The bill amends Section 44-3-3 of the General Laws, which pertains to property subject to taxation, and introduces several exemptions for various types of property and organizations. Notable insertions include provisions for the town of Charlestown regarding property owned by religious organizations and used by clergy, and a clause allowing the town of Smithfield to bill for actual costs of police, fire, and rescue services to certain nonprofit corporations unless an agreement is reached. The bill also defines a manufacturer and their inventory, and outlines conditions for manufacturing exemptions. It exempts property used for pollution control, manufacturing machinery and equipment, precious metal bullion, and hydroelectric power-generation equipment from taxation. Additionally, it provides for proration of taxation for machinery and equipment used partially in manufacturing and allows local ordinances to exempt certain machinery and equipment from taxation.

The bill further introduces new legal language with insertions that extend property tax exemptions to urban farmers and urban farmland, including one residential dwelling per lot under certain conditions. It defines "actively devoted to agricultural or horticultural use," "agricultural operations," "urban area," "urban farmer," and "urban farmland." It also establishes a land use change tax for urban farmers, with a sliding scale of additional taxes imposed if the land is no longer used as urban farmland within a fifteen-year period. The bill amends the definition of "net income" for business corporation tax to exclude income from the production of food by urban and small farmers. Furthermore, it introduces new definitions and clarifications regarding agricultural practices, particularly in urban areas, and establishes a framework for agricultural activities within densely populated municipalities.

Statutes affected:
7684: 44-3-3, 44-11-11, 44-18-30