Permits every municipality in the state to offer a homestead tax exemption of up to 20% of assessed value on residential properties, and also provides that municipalities that grant greater exemptions not be limited by this section.

Plain-English Summary

This bill would allow every city and town in Rhode Island to offer a "homestead exemption" of up to 20% on property taxes for residential properties. A homestead exemption means that homeowners who live in their own home as their primary residence would have a portion of their home's assessed value excluded when calculating how much they owe in property taxes. For example, if a home is assessed at $300,000 and a 20% exemption applies, the owner would only be taxed on $240,000 worth of value, potentially resulting in a lower tax bill.

Currently, not all Rhode Island municipalities have the same ability to offer these kinds of exemptions. This bill would extend that option to every municipality in the state, giving local governments a new tool to provide tax relief to homeowners who actually live in the homes they own. Importantly, the bill also specifies that cities or towns that already offer exemptions *larger* than 20% would not be restricted or penalized — they could continue offering their more generous exemptions.

This bill primarily affects Rhode Island homeowners who use their property as their primary residence, as they would be the ones eligible for the exemption. It also affects local municipal governments, which would gain the flexibility — but not the requirement — to implement this benefit. Renters and owners of non-primary-residence properties (such as investment properties or vacation homes) would generally not benefit from this type of exemption. The bill is currently being held in committee for further review.