Rhode IslandS20362026 Regular SessionSenateWALLET

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION .

Sponsored By: Linda L. Ujifusa (Democratic)

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29 provisions identified: 26 benefits, 1 costs, 2 mixed.

Home renewable energy not taxed

Home renewable energy systems and their equipment are exempt from property tax if placed in service after December 31, 2015. The system must meet the law’s definition of renewable energy resources.

Household goods and shelter work exempt

Household furniture, clothing, bedding, books, and similar items in a normal household are not taxed. Work to add fallout‑shelter protection is exempt up to $1,500 if it meets Rhode Island Emergency Management standards. If an assessor decides a person cannot pay because of poverty or infirmity, their estate is exempt; in Burrillville and West Greenwich, that tax becomes a five‑year lien that is forgiven if not sold or refinanced in that period.

No local tax on some investments

Federal or Rhode Island bonds that are exempt by those governments are not subject to local property tax. Precious metal bullion that is melted or refined and valued for its metal content is also not taxed; fabricated items for industrial, professional, or artistic use are not exempt.

No property tax on planes and boats

Aircraft are exempt from local property tax when the owner pays the fee under § 1‑4‑6. Motorboats are exempt when the owner pays the annual fee under § 46‑22‑4. Keep your fees current to keep the exemption.

Property tax relief for veterans groups

Veterans organizations that use and occupy their property can exempt up to $400,000 of value from local property tax. In Cranston, the city council may set the cap up to $500,000. Real estate owned by approved National Guard, naval militia, or similar military organizations is also exempt when used only for military purposes. Those groups must own the land, use it exclusively for military purposes, and be approved by the adjutant general.

Charlestown and Bristol can exempt business property

Charlestown and Bristol can vote to exempt some or all business tangible or personal property from local property tax. Relief applies only if the town council formally authorizes it. Terms and coverage depend on each town’s action.

Charity and community properties not taxed

Intangible assets of charities are exempt when the income or principal is used for their charitable or religious purposes. Land used only for burial is exempt. Property held for incorporated libraries, nonprofit hospitals, and for helping the poor is exempt when used only for that purpose. Fraternal groups are exempt when all net income supports listed charitable uses. Volunteer fire, ambulance, and rescue corps in active service are exempt. Conservation land owned by qualifying nonprofits can be exempt if the city or town council approves and the land is used only for conservation.

Churches, clergy homes, and public schools exempt

Buildings used only for free public schools or for religious worship are not taxed. Their land is exempt up to five acres. Homes owned by a religious group and used by its officiating clergy are exempt up to one acre or the zone’s minimum lot size (whichever is greater). In Charlestown, the exemption also covers convents, nunneries, and retreat centers used by the order.

Government-owned land is tax exempt

Property owned by Rhode Island and land owned by the United States are exempt from local property tax. Local assessors exclude state and federal land from the tax roll.

Clean energy gear for manufacturers tax free

Hydroelectric power equipment bought after July 1, 1979 by a dam owner or lessee is exempt from property tax. Renewable energy resources used by entities that qualify as manufacturers are also exempt. These rules lower ongoing tax costs for qualifying clean‑energy installations.

Factory gear and inventory not taxed

Manufacturers do not pay property tax on in‑state manufactured inventory that is not yet sold, leased, or traded. To count as a manufacturer, more than 50% of your gross receipts must come from in‑state manufacturing. Machinery and equipment used for manufacturing, R&D, or quality checks are exempt to the percent of qualifying use after December 31, 1974. You must show the usage percent. Towns may also pass ordinances to fully or partly exempt some machinery bought after July 1, 1997, but not for businesses that moved from another RI town.

Housing and community groups get tax relief

Community and housing groups receive local property tax exemptions. Covered nonprofits include Comprehensive Community Action Program; South County Community Action at 415 Tower Hill Road (North Kingstown); Habitat for Humanity of Rhode Island—Greater Providence (properties in Providence); the Center for Southeast Asians at three Providence parcels; the Rhode Island Business Development Institute at 220 Smith Street (Providence); and the Associated Radio Amateurs at 54 Kelly Avenue (East Providence). These exemptions apply to the specific groups and parcels listed in the law.

Recycling and pollution control gear exempt

Equipment used mainly to recycle, reuse, or recover materials, or to treat hazardous waste the taxpayer mainly generates at or next to its own facility, is exempt from property tax. You can get a conclusive certification from the DEM director; trade secrets are protected. Pollution‑control facilities approved by DEM are exempt while operated in compliance; exemptions over 10 years need local approval. The pollution‑control exemption applies only to facilities first placed in operation after April 13, 1970.

Stadium Theatre gets Woonsocket tax break

The Stadium Theatre Performing Arts Centre building in Monument Square, Woonsocket, is exempt from property tax while it is owned by the Stadium Theatre Foundation, a Rhode Island nonprofit. The exemption lasts only as long as that nonprofit owns the building.

Tax breaks for arts and historic sites

The law exempts many named arts and history properties from local property tax. Examples include the Providence Performing Arts Center, the Rhode Island Philharmonic Orchestra and Music School, and the New England Wireless and Steam Museum. It also exempts the Pomham Island lighthouse parcel if a 501(c)(3) owns it and uses it only as a lighthouse. Other listed sites include the Artic Playhouse, Contemporary Theatre Company, Heritage Harbor Foundation, Providence Preservation Society, Blithewold, and the Station Fire Memorial parcel. These exemptions apply only to the organizations and parcels named in the law.

Tax breaks for East Providence nonprofits

Nonprofit properties in East Providence owned by several named groups do not pay local property tax. This includes St. Mary Academy — Bay View, East Bay Community Action Program (only while it is a 501(c)(3)), Columbus Club groups, Lodge 2337 BPO Elks, St. Andrews Lodge No. 39, United Methodist Elder Care, and the Cape Verdean Museum Exhibit. The law also exempts only the first floor at 90 Leonard Avenue when it is owned by Zion Gospel Temple. These exemptions apply to the listed owners and locations in East Providence.

Tax relief for health and wellness nonprofits

Health and wellness nonprofits receive local property tax exemptions. Covered groups include Steere House (Providence), The Providence Community Health Centers, WellOne’s tangible personal property in North Scituate, Friends of Little Compton Wellness Center, CODAC at 45 Royal Little Drive (Providence), and PROJECT Weber/RENEW (while it is a 501(c)(3)). Ocean State Community Wellness is also listed for exemption as described in the law. These exemptions apply only to the named organizations and locations.

Youth and family nonprofits pay less tax

The law exempts several youth and family service nonprofits from local property tax. A 501(c)(3) youth group tied to a congressionally chartered national group and serving ages 6–17 qualifies. Pawtucket Youth Soccer at 52 Plain Street, Tides Family Services (West Warwick and 242 Dexter Street in Pawtucket), Lucy’s Hearth in Middletown, and Foster Forward in East Providence are exempt. The Samaritans at 67 Park Place in Pawtucket receive an exemption in the amount set by the Pawtucket city council. These exemptions apply to the organizations and addresses listed in the law.

Nonprofit school property stays tax-free

Buildings and personal property used only for education by nonprofit schools and charities are exempt from property tax. The land under them is exempt up to one acre. No exemption applies if any income or profit is paid to owners or stockholders. In Smithfield, a private nonprofit college is billed for actual police, fire, and rescue costs starting March 1, 2014 unless it has a written agreement with the town.

Cities can exempt business equipment

A city, town, or fire district can create a local exemption for tangible personal property, like business equipment. The exemption must be set by the local governing body, applied the same way to all that qualify, and follow Rhode Island tax‑classification rules. This lets communities lower these taxes for businesses if they choose.

Named nonprofits get property tax exemptions

Many named nonprofits have their listed properties exempt from local property tax. Examples include American Legion Post 10 (East Providence), Sojourner House (two Providence sites), Foster Forward (Pawtucket), Johnnycake Center Realty (South Kingstown parcels), Cape Verdean Museum (Pawtucket), Little Flower Home (Tiverton, must keep 501(c)(3) status), and several nonprofit schools in Providence. Other named groups in Providence, East Providence, North Kingstown, New Shoreham, and Little Compton also qualify at the specified addresses.

Cranston tax break for religious groups’ property

In Cranston, tangible personal property owned by a religious organization and used only for its religious purposes is exempt from local property tax. The exemption applies only within Cranston and only to property used exclusively for the organization’s purposes.

Passenger rail facilities pay no property tax

Property in Central Falls and Pawtucket used to board and drop off passengers and to support passenger rail operations is exempt from local property tax. The property must be acquired or leased by a railroad authorized by the Rhode Island Public Utilities Commission to provide passenger service. The exemption covers both real estate and tangible personal property used for passenger operations.

Private schools get local tax relief

The law exempts specific parcels owned by three private schools from local property tax. Mount Saint Charles Academy (several Woonsocket lots), Providence Country Day School (two East Providence lots), and La Salle Academy’s parcel at 7450 Post Road in North Kingstown are covered. The exemption applies only to the exact lots listed in the law.

Tax breaks for animal care and land trusts

Animal care and land stewardship groups get local tax relief. Pet Refuge at 500 Stony Lane (North Kingstown) and the Wildlife Clinic of Rhode Island at 32865 Tower Hill Road (North Kingstown) are exempt. Southside Community Land Trust’s non‑commercial property at 404 Broad Street (Providence) is exempt. Land held by Pokanoket Management Group in Bristol is exempt when used directly to preserve and protect ancestral natural and cultural resources.

YMCA and Meeting Street tax relief

The law exempts property tied to two named projects in Providence. Real and personal property of the Travelers Aid Society, Union Mall Real Estate Corporation, and related entities formed to acquire the Providence YMCA Building is exempt. Meeting Street Center, MSC Realty, and related entities formed to acquire the Meeting Street National Center of Excellence properties on Eddy Street are also exempt. These exemptions apply only to the named entities and the described acquisitions.

Tenants on exempt property pay taxes

If a non‑exempt person or business leases or uses space owned by a tax‑exempt hospital or college, the tenant is taxed as if the owner. The property tax bill shifts to the tenant for the space they occupy.

Tax rules for for-profit hospitals

When a nonprofit hospital becomes for‑profit or a new for‑profit hospital opens, the assessor sets an initial value as of the most recent assessment date. After that, the most recent full revaluation or update applies. The hospital can appeal locally and directly to the Rhode Island Superior Court business calendar. A city or town may sign a tax‑stabilization deal, and amounts from that deal in the conversion year do not count toward the town’s maximum tax levy.

Grandfathered Brown officer exemption continues

The estates, persons, and families of the president and professors of Brown University keep up to a $10,000 property exemption per officer only if they claimed and used it before and through December 31, 1996. New claims are not allowed.

Sponsors & Cosponsors

Sponsor

Linda L. Ujifusa
Democratic • Senate

Cosponsors

Walter S. Felag Jr.
Democratic • Senate
Pamela J. Lauria
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 174 • No: 3

House vote • 6/10/2026

PROPERTY SUBJECT TO TAXATION PASSAGE IN CONCURRENCE PASSAGE OF AMENDMENT

Yes: 70 • No: 0