Rhode IslandS20392026 Regular SessionSenate

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

Sponsored By: Meghan E. Kallman (Democratic)

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Bill Overview

Analyzed Economic Effects

23 provisions identified: 21 benefits, 1 costs, 1 mixed.

Legacy $10,000 break for some Brown officers

Estates, persons, and families of the president and professors of Brown University are exempt up to $10,000 per officer. This only applies if the officer claimed and used the exemption before and for a period ending on or after December 31, 1996.

No property tax on bullion

Precious metal bullion valued for its metal content is not taxed as property. This does not cover fabricated metals made into products for industrial, professional, or artistic use.

No property tax on registered boats

Your motorboat is exempt from property tax when you pay the annual state fee required by § 46-22-4. This applies to motorboats as defined in § 46-22-2.

No tax on household goods and home solar

Household furniture, clothing, bedding, books, and similar home items are not taxed. If you add a qualifying fallout shelter, up to $1,500 of the improvement is exempt when it meets state shelter standards. Home renewable energy equipment placed in service after December 31, 2015 is also exempt from local property tax.

Pay aircraft fee, skip property tax

Your aircraft is not taxed as property when you pay the fee required by § 1‑4‑6 to the tax administrator. Paying that fee is the condition for the exemption.

Property tax relief for the infirm or poor

If local assessors find you cannot pay property tax because of infirmity or poverty, your estate is exempt. In Burrillville and West Greenwich, the tax becomes a lien for five years. After five years it is removed, unless you sell, convey, or refinance during that time. If that happens, the lien is due at once. You can appeal the assessor’s judgment to the local board of tax review.

Tax‑exempt government bonds stay untaxed

Bonds and other securities that the U.S. or Rhode Island label as tax‑exempt are not taxed by the state. Holders of those government tax‑exempt bonds do not owe state tax on them.

Charlestown can exempt business property

Charlestown may grant whole or partial property tax exemptions for business tangible or personal property in town. The town council must approve the exemption. There is no set end date in the law.

Cities may exempt open‑space land groups

A city or town council can approve a property tax exemption for land owned, held in trust, or leased by a qualifying open‑space conservation group. The property must be used only to conserve open space. The exemption takes effect only if the local council authorizes it.

No local tax on government and burial land

State‑owned property is not taxed by cities and towns. Federal lands are also off local tax rolls. Property used only for military purposes by certain approved military organizations is exempt. Land used only for burial grounds is exempt.

Relief for veterans, fraternal, volunteer groups

Veterans’ organizations get up to $400,000 of property exempt from tax. In Cranston, the city council can raise that to $500,000. Fraternal groups are exempt when they use all net income for listed charitable purposes and use the property for those activities. Volunteer fire, ambulance, and rescue corps in active service are exempt on their property.

Tax breaks for schools, churches, and charities

Places of worship and free public schools, and up to five acres around them, are exempt while used only for those purposes. Clergy homes owned by a religious group are exempt up to one acre or the zoning minimum, whichever is bigger. Property of qualifying schools and public charities is exempt when used only for those missions; up to one acre of land is covered. Intangible assets of religious or charitable groups are exempt when the income or principal is used for charitable or religious work. In Cranston, tangible property owned and used only for a religious group’s purposes is exempt. In Smithfield, private nonprofit colleges are billed for actual police, fire, and rescue costs starting March 1, 2014 unless they have an agreement with the town.

Tax exemptions for named Rhode Island nonprofits

The law exempts real and personal property for several named nonprofits and parcels. Examples include the Providence Performing Arts Center; Rhode Island Philharmonic; Station Fire Memorial at 211 Cowesett Ave., West Warwick; Pawtucket Youth Soccer at 52 Plain St.; New England Wireless and Steam Museum at 1300 Frenchtown Rd.; Mount Saint Charles Academy parcels in Woonsocket; Steere House in Providence; Comprehensive Community Action; South County Community Action at 415 Tower Hill Rd.; and Tides Family Services properties in West Warwick and 242 Dexter St., Pawtucket. Many require the organization to be a §501(c)(3) nonprofit. The exemptions apply to the named owners and addresses listed in the law.

East Providence nonprofit property tax breaks

The law exempts many East Providence nonprofit properties from local property tax. Examples include Providence Country Day School, St. Mary Academy — Bay View, Heritage Harbor Foundation, Foster Forward, and the amateur radio club at 54 Kelly Avenue. It also covers the Columbus Clubs, Elks Lodge 2337, St. Andrews Lodge No. 39, United Methodist Elder Care, the Cape Verdean Museum, and the first floor at 90 Leonard Avenue owned by Zion Gospel Temple. Pomham Island’s lighthouse parcel is exempt only if a qualified 501(c)(3) owns it and uses it only as a lighthouse. Each exemption applies only to the named owner and the listed addresses or parcels within East Providence.

Providence nonprofit property tax exemptions

AS220’s listed Empire Street and Washington Street parcels in Providence are exempt from local property tax. Habitat for Humanity of Rhode Island — Greater Providence is exempt on property it owns in Providence. Travelers Aid Society of Rhode Island, Union Mall Real Estate Corporation, and related entities tied to the Providence YMCA building are exempt. Meeting Street Center, MSC Realty, Inc., and related entities are exempt for the designated Eddy Street properties.

Tax break for manufacturers’ renewables

Renewable energy resources defined in § 39-26-5 are exempt from tax when used by a manufacturer that meets the law’s definition. The exemption applies as outlined in the manufacturing rules in subsection (a). This lowers tax costs for qualifying manufacturers that use renewable resources.

Tax break for youth service groups

A 501(c)(3) that is affiliated and in good standing with a national, congressionally chartered organization is exempt from property tax if it runs programs for kids ages 6–17. The group must provide recreational, educational, and character‑building activities. The exemption covers the group’s real and personal property.

Tax breaks for manufacturers’ inventory and equipment

Manufacturers do not pay property tax on qualifying in‑state inventory they still own. Machinery and equipment used for manufacturing after December 31, 1974 are exempt for the share used for manufacturing, research, or quality control. You must show the percent of qualifying use. For some items bought after July 1, 1997, a city or town can create an exemption by ordinance, but not for businesses that just relocate within Rhode Island. The Department of Revenue helps assessors apply the definitions, including the rule that manufacturing must be the main business.

Tax relief for community nonprofits

The law exempts property for several named nonprofits across Rhode Island. Examples include Lucy’s Hearth in Middletown; the Artic Playhouse in West Warwick; the Contemporary Theatre Company in South Kingstown (must be a 501(c)(3)); Pet Refuge at 500 Stony Lane in North Kingstown; and Ocean State Community Wellness, Inc. (if a 501(c)(3)). The Stadium Theatre Foundation’s building in Woonsocket is exempt while the foundation owns it. East Bay Community Action Program and its predecessor Self Help, Inc. are exempt if they are qualified 501(c)(3)s. For The Samaritans, Inc. at 67 Park Place, Pawtucket, the city council decides how much of the property is exempt.

Tax relief for pollution, recycling, and hydro gear

Certified water and air pollution‑control facilities are exempt while properly operated; if an exemption would last over 10 years, the city or town must approve it. This covers facilities first placed in operation after April 13, 1970. Hydroelectric generation equipment bought after July 1, 1979 and used by a dam owner or lessee is exempt. Equipment used mainly to recycle materials or treat hazardous waste is exempt when located at or next to the company’s site and the waste is mainly generated by the same company. The environmental agency can certify eligibility and protect trade secrets used only for that order.

Local tax breaks for business equipment

Bristol’s town council can exempt some or all tangible business or personal property to promote growth. Any Rhode Island city, town, or fire district can also create a uniform tangible personal property exemption that follows local tax classification rules and § 44-5-3012.2. Where adopted, businesses pay less local tax on equipment and other tangible items. These local choices can lower municipal tax revenue.

Tenants on hospital or college property pay tax

If a hospital or college property that is usually exempt is leased or used by a non‑exempt tenant, the tenant pays the property tax. The tenant is treated as the owner for tax purposes. This shifts the tax from the exempt institution to the private occupant.

New tax rules for for-profit hospitals

Cities and towns value for-profit hospital real property using the most recent full revaluation or statistical update. In the year a nonprofit converts to for-profit, or a new for-profit facility starts, the assessor sets the initial assessed value as of the most recent assessment date. Owners can appeal to the local assessor and then to the Superior Court business calendar. Cities may enter tax stabilization agreements. Amounts tied to the facility in the conversion year do not count toward the city’s maximum tax levy.

Sponsors & Cosponsors

Sponsor

Meghan E. Kallman
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 75 • No: 1

Senate vote • 6/10/2026

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION Approval of Amendment Passage

Yes: 37 • No: 1