Bill Sponsors
Senator Louis P. DiPalma
Committee
Senate Housing & Municipal Government
Summary
Select
This legislation grants the town of Little Compton the authority to establish a homestead exemption for residential properties. The exemption allows the town to reduce the assessed value of a home for tax purposes, starting at 10% of the mean assessed value, with future adjustments allowed between 5% and 15%. The benefit applies automatically to resident homeowners who are registered voters, while non-registered residents must apply. Notably, the bill allows exemptions for a second home owned by a resident and for long-term rental properties, provided the landlord does not increase the rent for the following year.
Sponsor
Analysis
Pros for Progressives
- Incentivizes rent stabilization by offering tax exemptions to landlords only if they do not increase rental payments for the subsequent lease cycle.
- Provides financial relief to local residents, potentially helping working-class families and seniors on fixed incomes remain in their homes.
- Promotes community stability by encouraging long-term residency through tax benefits for those who make the town their principal place of residence.
Cons for Progressives
- Allows a tax exemption for a "second residential dwelling," which disproportionately benefits wealthier individuals who can afford multiple properties rather than focusing solely on those in need.
- Links automatic enrollment in the tax benefit to voter registration, which creates an unnecessary bureaucratic hurdle for marginalized groups who may be residents but are not registered to vote.
- Reducing the taxable property base could lower overall town revenue, potentially threatening funding for public schools and other essential social services.
Pros for Conservatives
- Reduces the overall tax burden for property owners, allowing residents to keep more of their earned income and assets.
- Supports local autonomy by empowering the town council and financial town meeting to set tax policy rather than imposing a state-wide mandate.
- Protects property rights by extending tax benefits to owners of multiple properties and landlords, recognizing their investment in the community.
Cons for Conservatives
- Interferes with the free market by conditioning tax breaks for landlords on the requirement that they do not raise rents, functioning as a form of soft rent control.
- Creates unequal treatment of taxpayers by automatically granting benefits to registered voters while requiring non-voters to navigate a bureaucratic application process.
- Increases administrative bureaucracy and government oversight by requiring the tax assessor to review lease agreements and verify residency for exemptions.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Homeowners
- Renters
- Landlords
- Registered Voters
- Tax Assessors
Towns Affected
Little Compton
Cost to Taxpayers
None
Revenue Generated
None
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/09/2026 Introduced, referred to Senate Housing and Municipal Government
Bill Text
SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local Taxes" is hereby amended by adding thereto the following section:
44-5-79.1. Little Compton -- Homestead exemption.
(a) The town council, upon approval by the financial town meeting, is authorized to annually fix the amount of a homestead exemption with respect to the assessed value from local taxation on taxable real property used for residential purposes in the town of Little Compton and to grant homestead exemptions to the owner(s) of those residential dwellings in percentage amounts as follows:
(1) In the first year the exemption will be ten percent (10%) of the mean assessed value of all taxable real properties in the town of Little Compton.
(2) In each subsequent fiscal year, the financial town meeting may, by majority vote, amend the percentage described in subsection (a)(1) of this section, within a range of not less than five percent (5%) or more than fifteen percent (15%) of the mean assessed value of all taxable real properties in the town of Little Compton.
(b) All residents who own the residential dwelling in which they reside and are registered to vote in the town of Little Compton shall automatically qualify for the homestead exemption and shall not be required to file an application for the homestead exemption.
(c) Non-registered voters who are residents of the town of Little Compton and who own the residential dwelling in which they reside may apply for the homestead exemption on forms supplied by the Little Compton tax assessor and by demonstrating residency in Little Compton with a Rhode Island driver’s license or other official identification and a utility bill showing the name and address of the resident.
(d) Residents of Little Compton who own more than one residential dwelling located in Little Compton may also apply for a homestead exemption on a second residential dwelling using the process set forth in subsections (b) and (c) of this section.
(e) A residential dwelling leased for at least twelve (12) months to a full-time resident may also be eligible for a homestead exemption so long as the rental payments remain at the same amount at the start of the next twelve (12) month lease cycle following the approval of the exemption. The Little Compton tax assessor shall supply application forms for rental property homestead exemptions, to be filed along with the lease agreement, and additional identifying information for the tenant(s) as determined by the tax assessor.
(f) For the purposes of this section, the term "resident" means an individual whose principal place of residence is located within the town of Little Compton and who occupies such dwelling for more than six (6) months of the calendar year.
SECTION 2. This act shall take effect upon passage.
44-5-79.1. Little Compton -- Homestead exemption.
(a) The town council, upon approval by the financial town meeting, is authorized to annually fix the amount of a homestead exemption with respect to the assessed value from local taxation on taxable real property used for residential purposes in the town of Little Compton and to grant homestead exemptions to the owner(s) of those residential dwellings in percentage amounts as follows:
(1) In the first year the exemption will be ten percent (10%) of the mean assessed value of all taxable real properties in the town of Little Compton.
(2) In each subsequent fiscal year, the financial town meeting may, by majority vote, amend the percentage described in subsection (a)(1) of this section, within a range of not less than five percent (5%) or more than fifteen percent (15%) of the mean assessed value of all taxable real properties in the town of Little Compton.
(b) All residents who own the residential dwelling in which they reside and are registered to vote in the town of Little Compton shall automatically qualify for the homestead exemption and shall not be required to file an application for the homestead exemption.
(c) Non-registered voters who are residents of the town of Little Compton and who own the residential dwelling in which they reside may apply for the homestead exemption on forms supplied by the Little Compton tax assessor and by demonstrating residency in Little Compton with a Rhode Island driver’s license or other official identification and a utility bill showing the name and address of the resident.
(d) Residents of Little Compton who own more than one residential dwelling located in Little Compton may also apply for a homestead exemption on a second residential dwelling using the process set forth in subsections (b) and (c) of this section.
(e) A residential dwelling leased for at least twelve (12) months to a full-time resident may also be eligible for a homestead exemption so long as the rental payments remain at the same amount at the start of the next twelve (12) month lease cycle following the approval of the exemption. The Little Compton tax assessor shall supply application forms for rental property homestead exemptions, to be filed along with the lease agreement, and additional identifying information for the tenant(s) as determined by the tax assessor.
(f) For the purposes of this section, the term "resident" means an individual whose principal place of residence is located within the town of Little Compton and who occupies such dwelling for more than six (6) months of the calendar year.
SECTION 2. This act shall take effect upon passage.