The bill amends sections 44-5-12 and 44-5-13.11 of the General Laws in Chapter 44-5, titled "Levy and Assessment of Local Taxes," to update the assessment and taxation of real property and qualifying low-income housing. The bill specifies that all real property subject to taxation shall be assessed at its full and fair cash value or at a uniform percentage thereof, not to exceed 100%. It includes provisions for the assessment of residential properties with affordability restrictions, farmland, forest, or open space land, and properties in Warwick and Central Falls that make certain improvements. The bill also addresses the assessment of tangible property, renewable energy resources, and development property, and it outlines the exemption process for new construction on development property.

The bill introduces changes to the taxation of qualifying low-income housing, stating that residential rental properties developed or substantially rehabilitated after January 1, 1995, that meet the definition of low- or moderate-income housing and are restricted by a covenant, will be taxed at 8% of the property’s previous year's gross rent potential or a lesser percentage determined by the municipality. The bill also provides for the application of this tax rate to only the portion of the property that meets the requirements, and it requires municipal tax assessors to establish written procedures for property owners to request this tax application. The bill takes effect upon passage and clarifies that only residential properties and new or rehabilitated residential affordable housing units are subject to the tax under § 44-5-13.11 relating to the taxation of low-income housing.