Establishes the assessed value of owner-occupied low- and moderate-income housing as the most recent sales price of the property.
Impact
The implications of S0499 are significant, especially for municipalities that conduct property assessments. By tying the assessed value of low- and moderate-income housing directly to the last sales price, the bill seeks to change how local governments manage their property tax revenues. This could lead to reduced tax revenues in specific municipalities, especially if a significant portion of owner-occupied homes are classified under this new assessment standard. Conversely, it aims to prevent tax burdens from escalating quickly for these homeowners, which is a concern in areas experiencing rapid property value appreciation.
Summary
Senate Bill S0499 aims to amend existing taxation laws in Rhode Island, specifically concerning the assessment of owner-occupied low- and moderate-income housing. This legislation proposes that the assessed value of such properties should be established based on the most recent sales price of the property, ensuring that those who occupy these homes are not subjected to inflated property tax assessments that may occur through periodic revaluation processes. This change is intended to make homeownership more affordable for low and moderate-income residents by providing a stable and predictable base for property taxes.
Contention
There may be varied responses to S0499 among stakeholders, including city councils and housing advocates. While proponents argue that this measure will enhance affordability for residents in need, critics might contend that it undermines local revenue models that rely on property taxes for essential services. The necessity for municipalities to accommodate this new framework may lead to pushback from those concerned about potential funding shortfalls for local programs, triggering a discussion about the balance between affordable housing and local government funding needs.
Provides that only residential properties and new or rehabilitated residential affordable housing units would be subject to the tax under § 44-5-13.1 relating to taxation of low-income housing.
Provides that only residential properties and new or rehabilitated residential affordable housing units would be subject to the tax under § 44-5-13.1 relating to taxation of low-income housing.
Restricts increases in monthly common expenses and limit special assessments to cover unforeseen costs not included in the association’s approved annual budget for common expenses in associations where the minority of the units are deed restricted units.
Includes non-owner-occupied residential properties used for short-term rentals for tourist or transient use to be assessed as Class 2 properties on or after the assessment date of December 31, 2024.