The bill amends existing tax laws in Rhode Island to provide various exemptions for urban and small farmers, specifically targeting sales taxes, real and tangible personal property taxes, and income taxes. It introduces definitions for "urban farmer," "urban farmland," "small farmer," and "small farmland," establishing criteria for eligibility based on agricultural operations conducted in urban areas and on small plots of land.

The bill allows for tax exemptions for properties occupied by urban farmers engaged in agricultural activities, provided they meet specific conditions, such as building size limitations (no greater than 2,500 square feet) and the nature of agricultural operations. It outlines a land use change tax for properties that lose their urban farmland or small farmland classification within a certain timeframe, ensuring that municipalities may assess additional taxes based on fair market value if the land use changes within fifteen years of classification.

Additionally, the legislation modifies existing tax exemptions related to agricultural operations, including provisions for urban farming that eliminate minimum gross sales requirements for tax eligibility. It clarifies definitions and acceptable management practices for urban farmland and small farmland, promoting sustainable agricultural practices. The bill emphasizes the role of the Department of Environmental Management in assisting local assessors with the application of these definitions.

Set to take effect on July 1, 2026, the bill aims to support urban and small farming initiatives, encouraging agricultural activities in urban settings and contributing to 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