Rhode IslandS21232026 Regular SessionSenate

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

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Bill Overview

Analyzed Economic Effects

38 provisions identified: 35 benefits, 1 costs, 2 mixed.

Aircraft and boats skip tax with fee

Aircraft and motorboats are exempt from property tax after you pay the required state fee. For aircraft, the state aircraft fee must be paid. For motorboats, the annual state boat fee must be paid.

Household furniture and clothes not taxed

Common home items are not taxed as property. This covers furniture, clothing, bedding, books, and similar household goods. Most households do not pay property tax on these items.

No property tax on home renewables

Home renewable energy systems and related equipment are exempt from property tax. The system must fit the state’s definition and be placed in service after December 31, 2015.

Cities can cut business equipment taxes

Your city or town can pass an ordinance to exempt machinery bought after July 1, 1997, for a set period. Local leaders can also create uniform exemptions for tangible personal property. Exemptions must be applied the same way to all and follow tax‑classification rules, and they cannot reward businesses that relocate within the state.

Conservation land and lighthouse property tax-free

Property used only for open‑space conservation by qualifying nonprofits can be tax‑exempt if the city or town council approves it. Bristol properties of the Pokanoket Tribe Land Trust’s trustee are exempt when used to preserve natural, cultural, and historical resources. The Pomham Island parcel is tax‑exempt when a qualified 501(c)(3) owns it and uses it only as a lighthouse.

Government and military property not taxed

State of Rhode Island property and federal lands are not subject to local property tax. Property used only for military purposes by approved National Guard or similar organizations is also tax‑exempt, with approval by the adjutant general.

Religious, school, and charity properties tax-free

Buildings used only for free public schools or worship are tax‑exempt, plus up to five acres of land. Homes owned by religious groups and used by officiating clergy are exempt, with a lot limit of one acre or the zone’s minimum lot size, whichever is greater. In Cranston, tangible personal property used only for religious purposes is also exempt. Property held only for libraries, aid to the poor, or nonprofit hospitals is tax‑exempt, and intangible assets are exempt when their funds go to charitable or religious uses. Land used only for burial grounds is tax‑exempt.

Targeted property tax breaks for named nonprofits

The law exempts property owned by several named nonprofits and parcels, including Friends of Little Compton Wellness Center, PROJECT Weber/RENEW, Codac, Providence Preservation Society, and the Center for Southeast Asians. It also exempts properties for the Rhode Island Business Development Institute, Blackstone Valley Advocacy Center, Providence Performing Arts Center, Travelers Aid/YMCA building entities, Meeting Street’s Eddy Street campus, and Woonsocket’s Stadium Theatre. Each exemption applies only to the listed owner and parcel.

Tax relief for veterans and volunteer groups

Incorporated veterans’ organizations that use and occupy their property get up to $400,000 tax‑exempt; in Cranston, the city may raise it to $500,000. Fraternal groups get exemptions when property income is used only for charitable facilities or to help needy members. Incorporated volunteer fire, ambulance, and rescue corps in active service are exempt on their real and personal property.

Lower taxes on factory inventory and machines

Manufacturers do not pay property tax on raw materials, work‑in‑process, and unsold finished goods. Machines and equipment used for manufacturing, R&D, or quality control are exempt to the extent of qualifying use. You must show the percent of qualifying use for partial exemptions. A business qualifies as a manufacturer if more than half of its gross receipts come from manufacturing in Rhode Island.

No property tax on bonds and bullion

Bonds and other securities that law makes tax‑exempt are not taxed as property. Precious metal bullion that is melted or refined and valued by metal content is exempt; fabricated items are still taxable.

Tax breaks for clean and hydro equipment

Pollution‑control facilities approved by the DEM are tax‑exempt while they follow the DEM order; exemptions longer than 10 years need city or town approval and only apply to facilities first used after April 13, 1970. Equipment used mainly for recycling or for treating a company’s own hazardous waste at or next to its site is exempt; a DEM certification order confirms eligibility. Hydroelectric power equipment bought after July 1, 1979, and used by a dam owner or lessee to generate power is exempt.

Tenants of exempt property must pay tax

If you lease or use property that would otherwise be tax‑exempt, and you are not tax‑exempt, you owe the property tax. The law treats the non‑exempt tenant as the owner for tax purposes.

Nonprofit school property exempt; Smithfield bills services

Buildings and property owned by corporations and used only for education are tax‑exempt. Up to one acre of land is also exempt, but no exemption applies if any income or profits are paid to owners or stockholders. In Smithfield, a private nonprofit college must pay the town’s actual police, fire, and rescue costs unless it signs a memorandum of agreement. That billing began March 1, 2014.

Home tax break for fallout shelters

Up to $1,500 of the value of a qualifying fallout shelter improvement is excluded from property tax. The work must meet Rhode Island Emergency Management Agency shelter standards. These projects are treated as meeting building codes and zoning. The exemption is one-time and capped at $1,500.

Bristol and Charlestown business tax breaks

The Bristol and Charlestown town councils can vote to exempt all or part of business tangible or personal property from local tax. This aims to promote business growth. Your actual savings depend on local council action.

Tax break for manufacturers’ renewables

Renewable energy resources used by qualifying manufacturers are exempt from property tax. The business must meet the state’s definition of a manufacturer.

East Providence nonprofit property tax breaks

East Providence exempts property owned by several named nonprofits and schools. Examples include St. Mary Academy—Bay View, Providence Country Day School, the Cape Verdean Museum, and Foster Forward. It also covers clubs and lodges, and a first‑floor space at 90 Leonard Avenue for Zion Gospel Temple. Suites 103 and 201 at 1445 Wampanoag Trail for Heritage Harbor and 54 Kelly Avenue for the Associated Radio Amateurs are included. These listed properties no longer pay local property tax.

North Kingstown nonprofit property tax breaks

North Kingstown exempts several named nonprofit properties. These include South County Community Action at 415 Tower Hill Road and Pet Refuge at 500 Stony Lane. La Salle Academy’s parcel at 7450 Post Road and the Wildlife Clinic parcel on Tower Hill Road are also exempt.

Providence nonprofit property tax breaks

Providence exempts property of several named nonprofits. These include Steere House, Habitat for Humanity of Greater Providence, and Providence Community Health Centers. Southside Community Land Trust’s non‑commercial property at 404 Broad Street is also exempt. The listed parcels do not pay local property tax.

Tax break for youth programs

Qualified youth nonprofits do not pay property tax. The group must be a 501(c)(3), be in good standing with a national, congressionally chartered organization, and run programs for ages 6 to 17.

Tax relief for community action groups

East Bay Community Action Program (and predecessor Self Help, Inc.) and Comprehensive Community Action Program are exempt from property tax. Each organization must be a qualifying 501(c)(3).

No local tax on passenger rail sites

Railroad property used for passenger service in Central Falls and Pawtucket is exempt from local property tax. The rule covers land and equipment a railroad acquires or leases for boarding, exits, and support services. It only applies to railroads authorized by the Rhode Island Public Utilities Commission. Local tax collectors do not bill these properties while they are used for passenger service.

New valuation rules for for-profit hospitals

When a nonprofit hospital becomes for-profit, the assessor values the property as of the most recent assessment date that year. The hospital can appeal to the local assessor and directly to the Rhode Island Superior Court business calendar. A city or town may enter a tax stabilization deal for that year. Money due under that deal does not count toward the town’s maximum tax levy that year.

Legacy $10,000 exemption for Brown officers

Estates, persons, and families of Brown University’s president and professors can get up to $10,000 in property value exempt. This applies only if the officer claimed and used the exemption before December 31, 1996.

Property tax relief for indigent estates

Local assessors can exempt the estate of a person who cannot pay because of poverty or infirmity. In Burrillville and West Greenwich, the tax becomes a five‑year lien that is wiped out after five years. If the property is sold or refinanced in those five years, the lien is due at once.

East Greenwich museum tax break

The New England Wireless and Steam Museum’s property at 1300 Frenchtown Road is exempt from local property tax. The museum must be a 501(c)(3).

Middletown housing nonprofit tax break

Lucy’s Hearth, a nonprofit in Middletown, is exempt from local property tax on its property in town.

Ocean State Wellness property tax break

Ocean State Community Wellness, a qualified tax‑exempt nonprofit, is exempt from property tax on its listed real property as set out in law.

Pawtucket nonprofit property tax breaks

Pawtucket exempts the Youth Soccer Association’s property at 52 Plain Street. The Samaritans’ property at 67 Park Place can be exempt to the extent set by the Pawtucket City Council.

Rhode Island Philharmonic tax break

The Rhode Island Philharmonic Orchestra and Music School is exempt from property tax while it remains a 501(c)(3).

South Kingstown theater tax break

The Contemporary Theatre Company, a 501(c)(3), is exempt from property tax at 321 Main Street in South Kingstown.

Tides Family Services tax break

Tides Family Services’ properties in West Warwick and at 242 Dexter Street in Pawtucket are exempt from local property tax.

West Warwick nonprofit tax breaks

West Warwick exempts the Station Fire Memorial Foundation’s property at 211 Cowesett Avenue. The Arctic Playhouse at 1249 Main Street is also exempt. These listed properties no longer pay local property tax.

Woonsocket school property tax break

Mount Saint Charles Academy’s listed parcels in Woonsocket are exempt from property tax. The exemption applies only to the assessor lots named in the law.

Property tax break for nonprofit schools

Three nonprofit schools in Providence do not pay local property tax at their listed addresses. They are Sophia Academy (582 Elmwood Ave), San Miguel Education Center (525 Branch Ave), and Community Preparatory School (135 Prairie Ave). The exemption only covers those properties and only while each school owns them.

Tax relief for community and cultural groups

Named community, cultural, veterans, tribal, and club properties are exempt from local property tax. Examples include American Legion Post 10 (830 Willett Ave, East Providence), Holy Rosary Band Society (328 Taunton Ave, East Providence), Cape Verdean Museum (617 Prospect St, Pawtucket), the Manissean Tribal Council property in New Shoreham, the Old and Ancient Rowers Society (166 Walmsley Ln, North Kingstown), and Little Compton Game Club (83 and 88 John Dyer Rd, Little Compton). These exemptions only cover the listed parcels and only while each group owns them.

Tax relief for health and social nonprofits

Several health and social service nonprofits get property tax exemptions on named parcels. This includes Foster Forward (16 North Bend St, Pawtucket), Sojourner House (386 Smith St and 1570 Westminster St, Providence), Brain Injury Association of RI (1017 Waterman Ave, East Providence), Johnnycake Center Realty parcels in South Kingstown, and Little Flower Home (304 Hooper St, Tiverton) if it keeps 501(c)(3) and state nonprofit status. WellOne in North Scituate is exempt on tangible personal property at 35 Village Plaza Way. The Rhode Island Public Health Foundation is exempt for one property in Providence. Each exemption only applies to the listed property and as long as the named nonprofit owns it.

Sponsors & Cosponsors

Sponsor

Lori Urso
Democratic • Senate

Cosponsors

Jonathon Acosta
Democratic • Senate
Robert Britto
Democratic • Senate
Meghan E. Kallman
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 176 • No: 6

Senate vote • 6/11/2026

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION In Concurrence

Yes: 38 • No: 0

House vote • 6/10/2026

PROPERTY SUBJECT TO TAXATION PASSAGE

Yes: 64 • No: 6

Senate vote • 5/19/2026

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION Passage

Yes: 37 • No: 0