Rhode Island 2025 Regular Session

Rhode Island House Bill H5688 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3
4	4
5	5	2025 -- H 5688
6	6	========
7	7	LC001479
8	8	========
9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
16	16	Introduced By: Representatives Speakman, Casey, Kislak, and Diaz
17	17	Date Introduced: February 26, 2025
18	18	Referred To: House Municipal Government & Housing
19	19	(Providence)
20	20
21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 44-5-13.11 of the General Laws in Chapter 44-5 entitled "Levy and 1
23	23	Assessment of Local Taxes" is hereby amended to read as follows: 2
24	24	44-5-13.11. Qualifying low-income housing — Assessment and taxation. 3
25	25	(a) Any residential property that has been issued an occupancy permit on or after January 4
26	26	1, 1995, after substantial rehabilitation as defined by the U.S. Department of Housing and Urban 5
27	27	Development and is encumbered by a covenant recorded in the land records in favor of a 6
28	28	governmental unit or Rhode Island housing and mortgage finance corporation restricting either or 7
29	29	both the rents that may be charged to tenants of the property or the incomes of the occupants of the 8
30	30	property is,: 9
31	31	(1) At least forty percent (40%) of the rental dwelling units in the property to levels 10
32	32	affordable to households at or below eighty percent (80%) statewide area median income, adjusted 11
33	33	for family size; or 12
34	34	(2) At least thirty percent (30%) of the rental dwelling units in the property to levels 13
35	35	affordable to households at or below sixty percent (60%) statewide area median income, adjusted 14
36	36	for family size, as established by § 45-53-3 are subject to a tax that equals eight percent (8%) of 15
37	37	the property’s previous years’ gross scheduled rental income or a lesser percentage as determined 16
38	38	by each municipality. 17
39	39	(b) Any residential rental housing that is created by converting an existing building, from 18
40	40	non-residential use, and is issued an occupancy permit, shall be subject to a fixed percentage of the 19
41	41
42	42
43	43	LC001479 - Page 2 of 4
44	44	prior year’s gross scheduled rental income for the following thirty (30) years as outlined below: 1
45	45	Year Schedule 2
46	46	1 8% 3
47	47	2 8% 4
48	48	3 8% 5
49	49	4 8% 6
50	50	5 8% 7
51	51	6 8% 8
52	52	7 8% 9
53	53	8 8% 10
54	54	9 8% 11
55	55	10 8% 12
56	56	11 8% 13
57	57	12 8% 14
58	58	13 8% 15
59	59	14 8% 16
60	60	15 8% 17
61	61	16 10% 18
62	62	17 10% 19
63	63	18 10% 20
64	64	19 10% 21
65	65	20 10% 22
66	66	21 12% 23
67	67	22 12% 24
68	68	23 12% 25
69	69	24 12% 26
70	70	25 12% 27
71	71	26 12% 28
72	72	27 12% 29
73	73	28 12% 30
74	74	29 12% 31
75	75	30 12% 32
76	76	(c) The term “residential property” as used in this section shall not include any portion of 33
77	77	a mixed-use building that is not used as a residence or in service of a residence. In those instances, 34
78	78
79	79
80	80	LC001479 - Page 3 of 4
81	81	property owners shall provide evidence deemed necessary by the local assessor to demonstrate the 1
82	82	fractional portion of each property that should be taxed at the appropriate non-residential rate. The 2
83	83	assessor shall then tax the residential portion at the appropriate rate set in subsections (a) or (b) of 3
84	84	this section, and the remainder at the appropriate non-residential rate. 4
85	85	(d) For those properties that have been approved for tax treatment under this section by an 5
86	86	assessor as of December 31, 2024, the manner in which the assessor has applied this statute in the 6
87	87	past may continue receiving any previously established tax rate agreed to by the municipality and 7
88	88	the property owner unless the property owner affirmatively rejects the same. Said prior tax 8
89	89	treatment is transferrable to any subsequent property owner if the conditions of the tax treatment 9
90	90	are met by the new owner to the satisfaction of the assessor. 10
91	91	(e) Creating low-income housing and creating new housing through adaptive reuse are 11
92	92	matters of state-wide concern. For that reason, no city or town shall have the authority to tax 12
93	93	properties qualifying for and utilizing this section at any rate higher than otherwise provided for in 13
94	94	this section. 14
95	95	SECTION 2. This act shall take effect upon passage. 15
96	96	========
97	97	LC001479
98	98	========
99	99
100	100
101	101	LC001479 - Page 4 of 4
102	102	EXPLANATION
103	103	BY THE LEGISLATIVE COUNCIL
104	104	OF
105	105	A N A C T
106	106	RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
107	107	***
108	108	This act would provide an 8% tax rate for those properties that are encumbered by a deed 1
109	109	restriction for low-income housing set at 80% or 60% of adjusted median income established by 2
110	110	HUD, and would provide a tax stabilization schedule for those buildings which are converted to 3
111	111	residential properties starting at 8% of rent rolls and gradually increasing over thirty (30) years. 4
112	112	This act would take effect upon passage. 5
113	113	========
114	114	LC001479
115	115	========