The bill amends Section 44-3-3 of the General Laws in Chapter 44-3, introducing specific tax exemptions for urban farmers and small farmers. It defines key terms such as "urban farmer," "urban farmland," and "agricultural operations." The bill exempts the real and tangible personal property of urban farmers and urban farmland from sales taxes, real property taxes, and income taxes, provided certain conditions are met. It specifies that urban farmland includes one building per lot, used for agricultural activities, with size limitations.

Additionally, the bill establishes a land use change tax for urban farmland that has been exempt for fewer than fifteen years, allowing municipalities to assess additional taxes if the land is no longer classified as urban farmland. The bill also provides similar exemptions for small farmers and small farmland, defining "small farmer" and "small farmland" based on acreage and tax filing requirements.

Furthermore, the bill modifies existing tax laws to include exemptions for income derived from the production of food by urban farmers and small farmers. It clarifies that urban farmers are not required to meet any minimum annual gross sales amount to qualify for tax exemptions. The bill aims to support local agricultural practices by providing various sales and use tax exemptions for specific categories of tangible personal property and services related to urban and small farming. The act takes effect upon passage.

Statutes affected:
431: 44-3-3, 44-11-11, 44-18-30