Allows the waiver of interest on overdue taxes for commercial properties.

Plain-English Summary

This Rhode Island bill would give local governments the ability to waive, or cancel, the interest charges that normally build up when a business owner falls behind on paying property taxes for commercial properties. Currently, when property taxes go unpaid, interest automatically accumulates on the overdue amount. This bill would create an option — though not a requirement — for local tax authorities to forgive that interest under certain circumstances.

The bill primarily affects owners of commercial properties, such as businesses, retail spaces, office buildings, and other non-residential properties. It also gives local governments and tax collectors more flexibility in how they handle tax collection. Rather than forcing property owners to pay the full amount of overdue taxes plus all accumulated interest, local officials would have the discretion to work out arrangements that waive some or all of the interest charges, potentially making it easier for struggling businesses to get back on track with their tax payments.

It is important to note that this bill does not cancel the actual taxes owed — only the interest on top of those taxes. Local governments are not required to offer these waivers; they would simply have the legal authority to do so if they choose. The bill has passed the full Rhode Island House of Representatives and has been referred to the Senate Finance Committee for further review.