H 8035Property

Towns and Cities - Property Tax/rent Freeze Bill

If a town limits rent increases, it is prohibited from raising property taxes or assessments on those rental properties.

Held for study

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Introduced Feb 27, 2026Committee House Municipal Government & Housing

Plain-English Summary

This bill creates a specific rule for cities and towns in Rhode Island regarding property taxes and rent control. It states that if a municipality passes a local law (ordinance) that limits how much a landlord can increase rent, that municipality is then prohibited from raising property tax rates or increasing the assessed value of those rental properties. This tax freeze remains in effect for as long as the rent control measures are in place. The rule applies to various types of housing, including apartments, condos, and single-family homes.

For younger readers

Imagine a town makes a rule telling building owners that they are not allowed to raise the price of rent for the people living there. This bill says that if the town makes that rule, the town is not allowed to ask the building owners for more tax money either. Taxes are money adults pay to the town to help pay for things like schools and roads. So, if the town stops the rent from going up, the town must also stop the taxes on those buildings from going up.

Who & Where It Applies

Impacted groups

LandlordsTenantsMunicipal GovernmentsProperty TaxpayersHomeowners

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Could potentially stabilize housing costs for tenants by removing the need for landlords to pass on property tax increases in the form of higher rents or fees.
Might make the concept of rent stabilization more politically feasible to pass in some towns by offering a compromise that protects the financial viability of small-scale landlords.
Prevents the displacement of long-term residents that can occur when rising property valuations drive up taxes, forcing landlords to hike rents significantly.
Creates a severe financial deterrent for cities and towns to enact rent control, effectively prioritizing landlord profits over tenant protections and affordable housing measures.
Would drastically reduce municipal revenue needed for public schools, infrastructure, and social safety nets if a town chose to protect tenants through rent stabilization.
Disproportionately benefits property owners by freezing their tax obligations while potentially shifting the tax burden to other residents to make up for budget shortfalls.

For Conservatives

Protects property owners from the financial squeeze of government-imposed price controls on their income while simultaneously facing rising government tax demands.
Discourages municipalities from interfering in the free market with rent control mandates by attaching a significant fiscal penalty to such government overreach.
Enforces the principle that the government cannot unjustly profit via higher taxes from a property while actively limiting the owner's ability to generate revenue from it.
Interferes with the principle of local control (Home Rule) by dictating how cities and towns must manage their own tax assessments and revenue streams.
Implicitly validates the existence of rent control by creating a regulatory framework to accommodate it, rather than banning the practice of rent control outright.
Could complicate the tax code and create administrative burdens by requiring different tax treatments for properties based on temporary local ordinances.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 12 additions

SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby amended by adding thereto the following chapter: 45-71-1. Property tax increase prohibited.

(a) Any city or town that adopts an ordinance limiting the right of a property owner, property manager, or landlord to increase rent prices on a rental unit shall be prohibited from increasing property tax rates or reassessing property values on affected rental units for as long as the ordinance limiting rental increases remains in effect.

(b) The prohibition against increasing property tax rates or reassessing property values established in this section shall remain in effect only in taxable years in which a city or town maintains an adopted ordinance limiting the right of a property owner, property manager, or landlord to increase rent prices on a rental unit.

(c) For the purpose of this section “rental unit” means any part of a housing accommodation rented or offered for rent for residential occupancy, including apartments, rooms, condominiums, single-family homes, or manufactured homes.

SECTION 2. This act shall take effect upon passage.