This bill amends various sections of the General Laws to introduce tax exemptions specifically aimed at supporting urban and small farmers in Rhode Island. It defines key terms such as "small farmer," "urban farmer," and "urban farmland," establishing criteria for tax-exempt status based on the size of the farming operation and its location. The bill allows for exemptions from sales taxes, real and tangible personal property taxes, and income taxes for qualifying farmers, provided they meet specific conditions related to agricultural operations.

The legislation specifies that urban farmers and small farmers are exempt from certain taxes, with detailed definitions and criteria for what constitutes "actively devoted to agricultural or horticultural use." It outlines the conditions under which a building can be exempt, including size limitations and usage for agricultural activities.

Additionally, the bill introduces a land use change tax for properties that cease to qualify as urban or small farmland after being exempt for less than fifteen years, with decreasing tax rates over that period. The bill also mandates that the Department of Environmental Management provide assistance to local assessors in determining the proper application of these definitions.

Overall, the legislation aims to enhance the viability of urban and small farming, support local economies, and provide necessary tax relief to encourage agricultural practices in urban areas. The act is set to take effect on July 1, 2027.

Statutes affected:
2827: 44-3-3, 44-11-11, 44-18-30