred until the property is disposed by reason of death of all qualified owners, or by reason of
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transfer or conveyance; provided however, that any taxes so deferred shall constitute a lien against
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the real estate. Interest, in an amount of six percent (6%) annually, shall accrue during said deferral
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period and shall be added to the final tax bill. The city or town shall file a written notice of the lien
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in its land evidence records.
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(b) For the purposes of this section the following definitions shall apply:
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(1) “Senior citizen” means any resident who is sixty-two (62) years of age or older.
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(2) “Disabled citizen” means a resident who has been determined to be totally disabled by
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the United States Social Security Administration.
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(3) “Disabled veteran” means a resident who is a veteran, and has been determined to be
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totally disabled by the United States Veterans Administration.
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(c)(1) Single-family dwellings including manufactured homes, with reverse mortgages,

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shall not be eligible for the deferment of property taxes.
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(2) Single-family dwellings including manufactured homes with less than twenty percent
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(20%) equity in the home shall not be eligible for this deferment of property taxes.
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(d) The State of Rhode Island general treasurer's office shall have authority to establish the
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requirements, and application and/or verification procedures for municipalities to avail themselves
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of the benefit of the deferment provided in this section.
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(e) If, following the granting of a deferral, a tax assessor determines that an owner who
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applied and was granted a deferral of property taxes did not file the claim in good faith, the owner
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shall be assessed a delinquency penalty for the nonpayment of the deferred taxes.
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(f) The tax collector of each city or town shall certify to the director of finance on or before
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the end of business on January 31, the total amount of supplemental roll property tax deferral claims
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submitted pursuant to this section.
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(g) This section does not apply to property taxes paid through escrow accounts.
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(h) For the fiscal year 2027 and thereafter, the State of Rhode Island shall appropriate two
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million dollars ($2,000,000) for the purpose of funding the deferments provided in this section.
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(i) The funds appropriated under this section shall be administered by the office of the
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general treasurer.
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SECTION 2. This act shall take effect upon passage.
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LC005490
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LC005490 - Page 2 of 3
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES -- TAX
DEFERRAL PROGRAM
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This act would establish a property tax deferral program for senior citizens, disabled
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persons or veterans.
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This act would take effect upon passage.
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LC005490
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LC005490 - Page 3 of 3