The bill amends various sections of the General Laws to introduce new tax exemptions and definitions related to urban farming and small farming operations in Rhode Island. It defines key terms such as "urban farmer," "urban farmland," and "small farmer," establishing criteria for these classifications, including the size of the land and the nature of agricultural activities. The bill provides tax exemptions for urban farmers from various taxes, including sales taxes, real property taxes, tangible personal property taxes, and income taxes, thereby promoting local agricultural initiatives and supporting farmers who operate within urban areas.

Additionally, the bill introduces a land use change tax for urban farmland that has been exempt from taxation for fewer than fifteen years, allowing municipalities to assess additional taxes if the land is repurposed. The tax rates for this land use change tax are tiered based on the number of years the land has been classified as urban farmland. The bill also modifies the definition of net income for corporate taxpayers to include income from the production of food by urban farmers and small farmers. Overall, the amendments aim to enhance support for urban agriculture, clarify tax exemption criteria, and promote economic development through local food production.

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