Provides an eight percent (8%) tax rate for those properties that are encumbered by a deed restriction for low-income housing set at eight percent (80%) or sixty percent (60%) of adjusted median income established by HUD.
Impact
The bill potentially alters existing state tax laws by providing a standardized tax treatment for properties that meet specific low-income criteria. Moreover, properties converted from non-residential use to residential housing are included, thus broadening the scope of taxation reform. Notably, municipalities are prohibited from taxing qualifying properties at rates higher than stipulated in the bill, aiming to consolidate and enhance affordable housing initiatives across the state. This mechanism could lead to a more uniform approach to property taxation in relation to low-income housing development while ensuring that local governments cannot impose stricter regulations beyond state provisions.
Summary
S3160 is a legislative act aimed at reforming the taxation policies related to low-income housing in Rhode Island. The bill proposes an 8% tax rate on residential rental properties encumbered by deed restrictions that limit rents based on household income levels, specifically targeting households at or below 80% and 60% of the area median income as defined by the U.S. Department of Housing and Urban Development (HUD). This tax rate seeks to encourage the development and maintenance of affordable housing units while providing financial relief to property owners adhering to these regulations.
Contention
Notable points of contention surrounding S3160 include concerns about ensuring compliance with responsible contracting standards and the impact on local control over taxation policies. Opponents may argue that standardizing tax rates for low-income housing could undermine local governments' ability to respond to community-specific needs. Additionally, the bill's provisions regarding prevailing wage laws for construction projects might generate debate among stakeholders about the financial implications for developers and the potential effects on housing supply and affordability in the state.
Provides an 8% tax rate for those properties that are encumbered by a deed restriction for low-income housing set at 80% or 60% of adjusted median income established by HUD.
Provides an 8% tax rate for those properties that are encumbered by a deed restriction for low-income housing set at 80% or 60% of adjusted median income established by HUD.
Phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty percent (20%) up to eighty percent (80%), beginning on or after January 1, 2026.
Gradually phases in modifications to federal adjusted gross income over a four (4) year period for social security income, from twenty-five percent (25%) up to one hundred percent (100%), beginning on or after January 1, 2026.
Specifies that low and moderate income housing exists when a city or town has adopted an inclusionary zoning ordinance requiring that all housing developments include at least fifty percent (50%) low or moderate income housing units.
Specifies that low and moderate income housing exists when a city or town has adopted an inclusionary zoning ordinance requiring that all housing developments include at least fifty percent (50%) low or moderate income housing units.
In tenement buildings and multiple dwelling premises, further providing for definitions and providing for borrowing requirements, for abandonment of residential rental property and for maintenance by receiver; and imposing penalties.