All Roll Calls
Yes: 105 • No: 1
Rhode IslandH70462026 Regular SessionHouse
AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION .
Sponsored By: Susan R. Donovan (Democratic)
Became Law
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Bill Overview
Analyzed Economic Effects
18 provisions identified: 15 benefits, 1 costs, 2 mixed.
Home goods and renewables stay untaxed
Normal household items like furniture, clothing, bedding, white goods, and books are exempt from property tax. Residential renewable energy equipment placed in service after December 31, 2015, is also tax‑exempt. Up to $1,500 of fallout‑protection home improvements are exempt if they meet Rhode Island Emergency Management Agency standards.
Legacy $10,000 break at Brown
An exemption of up to $10,000 applies to the estates, persons, and families of the president and professors of Brown University, but only for those who claimed and used this exemption through December 31, 1996. The cap is $10,000 per officer. No new users qualify beyond that prior‑use rule.
Motorboats skip property tax with fee
Motorboats are exempt from local property tax when the annual state fee in §46-22-4 is paid. Pay the fee, and you owe no local property tax on the boat.
Tax breaks for aircraft and bullion
Aircraft are exempt from property tax when the owner pays the required annual fee under § 1‑4‑6. Precious‑metal bullion is exempt when value depends on metal content, not form; fabricated metal for specific uses is not exempt. U.S. and Rhode Island tax‑exempt government bonds remain untaxed under this law.
Bristol and Charlestown business tax option
Bristol and Charlestown can, by formal town council vote, exempt all or part of business tangible or personal property from local tax. These local options only apply if the council adopts them. When adopted, eligible local businesses pay less in property tax on their tangible property.
Nonprofit, school, and public land exemptions
State‑owned and U.S.‑owned land is tax‑exempt. Free public schools and houses of worship, plus up to five acres around them, and clergy homes (up to one acre or the zoning minimum) are exempt when used only for that purpose. Nonprofit schools and incorporated charities, burial grounds, libraries, nonprofit hospitals aiding the poor, veterans’ groups, fraternal groups, and volunteer fire/ambulance corps get exemptions when property is used for their missions; veterans’ group exemptions are capped at $400,000 (Cranston may allow up to $500,000). Conservation groups may receive exemptions if the city or town council authorizes them and the land is used only for open space. Property must be used exclusively for the exempt purpose, and profits cannot be shared with owners or stockholders.
Targeted exemptions for named nonprofits
Several named nonprofits and cultural sites are exempt from property tax, including the Providence Performing Arts Center, Meeting Street Center, the Stadium Theatre, and St. Mary Academy — Bay View. East Bay Community Action and some clubs and lodges in East Providence are also exempt, as are entities formed to acquire the Providence YMCA Building. In Cranston, tangible personal property of religious groups is exempt when used only for their purposes. A Pomham Island parcel is exempt while a qualifying 501(c)(3) owns it and uses it only as a lighthouse. These breaks apply only while owners meet the listed nonprofit or use conditions.
Property tax break for manufacturers’ renewables
Manufacturers do not pay local property tax on qualifying renewable energy resources defined in §39-26-5 when used in manufacturing. This lowers the cost of adding renewable systems at factories.
Tax breaks for manufacturers' machinery
The law exempts manufacturing machinery and equipment used only in manufacturing, R&D, or quality checks if acquired or used after December 31, 1974. If equipment has mixed use, the manufacturing share is exempt, and the business must prove the percentage. It defines who counts as a manufacturer and what counts as inventory for these rules. Cities and towns may also pass ordinances to exempt machinery and equipment bought after July 1, 1997, but not to favor firms that relocate within Rhode Island. The Department of Revenue helps local assessors apply these definitions.
Tax relief for pollution and energy gear
Property used mainly to control air or water pollution is tax‑exempt when it meets federal or state requirements and is approved by the DEM director. Exemptions longer than 10 years need city or town approval. Hydroelectric generation equipment bought after July 1, 1979, is exempt when used at a dam the owner or lessee controls. Tangible property used mainly for recycling or on‑site hazardous‑waste treatment is also exempt; a DEM certification order confirms eligibility and protects trade secrets.
Hardship property tax relief with lien
Local assessors can exempt the estate of a person who cannot pay property tax because of infirmity or poverty. In Burrillville and West Greenwich, the unpaid tax becomes a five‑year lien that is erased at the end of five years. If the property is sold, conveyed, or refinanced during those five years, the lien is due at once. You can appeal the assessor’s decision to the local board of tax review.
East Providence tax breaks for named nonprofits
The law exempts property owned by specific nonprofits in East Providence from local property tax. Examples include St. Andrews Lodge No. 39, United Methodist Elder Care, Zion Gospel Temple’s first floor at 90 Leonard Ave, the Cape Verdean Museum, Foster Forward, the Associated Radio Amateurs at 54 Kelly Ave, Providence Country Day School (listed parcels), and the Heritage Harbor Foundation (listed suites). These named properties now owe no local property tax.
Property tax break for youth groups
Qualified 501(c)(3) youth groups that are tied to a congressionally chartered national organization do not pay property tax. They must be in good standing, follow the national group’s standards, and run programs for kids ages 6 to 17.
Tax exemptions for arts and education nonprofits
The law exempts property for several named arts, culture, and education nonprofits. Examples include the RI Philharmonic Orchestra and Music School, the New England Wireless & Steam Museum (1300 Frenchtown Rd), Mount Saint Charles Academy (listed lots), the Contemporary Theatre Company (321 Main St), the Artic Playhouse (1249 Main St), Blithewold (101 Ferry Rd), the Pawtucket Youth Soccer Association (52 Plain St), and the Station Fire Memorial (211 Cowesett Ave). These named properties do not owe local property tax.
Tax exemptions for social service nonprofits
The law exempts property for several named social service, health, and animal‑welfare nonprofits. Examples include Comprehensive Community Action Program; South County Community Action (415 Tower Hill Rd); Steere House in Providence; Tides Family Services in West Warwick and at 242 Dexter St, Pawtucket; Lucy’s Hearth in Middletown; Habitat for Humanity of Rhode Island—Greater Providence; The Samaritans at 67 Park Place in Pawtucket (as the City Council allows); Pet Refuge at 500 Stony Lane; and Ocean State Community Wellness. These named properties do not owe local property tax as described in the law.
Towns can exempt business equipment
Cities, towns, and fire districts can vote to exempt tangible personal property, like business equipment, from local property tax. The exemption must be applied the same way for everyone and follow local tax class rules and §44-5-2412.2.25. This can lower local tax bills for businesses in places that adopt it.
Non‑exempt tenants pay tax on exempt property
Property that is exempt by charter stays exempt for the owner. But if a non‑exempt tenant leases or uses it, that tenant is taxed as if the owner. Parent companies, operators, managers, or subsidiaries can be liable for the tax.
New valuation rules for for‑profit hospitals
Towns value for‑profit hospital property using the most recent full revaluation or statistical update. When a nonprofit hospital converts or a new for‑profit starts, the assessor sets an initial value as of the most recent assessment date. Hospitals can appeal locally and then directly to Rhode Island Superior Court (Business Calendar). Cities and towns may sign stabilization agreements, and amounts due in the conversion year under those agreements do not count toward the town’s maximum tax levy.
Sponsors & Cosponsors
Sponsor
Susan R. Donovan
Democratic • House
Cosponsors
June Speakman
Democratic • House
Roll Call Votes
Senate vote • 6/11/2026
RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION In Concurrence
Yes: 37 • No: 0
House vote • 2/3/2026
PROPERTY SUBJECT TO TAXATION PASSAGE
Yes: 68 • No: 1
Actions Timeline
Effective without Governor's signature — Chapter 312
6/24/2026GovernorTransmitted to Governor
6/16/2026GovernorSenate passed in concurrence
6/11/2026SenatePlaced on Senate Calendar (06/11/2026)
6/11/2026SenateCommittee recommends passage in concurrence
6/11/2026Scheduled for consideration (06/11/2026)
6/9/2026Meeting postponed (05/21/2026)
5/20/2026Scheduled for consideration
5/15/2026Referred to Senate Housing and Municipal Government
2/6/2026SenateHouse read and passed
2/3/2026HousePlaced on House Calendar (02/03/2026)
1/30/2026HouseCommittee recommends passage
1/27/2026Scheduled for consideration (01/27/2026)
1/23/2026Committee recommended measure be held for further study
1/20/2026Scheduled for hearing and/or consideration (01/20/2026)
1/16/2026Introduced, referred to House Municipal Government & Housing
1/9/2026House
Bill Text
H7046 - As Introduced
1/9/2026
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