AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

SB 1141 clarifies the tax treatment for qualifying low-income housing properties in Rhode Island. It requires new qualifying housing units to meet federal definitions (26 U.S.C. §42) for low-income housing, while allowing existing units meeting the state's affordable housing definition (as of December 31, 2024) to retain their tax benefits. The bill mandates that these properties pay a tax equal to 8% of their previous year's gross rental income (or a lower rate set by the municipality). This applies to residential properties with rent or income restrictions recorded in land records, directly affecting housing developers and property owners managing such units.