Skip to main content
H 7298Property

Taxation - Levy and Assessment of Local Taxes

This bill allows Tiverton to set different property tax rates for different types of properties, like homes and businesses.

Signed into law66 Yea0 Nay8 Not voting
Population
Affected
8
Email Legislator
Introduced Jan 23, 2026Committee House Municipal Government & Housing

Plain-English Summary

This bill grants the town of Tiverton the authority to establish a specific tax classification system for local property taxes. It empowers the town assessor to categorize properties into five distinct classes: residential (five units or less), commercial/industrial (including larger residential complexes), tangible personal property, motor vehicles, and mobile homes on leased land. The bill allows the town to set different tax rates for these classes. Additionally, it permits Tiverton to implement a homestead exemption or establish separate tax rates for owner-occupied homes versus non-owner-occupied properties.

For younger readers

This bill changes the rules for how the town of Tiverton collects money, called taxes, from people who own buildings and land. It puts different kinds of properties into groups. For example, houses where families live are in one group, and stores are in another. The town can decide to charge a different amount of money for each group. It also lets the town give a lower price to people who live in the house they own, compared to people who own a house but rent it out to others.

Who & Where It Applies

Impacted groups
Tiverton HomeownersTiverton Business OwnersLandlordsRenters in TivertonTiverton Tax Assessor
Impacted communities
Tiverton

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Allows for a homestead exemption or split tax rates for owner-occupied homes, which helps protect local families from displacement and promotes housing stability.
  • Enables the town to tax commercial and industrial properties at a different rate than residential homes, potentially ensuring corporations pay a fair share for community infrastructure.
  • Provides a mechanism to tax absentee landlords at a higher rate than residents, potentially discouraging the hoarding of housing stock for profit.
  • Classifies residential properties with more than five units as "commercial," which could result in higher taxes on apartment complexes that are passed down to renters.
  • Allowing higher rates for non-owner-occupied properties might incentivize landlords to raise rents to cover the cost, negatively impacting low-income tenants.
  • Does not mandate specific protections or tax freezes for low-income seniors or vulnerable populations, leaving their relief entirely up to future discretionary policy.
For Conservatives
  • Supports the principle of local control by allowing the town of Tiverton to manage its own revenue structure without state interference.
  • Protects the interests of homeowners by allowing for a homestead exemption, rewarding those who have invested in their property and community.
  • Establishes a clear, legal framework for property assessment, supporting the rule of law and predictability in local taxation.
  • Empowers the government to discriminate between property owners by charging different rates for different uses, rather than a flat, equal rate for all.
  • Potentially penalizes business owners and investors by placing them in a separate tax class that often carries a higher financial burden than residential property.
  • Increases the regulatory power of the tax assessor to determine property values and classifications, expanding bureaucratic influence over private property.

Votes

Loading votes...

Full Bill Text

Changes to existing Rhode Island law · 21 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: 44-5-11.19. Tax classification - Tiverton.

(a) The assessor of the town of Tiverton shall annually prepare a list containing the full and fair valuation of each property within the town and the percentage of the tax levy to be apportioned to each class of property and tax rates sufficient to produce the proportion of the total tax levy.

(b) The assessor has the authority to apply different rates of taxation against all classes of property to determine the tax due and payable on the property; provided that, the rate of taxation is uniform within each class.

(c) Classes of property.

(1) Class 1: Residential real estate consisting of not more than five (5) dwelling units; land classified as open space; and dwellings on leased land.

(i) A homestead exemption provision is also authorized within this class.

(ii) In lieu of a homestead exemption, the town of Tiverton may divide this class into non- owner and owner-occupied property and adopt separate tax rates in compliance with the within tax rate restrictions.

(2) Class 2: Commercial and industrial real estate; residential properties containing partial commercial or business uses; and residential real estate of more than five (5) dwelling units.

(3) Class 3: All ratable, tangible personal property.

(4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of this title (repealed).

(5) Class 5: Mobile homes on leased land, which shall be subject to tax at the applicable state rate.

SECTION 2. This act shall take effect upon passage.