Rhode IslandH50982025 Regular SessionHouseWALLET

AN ACT RELATING TO AGRICULTURE AND FORESTRY -- FORESTRY AND FOREST PARITY ACT .

Sponsored By: Megan L. Cotter (Democratic)

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Sales tax relief for forestry businesses

Qualifying small businesses pay no sales or use tax on equipment and parts used directly in commercial forest product operations. Businesses must meet the law's small-business definition and have no more than 300 employees. The exemption covers up to $2.5 million in equipment and parts per business. Operations averaging at least $50,000 in annual sales qualify for the broader equipment exemption. Below that sales threshold, relief is limited to a motor vehicle exemption covering up to $5,000 in value.

Broader zoning access for forestry businesses

Forest product operations that meet the law's definition are permitted uses in every municipal zoning district. Towns retain authority to prohibit an operation for public health or safety reasons, or to protect wildlife habitat.

State development mission now includes forestry

The Rhode Island Commerce Corporation's economic-development mission now includes preserving, expanding, and developing forestry. This change does not create a specific program, set aside funding, or provide direct payments.

Forestry vehicles need special highway plates

Owners must register qualifying rubber-tire forestry vehicles with Rhode Island's motor vehicle agency for highway use in forestry work. Vehicles receive a special-number farm plate marked for forestry use. Vehicles must be designed for forest product operations, and owners must document eligibility under the law's sales-tax exemption requirements. Covered uses include delivering forest products produced by the forester. Commercial hire for non-forestry work is excluded, except snow plowing directly on the owner's forest land.

New property valuation rules for forestry equipment

Rhode Island places taxable agriculture and forestry machinery and equipment in Class II for property tax assessment. Assessors use that class's depreciation schedule to value the equipment. The provided information does not show whether owners' assessments or tax bills rise or fall.

Sponsors & Cosponsors

Sponsor

Megan L. Cotter
Democratic • House

Cosponsors

Lauren H. Carson
Democratic • House
Michael Chippendale
Republican • House
Susan R. Donovan
Democratic • House
Kathleen A. Fogarty
Democratic • House
Rebecca M. Kislak
Democratic • House
Michelle E. McGaw
Democratic • House
Evan P. Shanley
Democratic • House
June Speakman
Democratic • House
Tina L. Spears
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 144 • No: 0

House vote • 6/18/2025

REGISTRATION OF VEHICLES PASSAGE PASSAGE OF AMENDMENT

Yes: 72 • No: 0