Provides that the city of Woonsocket not be required to accept additional residential properties subject to the alternative tax assessment due to its stock of affordable housing meeting the 10% housing requirement.
Impact
A significant aspect of the bill is its provision for the city of Woonsocket, which allows the municipality not to accept additional residential properties into this alternative assessment scheme once it meets the threshold of having 10% of its housing stock classified as affordable. This is aimed at managing and sustaining local resources while facilitating better control over the local housing market and tax base.
Summary
Bill S2583 amends Section 44-5-13.11 of the General Laws concerning the levy and assessment of local taxes in Rhode Island. This legislation specifically targets residential properties that have received occupancy permits post-January 1, 1995, and have undergone substantial rehabilitation as per U.S. Department of Housing and Urban Development guidelines. The bill permits local municipalities to impose an 8% tax on the previous year's gross scheduled rental income for qualifying low-income housing properties that comply with certain affordability restrictions.
Contention
Opposition may arise regarding the bill's potential impact on affordable housing initiatives across the state, as it limits the scope of properties that can benefit from the reduced tax assessment. Notably, individuals and organizations advocating for broader affordable housing solutions might view this bill as a barrier to expanding local housing opportunities, especially in communities working to meet or exceed the affordable housing benchmarks.
Notable_points
The simplicity of the bill's structure is balanced by its local specificities such as the conditions set for Woonsocket, and it lays out clear criteria for tax assessments. This balance could lead to discussions in the legislature about the effectiveness of such local tax strategies in fostering affordable housing developments and the implications they have for municipalities beyond Woonsocket.