The bill amends Section 44-5-13.11 of the General Laws concerning the assessment and taxation of qualifying low-income housing. It establishes that any residential property issued an occupancy permit after January 1, 1995, and that has undergone substantial rehabilitation, will be taxed at a rate of eight percent (8%) of the previous year's gross scheduled rental income, or a lesser percentage determined by the municipality. However, effective January 1, 2026, residential properties that are part of the Section 202 Supportive Housing for the Elderly Program, Section 811 Supporting Housing for Persons with Disabilities Programs, or project-based Section 8 housing, will be subject to a higher tax rate of twelve percent (12%) of the previous year's gross scheduled rental income, provided they are utilizing an operating cost basis for federal reimbursement.

The bill also includes a provision that the twelve percent (12%) tax rate will only apply as long as the property continues to use the operating cost basis for federal reimbursement. This change aims to provide a more favorable tax structure for specific low-income housing programs, thereby potentially encouraging the development and maintenance of affordable housing options. The act will take effect upon its passage.

Statutes affected:
5236: 44-5-13.11