Places a cap of twenty percent (20%) on increases in consecutive revaluations of real property in all cities and towns conducting revaluations commencing December 31, 2026, and every December 31 thereafter.

Rhode Island Property Tax Revaluation Cap Bill

This bill would limit how much a property's assessed value can increase from one official revaluation to the next. Specifically, it would cap increases at 20% between consecutive revaluations. This rule would apply to all cities and towns in Rhode Island starting with revaluations that begin on or after December 31, 2026, and would continue on a recurring basis after that.

In Rhode Island, cities and towns periodically reassess (or "revalue") properties to update their estimated market values, which in turn affects how much property tax owners pay. In recent years, rapidly rising home values have led to sharp increases in assessed values, which can result in significantly higher tax bills for homeowners. Under this bill, even if a property's market value increased by, say, 50% between revaluations, the assessed value used for tax purposes could only go up by a maximum of 20%.

This bill primarily affects homeowners and property owners across Rhode Island, particularly those in areas where real estate values have risen quickly. It would offer some protection against dramatic tax increases tied to surging property values. However, it could also affect local government revenues, since capping assessed values might limit how much tax income a city or town can collect, potentially impacting funding for local services like schools and public safety.

As of now, the bill has been referred to the House Municipal Government & Housing Committee and was recommended to be held for further study, meaning it has not yet advanced through the legislative process.