The bill proposes amendments to the General Laws in Chapter 44-25, which pertains to the Real Estate Conveyance Tax, introducing a tiered tax structure for real estate transactions. The bill sets a tax of $2.30 per $500 of consideration for transactions over $100, with an increased tax rate of $3.30 per $500 for the portion of consideration above $2,000,000. It also specifies the distribution of tax revenue, including allocations to the distressed community relief program, the housing resources commission, and the state, with a portion retained by the municipality. A new provision is added to allocate the entire tax from a new subsection (c) to affordable housing for the elderly, administered by Rhode Island housing. The bill includes insertions that modify tax rates and brackets and introduces a new subsection (c) for additional tax on high-value transactions.

The bill also clarifies the definition of an "acquired real estate company" and the conditions under which such a company is subject to the conveyance tax, including a requirement to report transfers of 50% or more ownership within a three-year period to the division of taxation. It deletes the phrase "subsection (e)(2)," which appears to relate to the timing of consecutive transfers. New exemptions to the conveyance tax are introduced, including transactions involving the United States, the state of Rhode Island, its political subdivisions, and certain transactions related to affordable housing developments and for the elderly. The bill exempts transfers among owners, members, or partners in a real estate company concerning affordable housing developments financed with federal low-income housing tax credits or involving a Rhode Island nonprofit or tax-exempt entity, with certain restrictions. The bill is set to take effect upon passage.