The bill amends Section 44-25-1 of the General Laws regarding the Real Estate Conveyance Tax, introducing new provisions that allow municipalities to impose an additional conveyance tax on residential real property transactions exceeding nine hundred thousand dollars ($900,000) or a higher amount as adopted by ordinance. This additional tax can be set at a rate of up to ten dollars ($10.00) for each five hundred dollars ($500) of the consideration above this threshold.

The bill requires that the excess conveyance taxes collected be deposited into restricted accounts and allocated solely for the creation and development of affordable housing for individuals or families earning at or below eighty percent (80%) of the area median income. Municipalities are mandated to maintain a local affordable housing board to oversee the funds in these restricted accounts and to allocate the funds within five (5) years.

Alternatively, municipalities may elect to transfer the collected tax funds promptly upon receipt or within a two (2) year period to the housing resources commission, the Rhode Island department of housing, or Rhode Island Housing for the purpose of developing affordable housing within the community. Any tax funds collected and not allocated within five (5) years must be transferred to the Rhode Island department of housing for the same purpose. The act is set to take effect upon passage.

Statutes affected:
2697: 44-25-1