The bill amends Section 44-5-11.8 of the General Laws in Chapter 44-5, which is related to the "Levy and Assessment of Local Taxes," to update tax classification provisions. The amendment allows cities and towns to adopt a tax classification plan with specific limitations, such as not exceeding the effective tax rate for any class by more than fifty percent of the rate applicable to any other class, with certain exceptions for specific towns and cities. It also outlines the different classes of property, including residential, commercial, industrial, personal property, and motor vehicles, and specifies the tax rate restrictions and exemptions applicable to each class. Notably, the bill includes a new provision that allows any city or town to classify non-owner-occupied residential properties used as short-term rentals for tourist or transient use as Class 2 properties, effective for taxes assessed on or after December 31, 2024.

The bill also contains several town-specific provisions that allow for the adoption or modification of tax classification plans in towns such as Middletown, Little Compton, Scituate, Coventry, East Greenwich, New Shoreham, and Bristol, with each having unique provisions and effective dates. The bill stipulates that these changes will take effect upon passage. The legislative council's explanation clarifies that the act's purpose is to include non-owner-occupied residential properties used for short-term rentals as Class 2 properties starting from the assessment date of December 31, 2024, and that the act will be effective immediately upon passage.

Statutes affected:
2018: 44-5-11.8