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H 7700Property

Taxation - Property Tax Relief

This bill raises the income limit for property tax relief eligibility and increases the maximum future tax credit amount.

Held for study
Population
Affected
28
Email Legislator
Introduced Feb 11, 2026Committee House Finance

Plain-English Summary

This bill updates Rhode Island's property tax relief program. It expands the number of people who qualify for the program by raising the maximum household income limit from $35,000 to $50,000. Additionally, the bill increases the maximum tax credit amount a person can receive. Currently, the maximum credit is $600, but under this new legislation, it will rise to $850 for tax years beginning on or after January 1, 2027.

For younger readers

This new rule changes how the state helps people pay the taxes on their homes. Usually, families have to pay money to the government based on their house, which is called property tax. This bill says that families who earn a little more money than before can now get help paying these taxes. Also, starting in the year 2027, the government will give a larger amount of money back to people to help cover these costs. It is like a bigger coupon to help make living in a house more affordable.

Who & Where It Applies

Impacted groups
Low-income householdsHomeownersRentersElderly residentsTaxpayers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Expands the social safety net by raising the income eligibility threshold to $50,000, allowing more working-class families and individuals to access necessary financial relief.
  • Increases the maximum credit amount significantly in future years, providing more robust financial support to low-income homeowners and renters struggling with the rising cost of living.
  • Promotes housing stability by reducing the tax burden on vulnerable populations, potentially preventing displacement due to unaffordable property tax bills.
  • Delays the increase in the maximum credit amount until 2027, failing to provide immediate additional relief to families currently struggling with economic hardship.
  • Maintains an income cap of $50,000 which, while improved, may still exclude many moderate-income households struggling with the high cost of living in the state.
  • Relies on a tax credit model rather than systemic property tax reform, which acts as a temporary band-aid rather than addressing the root causes of housing unaffordability.
For Conservatives
  • Reduces the overall tax burden for eligible residents, allowing individuals and families to keep more of their earned income rather than giving it to the state.
  • Provides targeted relief specifically for property taxes, supporting homeownership and helping seniors or those on fixed incomes remain in their communities.
  • Maintains a means-tested approach to government assistance, ensuring that tax credits are reserved for those with lower incomes rather than creating a universal entitlement program.
  • Increases government spending obligations by raising the credit amount and expanding the pool of eligible recipients, potentially straining the state budget.
  • Expands the number of citizens dependent on government assistance programs by raising the income threshold, moving away from principles of self-reliance.
  • Reduces state revenue without specified spending cuts elsewhere, which could lead to future tax hikes or fiscal irresponsibility to cover the difference.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 4 additions · 1 deletion

SECTION 1. Section 44-33-9 of the General Laws in Chapter 44-33 entitled "Property Tax Relief" is hereby amended to read as follows: 44-33-9. Computation of credit. The amount of any claim made pursuant to this chapter shall be determined as follows:

(1) For any taxable year, a claimant is entitled to a credit against his or her tax liability equal to the amount by which the property taxes accrued or rent constituting property taxes accrued upon the claimant’s homestead for the taxable year exceeds a certain percentage of the claimant’s total household income for that taxable year, which percentage is based upon income level and household size. The credit shall be computed in accordance with the following table: Income Range 1 Person 2 or More Persons less than $6000 3% 3% $6001-9000 4% 4% $9001-12000 5% 5% $12001-15000 6% 5% $15001-35000 50000 6% 6%

(2) The maximum amount of the credit granted under this chapter will be as follows: Year Credit Maximum Commencing July 1977 $ 55.00 Commencing July 1978 $150.00 Commencing July 1979 $175.00 Commencing July 1980 $200.00 Commencing on July 1997 and subsequent years $250.00 Commencing on July 2006 $300.00 Commencing July 2007 and subsequent tax years ending on or before December 31, 2021, the credit shall be increased, at a minimum, to the maximum amount to the nearest five dollars ($5.00) increment within the allocation of five one-hundredths of one percent (0.05%) of net terminal income derived from video lottery games up to a maximum of five million dollars ($5,000,000) until a maximum credit of five hundred dollars ($500) is obtained pursuant to the provisions of § 42-61-15. In no event shall the exemption in any fiscal year be less than the prior fiscal year. For tax years beginning on or after January 1, 2022, the maximum credit shall be six hundred dollars ($600). For tax years beginning on or after January 1, 2027, the maximum credit shall be eight hundred fifty dollars ($850). For tax years beginning on or after January 1, 2023 , the income range provided pursuant to subsection (1) of this section and the maximum credit granted pursuant to subsection (2) of this section shall be adjusted by the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) as published by the United States Department of Labor Statistics determined as of September 30 of the prior calendar years. Said adjustment shall be compounded annually and shall be rounded up to the nearest five dollar ($5.00) increment. In no event shall the income range or the maximum credit in any tax year be less than the prior tax year.

SECTION 2. This act shall take effect upon passage.