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.
Impact
One of the critical implications of H5756 is its potential to enhance funding for affordable housing initiatives. The bill mandates that any revenues generated from the additional conveyance tax must be placed into restricted accounts, which must then be disbursed within two years to develop affordable housing projects for families earning up to 80% of the area median income. This measure aligns with the state's ongoing efforts to address housing affordability and economic equity, particularly in communities facing significant housing challenges.
Summary
House Bill H5756 proposes amendments to the real estate conveyance tax laws in Rhode Island, specifically allowing municipalities to establish their own conveyance tax rate. The bill sets the threshold for this local tax at residential properties sold above $900,000 at a rate of $10 per $500 of the property's value exceeding this threshold. This significant change aims to empower local governments by giving them discretion over tax rates, which could lead to greater local revenue generation and customization of tax structures to better fit community needs.
Contention
H5756 has sparked debate among legislators and stakeholders, particularly around the complexities of local versus state control over taxation. Proponents of the bill argue that the flexibility it offers to municipalities will allow for tailored responses to local real estate markets and needs. Conversely, some critics express concern that varying tax rates across municipalities could lead to confusion among property buyers and may affect the housing market dynamics. Furthermore, there is a worry about the effectiveness of local governments in managing these funds and ensuring they directly address housing shortages.
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.
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.
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.
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.
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.
Amends the capital gains tax rates and holding period from 5 years to 1 year. Imposes a non-owner occupied tax on homes assessed at more than $1,000,000.
Grants a right of first offer to qualified nonprofits for the purchase of certain multi-family residential properties at market prices, within a reasonable period of time to promote the creation and preservation of affordable rental housing.
Grants a right of first offer to qualified nonprofits for the purchase of certain multi-family residential properties at market prices, within a reasonable period of time to promote the creation and preservation of affordable rental housing.
Property insurance provided for grantee beneficiaries of transfer on death deeds; and technical, clarifying, and conforming changes made to transfer on death deeds.