Rhode IslandH60432025 Regular SessionHouseWALLET

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

Sponsored By: Alex S. Finkelman (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 3 benefits, 4 costs, 1 mixed.

Court refunds for excessive property taxes

Beginning with tax year 2026, courts can order tax reductions or refunds for excessive assessments or taxes that are illegal. This covers real estate and tangible or intangible personal property. Refund judgments for paid taxes include penalties paid, interest from the payment date, and costs. The refund rule removes its separate account-filing condition, but does not override court-access limits for missing accounts or local appeals.

More options for property tax court appeals

Beginning with tax year 2026, taxpayers can petition Superior Court within 30 days after receiving notice of the board's written decision. Court review is also available when the board has neither held a hearing nor issued a timely decision, without an approved extension. Existing court petitions can add later assessments of the same real estate before the next revaluation, statistical revaluation, or update. Those amendments are due November 15 of the tax year involved, without repeating local appeals. One petition can also cover parcels that touch and are used together as one site.

Privacy and appeal protections for businesses

Beginning with tax year 2026, only assessment-related personnel can review tangible personal property tax accounts. Taxpayers cannot lose access to assessment review just because a filed property list allegedly has errors or missing information. This protection does not excuse failing to file a required account.

Local property tax appeals can take longer

Beginning with tax year 2026, local boards generally must hold hearings within 90 days and decide within 45 days after hearings close. Assessors can request one or more 90-day global extensions of the December 31 deadline from the Department of Revenue director. Each global extension covers all appeals pending before the local board. Without a global extension, municipalities can request extensions for missed hearing or decision deadlines; boards must notify taxpayers when granted. Boards and taxpayers can also agree to more time, and the Division of Municipal Finance posts global extension notices online.

Property taxpayers risk assessors' court costs

Beginning with tax year 2026, taxpayers in real estate or tangible property cases can owe assessors' court costs. Assessors can recover costs when taxpayers fail to file required accounts or fraudulently hide or omit account information. Costs can also be recovered when the assessment was not excessive and the tax was not illegal. The law does not state the amount.

Required records and steps for tax appeals

Beginning with tax year 2026, certain property appeals require a 12-month rental income-and-expense statement. This covers income-producing residential properties with six or more units, plus commercial, industrial, or mixed-use properties at least 50% leased or available for lease. Missing the required statement can cause denial and bars Superior Court relief. Court access also generally requires filing any required tangible property account and appealing first to the assessor, then the local board. For taxpayers missing those steps, court review is limited to the assessment concerning an illegal tax.

Property reporting deadlines for business owners

Beginning with tax year 2026, tangible personal property taxpayers must report property owned or possessed, valued as of the prior December 31. Reports go to the assessor where the property is located, generally January 2 through January 31. Later filing requires written notice by January 31 and a completed report before March 15; missing notice forfeits that option. Filers must swear the report is complete and accurate to their knowledge before a notary or another authorized official. Illness or absence from Rhode Island allows a written agent appointment to take the oath within the assessor's deadline.

Property assessments stay tied to revaluations

Beginning with tax year 2026, Rhode Island assessors use property values from December 31 of the last revaluation or update year. This includes statistical revaluations. Between those reviews, assessors cannot change assessments solely because market values rise or fall. This limits both market-driven increases and decreases, but does not freeze tax bills. The law applies to valuations as of December 31, 2025, and later, not earlier assessments or pending appeals.

Sponsors & Cosponsors

Sponsor

Alex S. Finkelman
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 62 • No: 8

House vote • 6/10/2025

LEVY & ASSESSMENT OF LOCAL TAXES PASSAGE