The bill amends Section 44-25-1 of the General Laws regarding the Real Estate Conveyance Tax, introducing a new provision that allows municipalities to impose an additional conveyance tax on residential real property transactions exceeding nine hundred thousand dollars ($900,000). This new tax rate can be set at not more than ten dollars ($10.00) for each five hundred dollars ($500) of the consideration above this threshold.

The bill requires that the excess conveyance taxes collected be deposited into restricted accounts, which must be allocated and spent only for the creation and development of affordable housing for individuals or families earning at or below eighty percent (80%) of the area median income. Municipalities are mandated to maintain a local affordable housing board to oversee these funds and must allocate them within two years.

As an alternative, municipalities may elect to transfer the tax collections promptly upon receipt or within the two-year period to the housing resources commission, the Rhode Island department of housing, or Rhode Island Housing for the purpose of developing affordable housing within that community.

The act will take effect upon passage.

Statutes affected:
37: 44-25-1