The bill amends various sections of the General Laws to provide tax exemptions for urban and small farmers. It specifically exempts certain real and tangible personal property of urban farmers and small farmers from sales taxes, real property taxes, and income taxes. The bill defines "urban farmer" as the principal person engaged in agricultural operations on urban farmland, and "small farmer" as the principal person engaged in agricultural operations on fewer than five acres of land. It also defines "urban farmland" as land actively devoted to agricultural or horticultural use in an urban area.

Additionally, the bill establishes a land use change tax for urban and small farmers whose properties have been exempt for fewer than fifteen years, allowing municipalities to assess additional taxes if the land is no longer classified as urban or small farmland. The Department of Environmental Management is tasked with assisting local assessors in applying these definitions.

The bill includes provisions related to sales and use tax exemptions, specifying that urban farmers are not required to meet any minimum annual gross sales amount to qualify for exemptions. It clarifies that gross receipts from the sale and storage of farm products used to grow food by urban and small farmers are exempt from sales and use taxes. The act is set to take effect on July 1, 2027.

Statutes affected:
7242: 44-3-3, 44-11-11, 44-18-30