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" on property taxes for people who own and live in their homes. Specifically, it would let municipalities reduce the taxable value of a primary residence by up to 20%. For example, if a home is assessed at $300,000, the town could choose to tax it as if it were only worth $240,000, potentially lowering the homeowner's property tax bill.

The bill also makes clear that if a municipality already offers a homestead exemption *greater* than 20%, it would not be restricted or penalized under this law — those communities can keep their more generous programs in place. This means the 20% figure acts as a floor that all towns are now *permitted* to offer, not a cap that limits what they can do.

This legislation primarily affects Rhode Island homeowners who use their property as their main residence. Renters and owners of investment or vacation properties would generally not qualify for this type of exemption. It's also important to note that this bill *allows* municipalities to offer the exemption — it does not *require* them to do so. Each city or town would still decide on its own whether to adopt the exemption and at what level, up to 20%.