Rhode IslandH76612026 Regular SessionHouseWALLET

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

Sponsored By: Michelle E. McGaw (Democratic)

Became Law

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 1 costs, 4 mixed.

One-year higher tax on business equipment

In the year after a revaluation or update, a town may set the rate on all tangible personal property up to twice the rate on any other class. The town must show the Office of Municipal Affairs that this prevents the estimated levy on that class from dropping below last year’s level due to the revaluation. The town needs written approval from that office. This change applies for that one post‑revaluation year.

Limits on gaps between property class rates

The law caps how far class tax rates can differ. Except for Providence, Glocester, and East Greenwich, no class (other than Class 4) can be more than 50% higher than another. Year to year, the percent change to rates must be the same for all classes (again excluding Class 4 and those three towns). These rules limit big shifts in tax burden across classes.

Towns can adopt property tax classes

Cities and towns may adopt a property tax classification plan after a full revaluation or update. They must pass an ordinance to do this. The plan can tax different state-defined classes at different rates. Towns may only use the property classes listed in state law and cannot create new local classes.

Inventory tax rates follow separate law

Wholesale and retail inventory in Class 3 uses a separate statute to set rates. That statute controls instead of the 50% cap and the uniform year‑to‑year change rule. This affects businesses that hold wholesale or retail inventory.

Motor vehicle tax follows separate law

Local taxes on motor vehicles (Class 4) are set by a separate state law. Cities and towns must follow that statute when taxing vehicles.

Sponsors & Cosponsors

Sponsor

Michelle E. McGaw
Democratic • House

Cosponsors

Terri Cortvriend
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 61 • No: 0

House vote • 3/12/2026

LEVY & ASSESSMENT OF LOCAL TAXES PASSAGE