Requires that the tax imposed upon the conveyance of any real property that is located in more than one municipality to be allocated between or among the municipalities in proportions to the assessed value of the property located in each municipality.

Plain-English Summary

When real estate is sold in Rhode Island, a tax is collected on that sale called the "real estate conveyance tax." This tax generates revenue for local municipalities (cities and towns). This bill addresses a specific situation: what happens when a single piece of property crosses the boundary of more than one town or city. Currently, there may be no clear rule for how to divide that tax money between the municipalities involved.

This bill establishes a straightforward formula for splitting up that tax revenue. If a property sits in two or more municipalities, the tax collected from its sale would be divided among those municipalities based on how much of the property's assessed value falls within each one's borders. For example, if 70% of a property's assessed value is in Town A and 30% is in Town B, then Town A would receive 70% of the tax and Town B would receive 30%.

This bill mainly affects local governments — particularly towns and cities that share boundaries where properties occasionally straddle municipal lines. It ensures each municipality gets a fair share of tax revenue based on how much of the taxable property actually lies within its jurisdiction. Property owners and buyers would not pay any additional taxes under this bill; it simply changes how the existing tax is distributed among local governments.

The bill has been introduced in the Rhode Island Senate and referred to the Senate Finance Committee for further review.