Allows the town council of New Shoreham to adopt a tax classification plan in accordance with the provisions of this section, to be applicable to taxes on or after the assessment date of December 31, 2025.
Impact
If enacted, H6090 will facilitate a more nuanced approach to local taxation within New Shoreham and potentially other municipalities. The bill permits towns to establish distinct tax rates for different classes of properties thereby accommodating the economic realities faced by property owners. The legislation would empower local governments to maintain or raise revenue while being responsive to the needs of their communities, particularly in keeping tax burdens equitable among residents based on occupancy status.
Summary
House Bill H6090 aims to amend the General Laws of Rhode Island concerning the levy and assessment of local taxes. Specifically, it seeks to empower the town council of New Shoreham to adopt a tax classification plan for residential real estate, which would allow differentiation between non-owner-occupied and owner-occupied properties. This change addresses the tax rate structure applicable to various classes of real estate, offering municipalities more autonomy in their taxation policies, especially in regard to property rates following a comprehensive revaluation.
Sentiment
The sentiment around H6090 appears to be largely supportive among local officials and property owners in New Shoreham who welcome the flexibility to set tax classifications that reflect their unique local circumstances. However, concerns may arise regarding the implementation and fairness of varying tax rates—particularly if the differentiation results in higher rates for non-owner-occupied units, potentially leading to dissatisfaction from landlords or investors.
Contention
Notable points of contention regarding the bill could emerge from debates around the fairness of creating different tax classes. Detractors may argue that such divisions could disproportionately impact those who rent property or who own multiple properties. Furthermore, larger municipalities like Providence might still face challenges in applying these changes uniformly, as existing regulations limit the extent to which local councils can diverge from state policy. Balancing locally determined tax classifications with state regulations is likely to remain a critical topic during discussions of this bill.
Amends provisions relative to the levy and assessment of local taxes and would provide that the city of Providence may adopt a tax classification with unrestricted tax rates for certain classes of property.
Amends provisions relative to the levy and assessment of local taxes and would provide that the city of Providence may adopt a tax classification with unrestricted tax rates for certain classes of property.
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.
Places a cap of twenty percent (20%) on increases in consecutive revaluations of real property in all cities and towns conducting revaluations commencing December 31, 2024, and every December 31 thereafter.