The bill amends Section 44-5-11.8 of the General Laws in Chapter 44-5, which is concerned with the levy and assessment of local taxes. The amendment introduces a new subsection (j) that allows any city or town, by ordinance, to classify non-owner-occupied residential properties used as short-term rentals for tourist or transient use as Class 2 properties. This classification would be applicable to taxes assessed on or after the assessment date of December 31, 2023. The rest of the section outlines the tax classification plan that cities and towns may adopt, detailing the limitations on tax rates for different classes of property, the definitions of property classes, and the special provisions for certain towns regarding tax classification and rates.

The bill specifies that the tax classification plan can include different classes of property, such as residential real estate, commercial and industrial real estate, tangible personal property, and motor vehicles. It also mentions that certain towns like Providence, Glocester, and East Greenwich have specific provisions regarding the tax rates they can set for different property classes. The bill also includes provisions for homestead exemptions and the ability for towns to divide residential property into owner-occupied and non-owner-occupied for separate tax rates. The act would take effect upon passage, meaning the changes would become law as soon as it is formally enacted.

Statutes affected:
309: 44-5-11.8