Allows the town council of New Shoreham to adopt a tax classification plan in accordance with the provisions of this section.
Summary
S1009 amends Rhode Island’s local property tax classification law to give the Town of New Shoreham additional flexibility in how it taxes residential property. In particular, the bill allows New Shoreham, by ordinance or resolution, to adopt a tax classification plan that splits residential real estate into two categories: owner-occupied and non-owner-occupied property. The town may then set separate tax rates for those categories, rather than relying only on a homestead exemption approach.
The bill fits within a broader statute that already authorizes different tax classes and special local rules for certain municipalities, including Providence and several other towns. For New Shoreham, the new authority is specifically framed as an alternative to a homestead exemption, and the town must still operate within the statute’s general tax-rate restrictions for classified property. The act takes effect immediately upon passage.
Impact
The bill changes § 44-5-11.8 of the Rhode Island General Laws by adding New Shoreham to the list of municipalities with special authority to adopt a local tax classification plan. This expands local taxing discretion for the town and may affect how residential property tax burdens are allocated between owner-occupied homes and other residential properties, such as seasonal or non-owner-occupied housing. It does not create a new statewide tax, but it does alter the legal framework governing municipal property tax classification and rate-setting.
Sentiment
The available voting record shows strong, unanimous support for the bill in both chambers, with passage in the Senate by 35-0 and passage in concurrence by the House by 66-0. No committee transcript is available, but the final votes suggest the measure was broadly noncontroversial and viewed as a targeted local government authorization rather than a major policy dispute.
Contention
No notable opposition appears in the available record. The only substantive policy choice reflected in the bill is whether New Shoreham should be allowed to use a split-rate classification system for residential property instead of, or in lieu of, a homestead exemption. Because the bill is narrowly tailored to one municipality and preserves the general statutory tax-rate limits, there is no evidence of broader contention over statewide tax policy or unequal treatment among municipalities.