The bill amends Section 44-3-3 of the General Laws in Chapter 44-3, introducing tax exemptions specifically for urban and small farmers. It exempts certain real and tangible personal property of urban farmers and urban farmland from sales taxes, real property taxes, tangible personal property taxes, and income taxes. The bill defines "urban farmer" as the principal person engaged in agricultural operations on urban farmland, and "urban farmland" as land actively devoted to agricultural or horticultural use in an urban area.

Additionally, the bill defines "small farmer" and "small farmland," providing similar tax exemptions for properties owned by small farmers. It specifies that urban farmers are not required to meet any minimum annual gross sales amount to qualify for tax exemptions. The legislation also establishes a land use change tax for urban farmland and small farmland that has been exempt from taxation for fewer than fifteen years, allowing municipalities to impose additional taxes if the land's classification changes.

The bill aims to support local agriculture and economic growth within urban communities, with an effective date set for July 1, 2026.

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