Provides that the tax rate for Class 1 and Class 2 property be uniform and set to the same percentage.
Summary
S1097 amends Rhode Island law governing local property taxation in the City of Warwick. The bill changes the existing property tax classification rules so that the tax rate for Class 1 property must be uniform with, and set to the same percentage as, the Class 2 property tax rate. It retains the assessor’s duty to determine full and fair cash valuation and assessed values for all taxable property, including real and personal property, motor vehicles, and trailers, but narrows the rate-setting rule by eliminating the prior minimum spread between the two classes.
The measure applies retroactively to the December 31, 2024 assessment and takes effect upon passage. In practical terms, it affects Warwick taxpayers by requiring the city’s property tax rates for the two classes to be aligned for the relevant assessment year, which may change the distribution of the local tax burden between property classes and affect municipal revenue planning and tax bills.
Impact
This bill amends Section 44-5-67.2 of the Rhode Island General Laws, which is specific to Warwick’s property tax classification system. It changes the statutory rule governing the relationship between Class 1 and Class 2 tax rates, replacing the prior requirement that Class 1 rates be no less than 57% of Class 2 rates with a requirement that the rates be uniform and set to the same percentage. The bill also applies retroactively to the December 31, 2024 assessment, meaning it can affect already-established tax assessments for that year.
Sentiment
The available voting history shows strong support for the bill, with unanimous passage in the Senate (34-0) and unanimous passage in concurrence in the House (71-0). No committee transcripts were provided, but the recorded votes indicate broad bipartisan agreement and little visible opposition in the formal legislative process.
Contention
The main substantive issue is the effect on Warwick’s property tax structure, particularly how equalizing Class 1 and Class 2 rates may shift tax liability among homeowners, businesses, and other property owners depending on how those classes are defined locally. Potential points of concern include the retroactive application to the 2024 assessment and the impact on municipal budgeting and tax equity. However, the unanimous votes suggest that any disagreement was limited or resolved before floor action.