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 Bill Summary: Property Tax Freeze Tied to Rent Control

This bill would create a direct link between rent control policies and property taxes in Rhode Island cities and towns. Specifically, if a city or town chooses to pass a rent control ordinance — meaning local rules that limit how much landlords can charge or increase rent — that same city or town would be prohibited from raising property taxes for as long as the rent control rules remain in place.

The bill affects two main groups. Landlords and property owners would benefit from the property tax freeze, since rent control limits the income they can collect from tenants. The bill appears designed to offset some of that financial impact by ensuring their property tax bills don't go up at the same time. Local governments would be directly constrained, as they would lose the ability to increase property tax revenue — one of their main funding sources for schools, roads, and public services — for the entire duration of any rent control ordinance they enact.

In practical terms, this bill could make cities and towns think twice before adopting rent control, since doing so would also mean giving up the ability to raise property taxes. Renters are not directly addressed in the bill itself, though they are the intended beneficiaries of any rent control ordinance a city might pass. The bill was recently introduced and referred to the Senate Housing and Municipal Government committee, where it will be reviewed before any further action is taken.