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H 8525Property

Taxation - Levy and Assessment of Local Taxes

This bill allows the town of Coventry to classify property into three categories and set different local tax rates.

Signed into law66 Yea2 Nay7 Not voting
Population
Affected
8
Email Legislator
Introduced May 6, 2026Committee House Municipal Government & Housing

Plain-English Summary

This bill allows the town of Coventry to divide its taxable property into three specific categories: residential real estate (including homes up to five units, open space, and mobile homes), commercial and industrial real estate (including larger residential properties with more than five units), and tangible personal property (excluding motor vehicles). It requires the town assessor, with approval from the town council, to determine the total value of each category and set specific tax rates for each class to generate the town's required tax revenue.

For younger readers

This bill changes how the town of Coventry collects property taxes. Property taxes are money people pay to the town based on the value of their homes or businesses. The bill splits all properties into three groups: regular homes, businesses and large apartment buildings, and business equipment. It then lets the town leaders decide what percentage of the total tax money should come from each of those three groups and set the tax rates for them.

Who & Where It Applies

Impacted groups
Coventry homeownersCoventry business ownersLandlords in CoventryMobile home owners in CoventryCoventry town officials
Impacted communities
Coventry

Constitutional & Fiscal Check

None Likely. This bill simply authorizes a standard municipal property tax classification system for a specific town, which is a common and well-established practice under state law. It does not implicate free speech, due process, or unreasonable searches and seizures.

Estimated cost
Amount unknown
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Enables the town to shift the tax burden away from working-class homeowners and mobile home residents by creating distinct property classes that can be taxed at different rates.
  • Allows for higher taxation on commercial, industrial, and large corporate real estate, ensuring that wealthier business entities contribute a larger share to public services.
  • Protects the environment and community well-being by grouping open space land with residential properties, potentially shielding it from higher commercial tax rates and encouraging conservation.
  • Classifying residential properties with more than five units as commercial real estate could lead to higher property taxes on apartment buildings, which landlords may pass on to lower-income renters.
  • Leaves the actual tax rates entirely up to the town council, creating a risk that local politicians could yield to corporate lobbying and lower commercial rates at the expense of everyday residents.
  • Fails to mandate specific tax relief, exemptions, or progressive tiers for low-income homeowners, treating all small residential properties the same regardless of the owner's ability to pay.
For Conservatives
  • Empowers local government by giving the Coventry town council direct authority to determine tax levy apportionments, moving decision-making closer to the taxpayers.
  • Specifically excludes motor vehicles and trailers from the tangible personal property tax class, protecting citizens from additional government taxation on their personal transportation.
  • Provides the town council with the flexibility to potentially lower the tax burden on commercial and industrial properties to attract business and promote free-market economic growth.
  • Opens the door for the town government to unfairly target businesses and commercial enterprises with disproportionately high tax rates to subsidize residential services, essentially redistributing wealth.
  • Maintains a tax on tangible personal property, which penalizes small business owners by taxing the equipment and assets they need to operate and succeed.
  • Increases bureaucratic complexity by requiring the local assessor to divide properties into separate classes and calculate different levy percentages, growing the size and scope of local government administration.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 18 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 sections: 44-5-20.30. Coventry -- Property tax classification, levy determination and valuation.

(a) The assessor of the town of Coventry, on or before June 1 of each year, shall make full and fair cash valuation of each property class as identified in subsection (b) of this section and notwithstanding the provisions of § 44-5-11.8 to the contrary, determine the percentage of the tax levy to be apportioned each class of property and shall apply tax rates sufficient to produce the proportion of the total tax levy.

(b) Classes of property.

(1) Class 1. Residential real estate consisting of no more than five (5) dwelling units; land classified as open space; and dwellings on leased land including mobile homes.

(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 excluding motor vehicles and trailers subject in all respects to the requirements of § 44-5.3-3. 44-5-20.31. Coventry -- Property tax classification -- Tax levy determination. The assessor shall provide to the town council a list containing the full and fair valuation of each property class, and with the approval of the town council, annually determine the percentage of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

SECTION 2. This act shall take effect retroactively to December 31, 2025.