The bill amends Section 44-3-3 of the General Laws in Chapter 44-3, establishing exemptions from taxation for certain properties owned by urban and small farmers. It specifies that the real and tangible personal property of urban farmers and urban farmland is exempt from sales taxes, real property taxes, tangible personal property taxes, and income taxes, provided they meet specific criteria. The bill defines "urban farmer" as the principal person engaged in agricultural operations on urban farmland, and "small farmer" as the principal person engaged in agricultural operations on fewer than five acres of land.

The legislation outlines the conditions under which urban farmland and small farmland qualify for tax exemptions, including the size and use of agricultural buildings, and the requirement that the land be actively devoted to agricultural or horticultural use under normally acceptable practices. It also establishes a land use change tax for urban farmland and small farmland that ceases agricultural use, with a tiered tax structure decreasing over the first fifteen years of classification.

Additionally, the bill defines key terms related to urban and small farming, such as "agricultural operations" and "urban area," and clarifies that urban farmers are not required to meet any minimum annual gross sales amount to qualify for tax exemptions. The legislation is set to take effect on July 1, 2026, promoting urban agriculture and supporting local economies.

Statutes affected:
5534: 44-3-3, 44-11-11, 44-18-30
5534  SUB A: 44-3-3, 44-11-11, 44-18-30