Rhode IslandS20732026 Regular SessionSenate

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

Sponsored By: Samuel W. Bell (Democratic)

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Bill Overview

Analyzed Economic Effects

26 provisions identified: 25 benefits, 0 costs, 1 mixed.

Grandfathered $10,000 exemption for Brown officers

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

Property tax relief for estates in hardship

If a decedent could not pay property taxes because of poverty or infirmity, the estate is exempt from the tax. In Burrillville and West Greenwich, the tax becomes a lien for five years and is abated after five years unless the property is sold, conveyed, or the debt is refinanced. Appeals follow the state property tax appeal process.

Exemptions for schools, churches, libraries, charities

Buildings for free public schools and religious worship, plus up to five acres of land, are tax‑exempt when used only for those purposes. Buildings and personal property of schools and public charities are exempt, and up to one acre around them, but not if any profits go to owners or stockholders. Property held for libraries and nonprofit hospitals is exempt when held only for library use or charitable care of the poor. Money and investments of churches and charities are exempt when used for religious or charitable work. Land used only for burial grounds is also exempt.

Tax breaks for veterans, military, and fraternal groups

An incorporated veterans group’s property is exempt up to $400,000 if it is actually used and occupied by the group. In Cranston, the city council can raise that limit to $500,000 by ordinance. Property of military organizations approved by the adjutant general is exempt when used only for military purposes. Property of fraternal groups is exempt when all net income from it funds meeting halls or free education or relief for members. Incorporated volunteer fire and ambulance groups in active service are also exempt on their real estate and equipment.

Tax relief for conservation land and pollution controls

With city or town approval, property owned by open‑space conservation groups is exempt when used only for conservation. Pollution‑control facilities for water or air that meet federal or state requirements are exempt if the environmental agency certifies them and they are operated under that order. Exemptions longer than ten years need local approval. This applies to facilities first placed in service after April 13, 1970.

Manufacturers and clean equipment tax breaks

Manufacturers do not pay local property tax on in‑state inventory that is unsold; retail store inventory is not exempt. Machinery and equipment bought or used after December 31, 1974 are exempt when used only for making products, research, or quality checks; mixed use is prorated and the manufacturer must prove the share. Equipment used mainly for recycling, reuse, or on‑site hazardous‑waste treatment is exempt when it sits at or next to the generating facility; a DEM certification is available and can protect trade secrets. Hydroelectric gear bought after July 1, 1979 is exempt if the owner or lessee uses it at a dam to generate power.

Lower local taxes on boats and shelters

If you pay the annual state motorboat fee, your boat is exempt from local property tax. Homeowners also get up to $1,500 off the taxable value for approved fallout‑shelter improvements that meet state standards. Those shelter upgrades are treated as meeting building and zoning rules.

No local tax on exempt bonds and bullion

Bonds and other securities that are already exempt under U.S. or Rhode Island law are not taxed by cities or towns. Precious metal bullion that is melted or refined and valued by content is also exempt. Metal made into products for industry, art, or professional use is not exempt.

No local tax on home solar and household goods

Homeowners do not pay property tax on qualifying residential renewable energy systems placed in service after December 31, 2015. Household furniture, clothing, bedding, books, and other normal home items are also exempt. This lowers property taxes on that equipment and common household goods.

Local tax breaks for business equipment and clean energy

A city or town council may exempt machinery and equipment bought after July 1, 1997, for a set period by ordinance. The ordinance cannot cover equipment of a business that moved from one Rhode Island town to another. Beginning January 1, 2026, cities, towns, and fire districts may also create a uniform exemption for tangible personal property. Manufacturers do not pay property tax on qualifying renewable energy resources they use, if they meet the law’s definition of a manufacturer.

East Providence fraternal clubs’ property tax exemption

The Columbus Club of East Providence and the Columbus Club of Barrington (for property in East Providence) are exempt on real and personal property they own in East Providence. Lodge 2337 BPO Elks and St. Andrews Lodge No. 39 are also exempt on property they own in East Providence.

Lower taxes on aircraft and rail stations

Aircraft are exempt from local property tax when the owner pays the state fee required by § 1-4-6 to the tax administrator. Starting January 1, 2026, property used by authorized passenger railroad companies for boarding, disembarking, and passenger operations in Central Falls and Pawtucket is also exempt. These exemptions apply only when the owner meets the stated conditions.

No local tax on state or federal property

State‑owned buildings and land are exempt from local property taxes. Land owned by the United States or ceded to it is also exempt. These rules lower the municipal taxable base for those parcels.

Private schools’ property tax relief

Beginning January 1, 2026, several private schools do not pay local property tax on listed parcels. These include Mount Saint Charles Academy parcels in Woonsocket; Providence Country Day School parcels in East Providence; La Salle Academy (Plat 83 Lot 276, Providence); and three Providence schools: Sophia Academy (582 Elmwood Ave.), San Miguel Education Center (525 Branch Ave.), and Community Preparatory School (135 Prairie Ave.). The relief applies only to the named owners and the specified parcels.

Property tax break for youth-serving nonprofits

A 501(c)(3) that is affiliated and in good standing with a congressionally chartered national group, and that serves children ages 6–17 with recreation, education, and character‑building, is exempt on its property.

Property tax breaks for named nonprofits

Beginning January 1, 2026, the law exempts specific nonprofit properties from local property tax at their listed parcels. Examples include Southside Community Land Trust (404 Broad St), WellOne’s tangible personal property (35 Village Plaza Way), Friends of Little Compton Wellness Center (115 East Main Rd), PROJECT Weber/RENEW (if a 501(c)(3)), and Codac, Inc. (45 Royal Little Dr). It also covers Center for Southeast Asians (three Providence parcels), Rhode Island Business Development Institute (220 Smith St), Providence Preservation Society (24 Meeting St), Community MusicWorks (1326 Westminster St), and Pokanoket Management Group trustee property in Bristol used to protect cultural and natural resources. These exemptions apply only to the named owners and the specified parcels and uses.

Property tax relief for arts and historic sites

The Providence Performing Arts Center and the Stadium Theatre in Woonsocket are exempt from property tax. The Rhode Island Philharmonic Orchestra and Music School and the Cape Verdean Museum are exempt if they are 501(c)(3) nonprofits. A Pomham Island parcel used only as a lighthouse by a 501(c)(3) is exempt. The Station Fire Memorial Foundation’s parcel at 211 Cowesett Avenue in West Warwick is exempt.

Property tax relief for key nonprofits and schools

Property tied to acquiring the Providence YMCA Building (including related LLCs or partnerships) is exempt. Meeting Street Center and its related entities are exempt on the designated National Center of Excellence properties in Providence. St. Mary Academy — Bay View is exempt on its East Providence property. East Bay Community Action Program (and predecessor Self Help, Inc.) is exempt if it is a 501(c)(3). United Methodist Elder Care’s property in East Providence is exempt.

Religious property tax relief in Cranston and East Providence

Tangible personal property owned and used only by a religious organization in Cranston is exempt from property tax. The first floor at 90 Leonard Avenue in East Providence owned by Zion Gospel Temple, Inc. is also exempt.

Tax break for clergy housing

Homes owned by or held in trust for a religious group and actually used by its officiating clergy are exempt from local property tax. The land covered is up to one acre or the local minimum lot size, whichever is larger. In Charlestown, the town may also exempt convents, nunneries, or retreat centers as described.

Tax relief for arts and museums

Beginning January 1, 2026, several arts and cultural sites do not pay local property tax. This includes the New England Wireless & Steam Museum (East Greenwich); Artic Playhouse (1249 Main St., West Warwick); Contemporary Theatre Company (321 Main St., South Kingstown); Heritage Harbor Foundation (1445 Wampanoag Trail, Suites 103 and 201, East Providence); and the Cape Verdean Museum Exhibit (617 Prospect St., Pawtucket). Each exemption applies only to the named owner and the listed site.

Tax relief for family services

Beginning January 1, 2026, many family and social‑service nonprofits do not pay local property tax on listed sites. This covers Comprehensive Community Action; South County Community Action; Tides Family Services (West Warwick and 242 Dexter St., Pawtucket); Lucy’s Hearth (Middletown); Habitat for Humanity of RI—Greater Providence (Providence); Foster Forward (East Providence and 16 North Bend St., Pawtucket); Sojourner House (386 Smith St. and 1570 Westminster St., Providence); Little Flower Home (304 Hooper St., Tiverton); and Johnnycake Center Realty parcels in South Kingstown. The exemption applies only to the named owner and the listed parcels. Some entries require the owner to be a qualifying 501(c)(3).

Tax relief for health nonprofits

Starting January 1, 2026, several health and behavioral‑health nonprofits do not pay local property tax on listed sites. This includes Steere House (Providence), Providence Community Health Centers (Providence), Ocean State Community Wellness, the Rhode Island Public Health Foundation (one Providence property), and the Brain Injury Association of Rhode Island (1017 Waterman Ave., East Providence). The Samaritans, Inc. at 67 Park Place in Pawtucket is exempt to the extent set by the Pawtucket city council. The exemption applies only to the named owners and addresses.

Tax relief for local clubs and groups

Starting January 1, 2026, many local clubs and community groups do not pay local property tax on listed sites. Examples include American Legion Post 10 (830 Willet Ave., East Providence), Holy Rosary Band Society (328 Taunton Ave., East Providence), Old and Ancient Rowers Society (166 Walmsley Ln., North Kingstown), Little Compton Game Club (83 and 88 John Dyer Rd., Little Compton), and the Manissean Tribal Council (New Shoreham). The law also exempts Associated Radio Amateurs (54 Kelly Ave., East Providence), Pawtucket Youth Soccer (52 Plain St.), Pet Refuge (500 Stony Ln., North Kingstown), and the Wildlife Rehabilitators Association (Assessor’s Map Plat 5, Lot 1). Each exemption applies only to the named owner and site, and in some cases only while the group owns the property.

Towns can exempt business property

Charlestown and Bristol can pass local ordinances to exempt some or all tangible business or personal property from local taxes. The goal is to promote business growth. Businesses get relief only if the town council adopts an exemption by formal action.

New tax rules for hospitals and colleges

When a city or town taxes a for‑profit hospital, the value comes from the most recent full revaluation or update. In the year a nonprofit hospital becomes for‑profit, the assessor sets an initial value as of the most recent assessment date, and the owner can appeal locally and to the Superior Court business calendar. Any amounts due under a tax‑stabilization deal for that year do not count toward the town’s state levy limit. If a nonexempt tenant uses part of an otherwise exempt hospital or college property, that part is taxable and the tenant pays as the deemed owner. In Smithfield, unless there is a written agreement, the town bills a private nonprofit college for actual police, fire, and rescue costs, starting March 1, 2014.

Sponsors & Cosponsors

Sponsor

Samuel W. Bell
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 74 • No: 0

Senate vote • 5/12/2026

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION Passage as Amended

Yes: 38 • No: 0