AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES .

New housing allows higher local property taxes

Effective upon passage, Rhode Island cities and towns can exceed the property-tax levy growth cap for qualifying new housing. The exception is based on the new homes’ assessed value; it does not require towns to raise taxes. A town must issue more than 10 certificates of occupancy for new residential units during the tax year. At least 10% of the development’s units must be designated low- or moderate-income housing. Eligible homes include single-family and multifamily homes, modular and manufactured homes, and mixed-use buildings with at least 50% residential space. Eligible building conversions must meet zoning and building codes and add housing units under the adaptive reuse law. Homes must be assessed using the same methods and rates as similar local homes. The exception lasts three years after each home’s certificate of occupancy. Towns using it must report unit counts, certificate dates, and taxes levied to the state property valuation division.