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H 7375Cities & Towns

Towns and Cities - Zoning Ordinances

Permits home-based businesses meeting IRS criteria to operate without municipal approval, subject to safety and parking restrictions.

Introduced
Population
Affected
35
Email Legislator
Introduced Jan 28, 2026Committee House Municipal Government & Housing

Plain-English Summary

This legislation allows individuals in Rhode Island to operate a business from their home without obtaining specific permission or permits from their local city or town government. To qualify, the business must meet the federal tax requirements for a home office deduction. However, the bill sets specific safety and space limits: the business cannot store chemicals or hazardous materials, cannot park heavy equipment on the property, and cannot use more than 10% of the property for business-related parking.

For younger readers

This new rule says that people can do their jobs or run a small business from inside their own houses without asking their town for special permission first. To do this, the business has to follow certain tax rules. Also, to keep the neighborhood safe and quiet, the business is not allowed to keep dangerous chemicals or big construction trucks at the house. They are also not allowed to turn a large part of their yard or driveway into a parking lot for the business.

Who & Where It Applies

Impacted groups
HomeownersSmall Business OwnersRemote WorkersMunicipal Zoning BoardsResidential Neighbors
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Lowers barriers to entry for low-income entrepreneurs and minorities by removing bureaucratic hurdles and permit fees associated with starting a small business.
  • Supports the gig economy and remote work flexibility, which can be crucial for parents, caregivers, and individuals with disabilities who need to work from home.
  • Reduces the potential for discriminatory enforcement of local zoning laws, ensuring that approvals are not subject to the bias of local officials.
  • Removes local municipal oversight, potentially allowing businesses that disrupt the character or safety of residential neighborhoods to operate without initial community input.
  • Relying on "IRS criteria" ties local regulation to federal tax codes, which may not adequately address local labor standards or community welfare concerns.
  • Could contribute to the commercialization of residential areas, potentially driving up housing costs and contributing to gentrification in affordable neighborhoods.
For Conservatives
  • Significantly reduces government red tape and regulation, allowing individuals to exercise their economic freedom without interference from local bureaucracy.
  • Strengthens private property rights by affirming that homeowners should be able to utilize their own property for productive economic activities.
  • Promotes self-sufficiency and entrepreneurship, reducing reliance on government assistance by making it easier for individuals to generate their own income.
  • Undermines the authority of local municipalities to self-govern and manage their own zoning laws, representing an overreach of state power over local communities.
  • Links state permission to the federal Internal Revenue Code, effectively ceding the definition of acceptable business practices to the federal government.
  • Could negatively impact the quiet enjoyment of private property and traditional family neighborhoods by increasing commercial activity next to homes.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 7 additions

SECTION 1. Chapter 45-24 of the General Laws entitled "Zoning Ordinances" is hereby amended by adding thereto the following section: 45-24-37.1. Home-based businesses. Notwithstanding any zoning or other municipal ordinance to the contrary, any individual operating a home-based business which meets the criteria provided by the Internal Revenue Code for a home office tax deduction, may operate without securing any approvals from their municipality; provided, that the home-based business does not store chemicals, other hazardous materials, or park heavy equipment on the premises, and not more than ten percent (10%) of the premises are used for parking in connection with the operation of the home-based business.

SECTION 2. This act shall take effect upon passage.