Rhode IslandS31552026 Regular SessionSenate

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

Sponsored By: Brian J. Thompson (Democratic)

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Bill Overview

Analyzed Economic Effects

24 provisions identified: 20 benefits, 1 costs, 3 mixed.

Lower taxes on home items and upgrades

Household furniture and other normal home items are not taxed as property. Up to $1,500 of approved nuclear‑shelter improvements is tax‑exempt if it meets state shelter standards. Residential renewable‑energy systems placed in service after December 31, 2015, and their equipment, are also exempt.

No property tax on aircraft and boats

If you pay the required state fee, your aircraft or your motorboat is not taxed as property. The fee payment is what unlocks the exemption.

Some investments not taxed as property

Cities and towns do not tax U.S. or Rhode Island tax‑exempt government bonds as property. Refined precious‑metal bullion valued by metal content is also exempt. Fabricated items made for industry, professional, or artistic use are not exempt.

Tax relief for estates that cannot pay

An estate is exempt from property tax when the local assessor finds the person could not pay because of infirmity or poverty. In Burrillville and West Greenwich, the tax becomes a five‑year lien that is erased after five years unless the property is sold, conveyed, or refinanced. You can appeal a denial to the local board of tax review.

Bristol can exempt business tangible property

Bristol’s town council can vote to reduce or remove property tax on tangible business or personal property in town. Businesses get relief only if the council approves an exemption.

Property tax relief for named nonprofits

The law exempts specific nonprofit and school properties from local property tax. Examples include Artic Playhouse (West Warwick), Contemporary Theatre Company (South Kingstown), Pet Refuge (North Kingstown), The Samaritans (Pawtucket, amount set by the city council), Foster Forward and Associated Radio Amateurs (East Providence), Providence Country Day School, Heritage Harbor Foundation, Ocean State Community Wellness, La Salle Academy, St. Mary Academy–Bay View, Providence Performing Arts Center, Travelers Aid Society and related entities, Meeting Street Center, the Pomham Island lighthouse site used only by a 501(c)(3), the Stadium Theatre Foundation, and East Bay Community Action Program. These exemptions apply only while each property meets the named ownership and use conditions.

Property tax relief for veterans' groups

Real estate used only for military purposes by approved National Guard, naval militia, or approved chartered-military groups is tax‑exempt. Incorporated veterans’ organizations get up to $400,000 of property value exempt when the group actually uses and occupies the property. In Cranston, the city council may raise that limit to $500,000 by ordinance.

State and federal land not taxed

State‑owned land and buildings and land owned by the U.S. government are exempt from local property tax in Rhode Island.

Lower property taxes for manufacturers and clean equipment

Manufacturers do not pay property tax on unsold in‑state inventory. Machinery and equipment used for manufacturing, research, or quality checks are exempt, with partial use prorated. For equipment bought after July 1, 1997, a city or town must pass an ordinance, and the break cannot reward firms that relocate within the state. Certified pollution‑control systems installed after April 13, 1970 are exempt; exemptions over ten years need local approval. Hydroelectric generation gear bought after July 1, 1979 is exempt. Recycling or on‑site hazardous‑waste treatment equipment can be exempt when certified and located at or next to the facility. Renewable energy resources used by qualifying manufacturers are also exempt.

Nonexempt tenants pay tax on exempt property

If a non‑exempt business leases or uses property that would otherwise be tax‑exempt (like a hospital or college property), the tenant is taxed as if it owns it. This moves the property tax bill from the exempt owner to the non‑exempt tenant.

Tax‑free status for many community properties

Buildings used only for free public schools or worship, and up to five acres of their land, are tax‑exempt. Homes used by officiating clergy are exempt up to one acre or the local minimum lot size. Charities are exempt on intangible assets used for charity, property of libraries and nonprofit hospitals, fraternal groups using all net income for listed causes, volunteer fire and rescue in active service, and land used only for burials. Private nonprofit colleges in Smithfield may be billed for actual police, fire, and rescue costs if no agreement exists. Charlestown has a special local rule for some religious uses. A legacy $10,000 cap still applies to eligible Brown University officers who claimed it before and continued after December 31, 1996.

Local tax breaks for business equipment

Your city, town, or fire district can vote to give a uniform exemption on tangible personal property, like business equipment. The exemption must apply evenly and follow local tax rules. In Charlestown, the town council may also exempt all or part of tangible business or personal property to promote growth. These breaks apply only where the local governing body adopts them.

East Providence nonprofits get property tax breaks

East Providence exempts property owned by several local nonprofits and lodges from property tax. Examples include the Columbus Club of East Providence and Columbus Club of Barrington (for property in East Providence), Lodge 2337 BPO Elks, St. Andrews Lodge No. 39, and United Methodist Elder Care. The first floor at 90 Leonard Avenue is exempt when owned by Zion Gospel Temple, Inc. The property at 830 Willet Avenue is exempt while owned by American Legion Post 10.

Health and social nonprofits get local tax relief

Several named health and social service nonprofits are exempt from local property tax. Examples include WellOne’s tangible property at 35 Village Plaza Way in North Scituate and Friends of Little Compton Wellness Center at 115 East Main Road. Comprehensive Community Action (while a 501(c)(3)) and South County Community Action at 415 Tower Hill Road are exempt. PROJECT Weber/RENEW is exempt while it remains a 501(c)(3). Mount St. Rita Health Centre at 15 Summer Brown Road in Cumberland is exempt beginning December 31, 2025. Lucy’s Hearth’s property in Middletown is also exempt.

Local tax breaks for open-space groups

A city or town may vote to exempt property owned, held in trust for, or leased to qualified open‑space conservation groups. The property must be used only for conservation. The exemption applies only if the city or town council formally approves it.

Museums and memorial sites exempt from property tax

Several cultural and memorial sites are exempt from local property tax. The Cape Verdean Museum Exhibit (in East Providence) and the New England Wireless and Steam Museum in East Greenwich are exempt while they keep 501(c)(3) status. The Station Fire Memorial Foundation’s parcel at 211 Cowesett Avenue in West Warwick is exempt. The Rhode Island Philharmonic Orchestra and Music School is exempt while it remains a 501(c)(3).

Providence community and health groups get tax relief

Providence exempts property of several named nonprofits. Examples include Providence Community Health Centers (properties in Providence), Southside Community Land Trust at 404 Broad Street (non‑commercial use), Codac, Inc. at 45 Royal Little Drive, and the Center for Southeast Asians at three listed addresses. The Rhode Island Business Development Institute at 220 Smith Street, the Providence Preservation Society at 24 Meeting Street, and Steere House are also exempt.

Youth groups and schools get property tax relief

A qualifying 501(c)(3) youth organization, affiliated with a national congressionally chartered group and serving ages 6–17, is exempt from property tax. The Pawtucket Youth Soccer Association’s property at 52 Plain Street is exempt. Mount Saint Charles Academy’s listed parcels in Woonsocket are exempt. Tides Family Services is exempt at 242 Dexter Street in Pawtucket and for property it owns in West Warwick.

Property tax breaks for named nonprofits

The law exempts specific nonprofit properties from local property tax. Examples include Holy Rosary Band Society (328 Taunton Ave, East Providence), Sojourner House (386 Smith St and 1570 Westminster St, Providence), and the Cape Verdean Museum Exhibit (617 Prospect St, Pawtucket). Little Flower Home (304 Hooper St, Tiverton) keeps its exemption only while it remains a 501(c)(3) charitable nonprofit. The Rhode Island Public Health Foundation also gets an exemption for one Providence property it acquires. These exemptions apply only to the listed owners and addresses named in the law.

Conservation and tribal land trust tax relief

Property used for conservation and wildlife work is exempt at named sites. The Little Compton Game Club’s parcels at 83 and 88 John Dyer Road are exempt. The Wildlife Clinic of Rhode Island at 32865 Tower Hill Road in North Kingstown is exempt. Property held by the Pokanoket Management Group, trustee of the Pokanoket Tribe Land Trust in Bristol, is exempt when used directly to protect natural, cultural, and historic resources.

No local tax on Pawtucket–CF rail stations

Property used to board and drop off railroad passengers in Central Falls and Pawtucket is exempt from local property tax. The rule applies to premises acquired or leased by an incorporated railroad that is authorized by the Rhode Island Public Utilities Commission. It covers property used for passenger boarding and supporting passenger service.

Who counts as a manufacturer for taxes

The law defines which businesses qualify as manufacturers for property tax exemptions. A business qualifies if more than 50% of its in‑state gross receipts come from manufacturing. Sales of products made in Rhode Island count as manufacturing even if sold elsewhere. Some types, like public utilities and certain contractors, are excluded. The Department of Revenue helps local assessors apply these rules.

New tax rules for for-profit hospitals

When a nonprofit hospital becomes for‑profit, or a for‑profit hospital is first set up, assessors set value using the most recent revaluation and the latest assessment date. Owners can appeal to the assessor and then directly to Superior Court’s business calendar. Cities and towns may use tax‑stabilization agreements. In that conversion or start‑up year, taxes or payments tied to the hospital do not count against the town’s levy cap.

Who counts as a manufacturer clarified

The law uses industry codes to decide who gets manufacturer tax breaks. Firms coded as manufacturers are included. Trade‑class retailers like some small bakeries are excluded, except certain bakery home‑delivery operations.

Sponsors & Cosponsors

Sponsor

Brian J. Thompson
Democratic • Senate

Cosponsors

Ryan W. Pearson
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 171 • No: 4

Senate vote • 6/10/2026

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION In Concurrence

Yes: 38 • No: 0

House vote • 6/8/2026

PROPERTY SUBJECT TO TAXATION PASSAGE

Yes: 61 • No: 4

Senate vote • 4/7/2026

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION Passage

Yes: 36 • No: 0