Skip to main content
H 7047Property

Taxation - Levy and Assessment of Local Taxes

Little Compton may grant property tax reductions to resident homeowners and landlords who rent to locals without raising rents.

Signed into law69 Yea0 Nay6 Not voting
Population
Affected
8
Email Legislator
Introduced Jan 9, 2026Committee House Municipal Government & Housing

Plain-English Summary

This legislation authorizes the town of Little Compton to implement a homestead exemption for real estate taxes. This exemption allows the town to reduce the taxable value of residential properties owned by residents who live there for more than six months a year. The exemption is initially set at 10% of the mean assessed value of properties in the town, with future adjustments allowed between 5% and 15%. The bill outlines eligibility for registered voters, non-voters, owners of second homes in town, and landlords who rent to full-time residents without increasing rent.

For younger readers

This bill creates a new rule for the town of Little Compton. It allows the town to lower the amount of tax money that people have to pay on their houses, but only if they actually live there for most of the year. Taxes are money people pay to the town to help fix roads and run schools. This rule also helps people who rent their houses to others, as long as the owner promises not to raise the rent price. This is meant to help people who live in Little Compton afford to stay in their homes.

Who & Where It Applies

Impacted groups
Little Compton HomeownersRentersLandlordsNon-resident Property OwnersRegistered Voters
Impacted communities
Little Compton

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Incentivizes rent stabilization by offering tax exemptions to landlords who rent to full-time residents and agree not to increase rental payments, potentially protecting tenants from price hikes.
  • Provides financial relief to year-round residents, which may help lower-income families and seniors on fixed incomes retain their homes in an area with high property values.
  • Shifts the relative tax burden toward non-resident vacation homeowners and short-term rentals, prioritizing the economic well-being of the actual community members over absentee investors.
  • Allows residents to claim a tax exemption on a second residential dwelling, effectively providing government-subsidized financial relief to wealthier individuals who can afford multiple properties.
  • Links automatic qualification for the benefit to voter registration status, which creates a barrier for residents who are eligible to vote but choose not to, or those who cannot vote.
  • Calculates the exemption based on the "mean assessed value" of all properties, which in a wealthy coastal town could result in a disproportionately high deduction that benefits high-value property owners more than necessary.
For Conservatives
  • Reduces the property tax burden for homeowners, allowing citizens to retain more of their income and protecting private property rights from excessive government taxation.
  • Ensures local control by requiring the homestead exemption and its specific percentage to be approved annually by the financial town meeting, giving taxpayers direct oversight.
  • Encourages long-term residency and homeownership, which fosters community stability and preserves the traditional character of the town against transient populations.
  • Interferes with the free market by conditioning tax breaks for landlords on the freezing of rental rates, effectively implementing a form of soft rent control.
  • Redistributes the tax burden to non-resident property owners who do not have a vote in the town meeting, effectively taxation without local representation for vacation home owners.
  • Creates potential bureaucratic inefficiencies and errors by automatically enrolling individuals based on government voter registration lists rather than requiring all citizens to proactively apply.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 32 additions

SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local Taxes" is hereby amended by adding thereto the following section: 44-5-79.1. Little Compton -- Homestead exemption.

(a) The town council, upon approval by the financial town meeting, is authorized to annually fix the amount of a homestead exemption with respect to the assessed value from local taxation on taxable real property used for residential purposes in the town of Little Compton and to grant homestead exemptions to the owner(s) of those residential dwellings in percentage amounts as follows:

(1) In the first year the exemption will be ten percent (10%) of the mean assessed value of all taxable real properties in the town of Little Compton.

(2) In each subsequent fiscal year, the financial town meeting may, by majority vote, amend the percentage described in subsection (a)(1) of this section, within a range of not less than five percent (5%) or more than fifteen percent (15%) of the mean assessed value of all taxable real properties in the town of Little Compton.

(b) All residents who own the residential dwelling in which they reside and are registered to vote in the town of Little Compton shall automatically qualify for the homestead exemption and shall not be required to file an application for the homestead exemption.

(c) Non-registered voters who are residents of the town of Little Compton and who own the residential dwelling in which they reside may apply for the homestead exemption on forms supplied by the Little Compton tax assessor and by demonstrating residency in Little Compton with a Rhode Island driver’s license or other official identification and a utility bill showing the name and address of the resident.

(d) Residents of Little Compton who own more than one residential dwelling located in Little Compton may also apply for a homestead exemption on a second residential dwelling using the process set forth in subsections (b) and (c) of this section.

(e) A residential dwelling leased for at least twelve (12) months to a full-time resident may also be eligible for a homestead exemption so long as the rental payments remain at the same amount at the start of the next twelve (12) month lease cycle following the approval of the exemption. The Little Compton tax assessor shall supply application forms for rental property homestead exemptions, to be filed along with the lease agreement, and additional identifying information for the tenant(s) as determined by the tax assessor.

(f) For the purposes of this section, the term “resident” means an individual whose principal place of residence is located within the town of Little Compton and who occupies such dwelling for more than six (6) months of the calendar year.

SECTION 2. This act shall take effect upon passage.