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S 2576Property

Taxation - Levy and Assessment of Local Taxes

Allows Tiverton to set different property tax rates for businesses, homeowners, and landlords.

Signed into law69 Yea0 Nay6 Not voting
Population
Affected
8
Email Legislator
Introduced Feb 13, 2026Committee Senate Housing & Municipal Government

Plain-English Summary

This legislation grants the tax assessor in the town of Tiverton the authority to establish different property tax rates based on specific property classifications. It defines classes for residential real estate, commercial and industrial property, tangible personal property, and mobile homes. Additionally, the bill allows Tiverton to implement a homestead exemption or split residential properties into owner-occupied and non-owner-occupied categories, applying different tax rates to each. This ensures tax rates are uniform within each specific class but can vary between classes.

For younger readers

This rule is for the town of Tiverton. It lets the town decide how much money people have to pay for the buildings and land they own. This payment is called a tax. The rule says the town can charge different amounts depending on what the building is used for. For example, a store might pay a different amount than a house. Also, people who live in their own houses might pay a different amount than people who own a house but rent it out to others.

Who & Where It Applies

Impacted groups
Tiverton HomeownersTiverton Business OwnersLandlordsRentersMobile Home Owners
Impacted communities
Tiverton

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Enables the implementation of a homestead exemption or lower rates for owner-occupied homes, which can provide financial relief to local families and residents.
  • Allows the town to shift the tax burden toward commercial properties and non-owner-occupied investments, potentially ensuring that wealthier property owners contribute a fairer share.
  • Provides the local government with flexible tools to manage revenue, ensuring that essential public services can be funded without disproportionately impacting low-income resident homeowners.
  • If the town raises taxes on non-owner-occupied properties, landlords may pass these costs on to tenants, potentially increasing rent for low-income families and exacerbating housing insecurity.
  • Higher tax rates on commercial and industrial properties could negatively impact small, locally-owned businesses that operate on thin margins, forcing them to cut wages or close.
  • The classification system could create disparities where renters do not benefit from the tax relief provided to property owners, widening the wealth gap between homeowners and tenants.
For Conservatives
  • Promotes home ownership by allowing for tax advantages for owner-occupied properties, strengthening community stability and traditional investment in private property.
  • Empowers local municipal government to manage its own financial affairs and tax structure without excessive interference or "one size fits all" mandates from the state level.
  • Maintains the requirement that tax rates must be uniform within each class, preventing arbitrary targeting of specific individual property owners by local officials.
  • Grants the government authority to discriminate between different types of property owners, potentially penalizing business owners and real estate investors with higher tax rates.
  • Increases the complexity of the tax code and expands the bureaucracy required to assess and classify properties, moving away from a flat or simple tax structure.
  • Could discourage economic development and business investment in Tiverton if commercial tax rates are set significantly higher than residential rates.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 21 additions

It is enacted by the General Assembly as follows:

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.