Rhode Island House Bill H7567

Rhode Island 2026 Regular Session

• Introduced: 2/6/26
• Refer: 2/6/26

Caption

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES -- TAX, DEFERRAL PROGRAM

Summary

H7567 would create a statewide property tax deferral program for qualifying homeowners who are senior citizens, disabled citizens, or disabled veterans. The bill allows property taxes on an eligible single-family dwelling, including a manufactured home, to be deferred until the property is transferred or disposed of upon the death of all qualified owners. Deferred taxes would become a lien on the property, and interest would accrue at 6% annually until repayment. The bill defines eligibility as age 62 or older for seniors, total disability as determined by Social Security for disabled citizens, and total disability as determined by the U.S. Veterans Administration for disabled veterans. It excludes properties with reverse mortgages, properties with less than 20% equity, and taxes paid through escrow accounts. The General Treasurer’s office would set application and verification procedures, municipalities would certify deferred amounts annually, and the state would appropriate $2 million beginning in fiscal year 2027 to fund the program.

Impact

This bill would amend Rhode Island’s local tax law in Chapter 44-5 by adding a new statewide property tax deferral mechanism. It would affect municipal tax collectors, assessors, and finance officials by creating new filing, verification, lien-recording, and reporting duties, while also shifting some property tax burden from eligible homeowners to a state-funded deferral pool administered by the General Treasurer. The program would not eliminate the tax obligation; it would postpone collection and secure the deferred amount as a lien against the property.

Sentiment

Based on the bill text and available context, the measure appears generally supportive of seniors, disabled residents, and disabled veterans by offering tax relief and allowing them to remain in their homes longer. The bill’s sponsorship from members across the political spectrum suggests broad interest in the policy. No committee testimony or recorded votes were provided, so there is no documented opposition or formal sentiment from hearings in the available materials.

Contention

The main policy issues likely concern fiscal cost, administrative implementation, and eligibility limits. The bill requires a $2 million annual state appropriation starting in fiscal year 2027, which could draw scrutiny from budget-focused lawmakers. Municipalities may also raise concerns about the mechanics of verifying eligibility, recording liens, and managing deferred tax claims. In addition, the exclusions for reverse mortgages, low-equity properties, and escrow-paid taxes may be viewed as necessary safeguards by supporters but potentially restrictive by those who want broader access.