The bill amends Section 44-5-13.11 of the General Laws regarding the assessment and taxation of qualifying low-income housing. It establishes that residential properties issued an occupancy permit after January 1, 1995, and encumbered by a covenant for low-income housing, will be taxed at a rate of 8% of the previous year's gross scheduled rental income if at least 40% of the units are affordable to households at or below 80% of the statewide area median income, or if at least 30% of the units are affordable to households at or below 60% of the median income. Additionally, properties converted from non-residential to residential use will follow a fixed tax schedule starting at 8% for the first 15 years, then gradually increasing to 12% over the next 15 years.

The bill also clarifies that "residential property" does not include non-residential portions of mixed-use buildings, which must be taxed at the appropriate non-residential rate. It allows properties approved for tax treatment under this section to maintain their established tax rates unless rejected by the property owner, and this treatment is transferable to new owners if conditions are met. Furthermore, it prohibits local authorities from taxing qualifying properties at rates higher than those specified in the bill, emphasizing the state-wide concern for creating low-income housing and adaptive reuse of buildings. The act will take effect upon passage.

Statutes affected:
963: 44-5-13.11