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

This bill establishes a property tax deferral program for Rhode Island senior citizens (62+), disabled residents (as determined by the Social Security Administration), and disabled veterans (as determined by the Veterans Administration). Eligible homeowners can delay paying property taxes on their primary residence (including manufactured homes) until the property is sold, transferred, or upon the death of all owners, with 6% annual interest added to the deferred amount. The program excludes properties with reverse mortgages or less than 20% equity, and the state will fund it with $2 million annually starting in fiscal year 2027. Local tax collectors must report deferral claims by January 31 each year, and deferred taxes become a lien on the property.