Rhode Island Senate Bill S0882

Rhode Island 2023 Regular Session

• Introduced: 3/30/23
• Refer: 3/30/23

Caption

Property Subject To Taxation

Impact

The bill's passage is expected to relieve financial burdens on urban and small farmers, thereby potentially increasing local food production and contributing to economic development within municipalities. By granting tax exemptions, the state hopes to incentivize more individuals to engage in farming activities, particularly in urban areas where land is often limited. This could help bolster food security and sustainability initiatives by encouraging local sourcing of produce.

Summary

S0882 aims to amend the existing laws surrounding property subject to taxation in Rhode Island by allowing municipalities to exempt the real and personal property of urban and small farmers from taxation. Urban farmers are defined as those who produce or grow food in densely populated areas, while small farmers operate on agricultural land of up to five acres. This legislation is intended to promote agricultural practices in urban settings, thereby enhancing local food systems and supporting small-scale farming.

Contention

While the bill has garnered support for its benefits to urban agriculture and local economies, there are concerns regarding its fiscal implications for municipalities that might lose tax revenue as a result of these exemptions. Critics argue that this could lead to funding shortfalls for essential services dependent on property tax revenue. Furthermore, questions about the definitions and qualifications for what constitutes an 'urban' or 'small' farm may also arise, leading to potential disputes in tax assessments and exemptions.