Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0788

Introduced

3/23/23

Refer

3/23/23

Caption

Real Estate Conveyance Tax

Impact

The implementation of S0788 could significantly impact local tax structures by providing municipalities with a new revenue stream that is specifically earmarked for affordable housing projects. By allowing local governments to impose this additional conveyance tax, the bill could enhance local control over housing policy and strategies. However, the effectiveness of this measure will rely on the proper allocation and management of the funds to ensure they directly contribute to housing development and affordability. The bill aims to address the growing concern of housing shortages in Rhode Island, especially for low-income households.

Summary

Bill S0788 is aimed at amending the Real Estate Conveyance Tax laws in Rhode Island, specifically to allow municipalities the authority to impose an additional conveyance tax for properties sold above a certain threshold. The bill proposes that municipalities can set a tax rate of up to ten dollars for each $500 of consideration exceeding $800,000. This measure is intended to generate additional revenue for local municipalities in light of rising real estate prices and to address the pressing needs for affordable housing. The new provisions are designed to ensure that funds collected through this tax are used exclusively for affordable housing initiatives targeting individuals and families at or below 80% of the area median income.

Contention

One of the notable points of contention surrounding S0788 revolves around the balance of authority between state and local governments. While proponents argue that empowering municipalities helps tailor solutions to local housing crises, critics may express concerns over the fairness and efficiency of imposing additional taxes on high-value properties. Additionally, there may be debates on whether the restrictions imposed on the use of collected tax revenues could limit municipalities' flexibility in addressing broader community needs. The bill's passage may prompt discussions on best practices for managing new revenue streams effectively while maintaining support for the vibrancy of local economies.

Latest RI S0788 Activity

View All Events: RI 2023 Regular Session S0788

Companion Bills

No companion bills found.

Previously Filed As

RI S2759

Real Estate Conveyance Tax

RI S2361

Allows a municipality to set its own conveyance tax rate for residential properties sold in excess of $800,000.00 at $10 per $500. Provides collected taxes to be in a restricted account and distributed within 2 years for affordable housing.

RI H6257

Provides for an additional real estate conveyance tax for commercial properties sold in excess of one million five hundred thousand dollars ($1,500,000) at a rate of three dollars and thirteen cents ($3.13) for each five hundred dollars.

RI H6010

Allows the city of Providence to impose an additional conveyance tax of three quarters of one percent (0.75%) on sale of any real property in excess of one million dollars ($1,000,000).

RI S0037

Allows a municipality to set its own conveyance tax rate for residential properties sold in excess of $900,000.00 at $10 per $500. Provides collected taxes to be in a restricted account and distributed within 2 years for affordable housing.

RI H5756

RI H7683

Imposes a conveyance tax on purchasers, of single-family residential properties, who are for- profit entities with over $15,000,000 in assets, at a rate of $6.90/$500, to be collected for housing production fund established in § 42-128-2.1.

RI H7257

Increases conveyance tax for residential properties sold above $2,000,000 to a rate of $3.30 per $500, to be collected for RI housing for elderly affordable housing development. Provides and exemption to any entity developing elderly affordable housing.

RI S2372

RI HB06630

An Act Concerning The Rate Of The Real Estate Conveyance Tax On Certain Conveyances.