Defines a seasonably-habitable non-owner occupied residence, which is not the primary residence of the taxpayer, and which would be exempt from the non-owner occupied property tax.

Rhode Island Senate Bill: Non-Owner Occupied Property Tax Exemption for Seasonal Homes

This bill would create a new exemption from Rhode Island's non-owner occupied property tax for certain seasonal homes. Specifically, it defines a category called a "seasonably-habitable non-owner occupied residence" — meaning a property that someone owns but does not live in as their main home, and that is only suitable or intended to be lived in during certain times of the year (like a summer cottage or beach house). Properties that fit this definition would not be subject to the additional tax that Rhode Island currently charges on non-owner occupied properties.

The non-owner occupied property tax generally applies to properties where the owner does not live as their primary residence, such as rental properties or second homes. This bill would carve out an exception for seasonal properties, recognizing that these types of homes are different from year-round investment or rental properties. The exact details of how "seasonably-habitable" would be defined in law are central to how broadly or narrowly this exemption would apply.

This bill would primarily affect Rhode Island property owners who own a seasonal or vacation home in the state that is not their main residence. If passed, those owners could see a reduction in their property tax bill by avoiding the non-owner occupied tax. Local governments that currently collect this tax could potentially see some reduction in tax revenue depending on how many properties qualify for the exemption. The bill is currently in early stages, having been referred to the Senate Housing and Municipal Government Committee for further review.