Prohibits cities or towns that implement a rent control ordinance from raising property taxes and such prohibition would last for as long as the rent control ordinance is in effect.

RI Property Tax/Rent Freeze Bill

This Rhode Island bill would create a direct link between rent control and property taxes at the local level. Specifically, if a city or town decides to pass a rent control ordinance — meaning a law that limits how much landlords can charge or increase rent — that same city or town would automatically be prohibited from raising property taxes. This freeze on property tax increases would remain in place for as long as the rent control ordinance stays active.

The bill affects two main groups of people. First, renters and landlords would be subject to any local rent control rules a city or town chooses to adopt. Second, and more broadly, all property owners in that city or town — including homeowners, businesses, and landlords — would benefit from the property tax freeze, since their local government could not increase property taxes during that period. Local governments themselves would also be significantly affected, as they would lose the ability to raise a key source of funding for public services like schools, roads, and emergency services.

In practical terms, this bill is designed so that cities and towns must weigh a significant tradeoff: if they want to implement rent control to help renters, they must accept restrictions on their ability to generate tax revenue. The bill is currently in its early stages, having been introduced and referred to the House Municipal Government & Housing Committee, where it is scheduled for a hearing.