The bill amends Chapter 44-5 of the General Laws to introduce a new section, 44-5-20.13.2, which establishes a property tax deferral program for qualified senior citizens, disabled citizens, and disabled veterans. Under this program, eligible individuals can defer the payment of property taxes on their single-family dwellings, including manufactured homes, until the property is disposed of due to the death of all qualified owners or through transfer or conveyance. Any deferred taxes will create a lien on the property, and interest will accrue at a rate of six percent annually during the deferral period.

The bill outlines specific eligibility criteria, defining a senior citizen as a resident who is sixty-two (62) years of age or older, a disabled citizen as a resident determined to be totally disabled by the United States Social Security Administration, and a disabled veteran as a resident who is a veteran and has been determined to be totally disabled by the United States Veterans Administration. Properties with reverse mortgages or less than twenty percent (20%) equity are excluded from the deferral program.

Additionally, the bill grants the Rhode Island general treasurer's office the authority to establish requirements and application and verification procedures for municipalities to implement the tax deferral program. It includes provisions for penalties if a deferral is granted based on false claims, stating that an owner who did not file the claim in good faith will be assessed a delinquency penalty for the nonpayment of deferred taxes. The tax collector of each city or town is required to certify to the director of finance the total amount of supplemental roll property tax deferral claims submitted by January 31 each year.

To support this program, the state will appropriate two million dollars ($2,000,000) annually starting in fiscal year 2027, with the funds managed by the office of the general treasurer. The act will take effect upon passage.