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 rules for real property. 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 residential properties with rent or income restrictions, farmland, forest, or open space land, and introduces exemptions for certain improvements or additions to residential properties in Warwick and Central Falls. The bill also addresses the assessment of tangible property and renewable energy resources, and it provides exemptions for new construction on development property under certain conditions. Additionally, it outlines the requirement for municipalities to inform landowners about additional taxes for changing the use of land classified for farm, forest, or open space.
Section 44-5-13.11 is amended to clarify the assessment and taxation of qualifying low-income housing. The bill states 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 previous year's gross rent potential or a lesser percentage determined by the municipality. If only a portion of the units in a property meet the requirements, the 8% rate applies only to that portion. The bill also requires municipal tax assessors to establish written procedures for property owners to request the application of this statute and to provide annual documentation of gross rent potential and certification that the property meets the requirements. The act would take effect upon passage and is specifically tailored to apply only to residential properties and new or rehabilitated residential affordable housing units.