Property taxes for the state of Rhode Island.
The Ocean State imposes no state property tax laws but rather local ones, through the state’s 39 municipalities. A portion of the city and town taxes, however, is reserved for state purposes, and in some rural areas a fire district tax is collected. Rhode Island, like many Northeastern states (such as New Hampshire and Vermont), taxes quite heavily, and has one of the country’s highest property tax per capita per year.
Property is assessed at 100% its full value, and tax rates vary according to municipality in which the property is located. Charlestown, for example, has a tax rate of $7.51 per $1,000 whereas Providence has a tax rate of $22.84 per $1,000. Commercial real estate, motor vehicles, retail and wholesale inventory, and business personal property are all taxed as well. For the 2007-2008 municipal tax rates, go here. Downloadable forms for years 2000-2007 can be found here.
The maximum tax levy increase for each year can be found in Section 44-5-2 of the Rhode Island General Laws. They are as follows:
- 2008 – 5.25%
- 2009 – 5.00%
- 2010 – 4.75%
- 2011 - 4.50%
- 2012 – 4.25%
- 2013 and after – 4.00%
More information on this can be found here.
Tax relief is available to homeowners whose household income does not exceed $30,000. The amount by which property taxes (or rent paid) exceed a certain percentage of the household income is how the refund is calculated; the maximum refund allowed is $250. Certain municipalities in Rhode Island give homeowners protection from lawsuits against their homes. This type of homestead exemption is worth $300,000.
Because Rhode Island imposes taxes at the municipality level, you’ll find property tax information at the website of the Department of Administration’s Municipal Division (click the Finances tab to the left). All other tax information can be found at the Rhode Island Division of Taxation.