S 2682Property

Taxation - Non-Owner Occupied Property Tax Act

This bill exempts long-held, seasonal summer cottages without winter insulation from the non-owner occupied property tax.

Held for study

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Introduced Feb 27, 2026Committee Senate Finance

Plain-English Summary

This bill creates a new exemption from the "Non-Owner Occupied Property Tax" for certain seasonal family properties. To qualify for this tax break, the property must be a non-insulated, non-winterized structure where the water supply is disconnected from November through April. Additionally, the property must be used by the owner during the summer months, must not be located in a blighted area, and must have been owned by the taxpayer or their family for more than twenty-five years.

For younger readers

This bill helps families keep their summer cabins without paying an extra tax. Sometimes, people have to pay extra money to the government if they own a house they don't live in all the time. This bill says that if a family has owned a summer cottage for a very long time (over 25 years), and it is only used in the summer because it gets too cold in the winter (no heat or running water in winter), they don't have to pay that extra tax.

Who & Where It Applies

Impacted groups

Seasonal property ownersFamilies with legacy summer cottagesMunicipal Tax AssessorsReal estate developersLocal municipal governments

Impacted communities

All

Constitutional & Fiscal Check

There is a minor risk regarding the Equal Protection Clause due to the requirement that the property be owned for more than twenty-five years. Courts generally allow classifications in tax law if there is a rational basis, such as preserving neighborhood stability. However, creating a distinct tax class based solely on the duration of ownership could be challenged as treating similarly situated taxpayers differently without a compelling state interest.

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Prevents gentrification and displacement of long-time local families who might otherwise be forced to sell modest summer camps due to rising tax burdens.
Incentivizes property maintenance and community aesthetics by requiring that the property not be in a blighted or substandard area to qualify for the exemption.
Supports middle-class intergenerational wealth by helping families retain shared recreational properties acquired decades ago, rather than forcing sales to wealthy developers.
Reduces potential municipal tax revenue that could be used to fund public schools, affordable housing, or social safety nets.
Benefits property owners who are wealthy enough to own a second home, rather than focusing financial relief on those struggling to afford primary housing.
Encourages the retention of properties that sit vacant for half the year, rather than incentivizing conversion to year-round housing to address shortages.

For Conservatives

Reduces the tax burden on property owners, allowing families to keep their hard-earned assets without excessive government penalty.
Protects family heritage and tradition by making it affordable to pass down recreational properties through generations.
Respects private property rights by recognizing that seasonal camps shouldn't be taxed the same as year-round investment properties.
Creates an arbitrary distinction based on length of ownership (25 years), penalizing newer property owners who pay more for similar usage.
Maintains government interference by requiring specific usage dates and water disconnection schedules to qualify for tax relief.
Complicates the tax code with niche exemptions for specific groups rather than pursuing broad-based tax reductions for all property owners.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 11 additions

SECTION 1. Section 44-72-5 of the General Laws in Chapter 44-72 entitled "Non-Owner Occupied Property Tax Act" is hereby amended to read as follows: 44-72-5. Exemptions.

(a) This chapter does not supersede any applicable exemption in the general or public laws. In no case shall this chapter apply to, or any tax therefrom be assessed against, any properties or buildings that are rented or were rented for a period of more than one hundred eighty-three (183) days during the prior taxable year and subject to the provisions of chapter 18 of title 34 or any properties or buildings that are rented or were rented and are subject to tax pursuant to chapter 18 of this title.

(b) The tax in this chapter shall not be assessed against a non-insulated, non-winterized property:

(1) In which the water supply to the property is disconnected from November 1 through April 1;

(2) Which is used or occupied by the taxpayer at a minimum of the Saturday before Memorial Day through Labor Day;

(3) Which is not in a blighted or substandard area as defined in § 45-31-8; and

(4) Which has been owned by the taxpayer or taxpayer’s family for more than twenty-five

(25) years.

SECTION 2. This act shall take effect upon passage.