Authorizes the town council of Little Compton to establish a homestead exemption for residential dwellings.

## Summary of the Little Compton Homestead Exemption Bill

This bill gives the town council of Little Compton, Rhode Island, the legal authority to create a "homestead exemption" for residential properties. A homestead exemption is a type of property tax break that reduces the taxable value of a home for people who live in it as their primary residence. Essentially, if the town council decides to use this authority, homeowners who actually live in their homes in Little Compton could pay less in property taxes than they would otherwise.

It's important to note that this bill does not automatically create the tax break — it simply gives the Little Compton town council the *option* to establish one. The town council would still need to take action on its own to set up the exemption and decide the specific details, such as how large the exemption would be.

This bill primarily affects homeowners in Little Compton who use their property as their main residence. It would not apply to vacation homes, rental properties, or commercial buildings. In many communities that adopt homestead exemptions, the goal is to shift some of the property tax burden away from year-round residents. This can be particularly relevant in towns with significant numbers of seasonal or second homes, where property values — and therefore tax assessments — may be driven up by the real estate market. The bill has passed both chambers of the Rhode Island legislature and has been sent to the governor for consideration.