AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

2026 Regular Session Introduced by Terri Cortvriend and 9 co-sponsors

Rhode Island towns can waive up to $500 of interest on one overdue property tax payment for eligible residential or commercial properties, with quarterly payment options.

06/18/2026 Signed by Governor

Bill Summary: HB 7568 (Rhode Island, 2026) – AN ACT RELATING TO TAXATION — LEVY AND ASSESSMENT OF LOCAL TAXES

Main purpose and intent

Allow Rhode Island cities and towns to waive up to $500 in interest on overdue property tax bills, under specified conditions, and enable remaining overdue taxes to be paid in quarterly installments.

Targeted at overdue taxes on residential and commercial properties, with emphasis on providing relief to taxpayers meeting certain historical payment and ownership criteria.

Key provisions and changes

Amends Rhode Island General Laws § 44-5-8.1 to authorize, by local ordinance, a waiver of interest on one quarter’s overdue property tax payment.

Conditions for eligibility (must be satisfied by the taxpayer):

The overdue property is the taxpayer’s residence or commercial property, and has been for the five years immediately prior to the overdue payment.
The waiver request is in writing and signed/date-stamped by the taxpayer.
The taxpayer has made timely tax payments to the city or town for the five years preceding the overdue payment (burden of proof on the taxpayer).
The bill for the overdue payment was issued less than two years prior to the waiver request.

Cap on waiver: The waiver of interest cannot exceed $500.

Administrative process: Decisions by the tax collector must be in writing and include notice to the city/town council. If the taxpayer is denied, the taxpayer must still pay the interest and may file a reimbursement claim with the city/town council within 10 days of the decision.

Local adoption: The waiver mechanism is contingent on a duly enacted local ordinance by each city or town.

Effective date: The act takes effect upon passage.

Who and what is affected

Property taxpayers in Rhode Island cities and towns, specifically:

Homeowners and commercial property owners with overdue quarterly property tax payments.

Local governments (cities and towns) that would implement the waiver program via ordinance.

Tax collectors and city/town councils overseeing and adjudicating waiver requests and reimbursements.

Procedural and timeline aspects

Legislative history shows standard bill progression:

Introduced February 6, 2026; referred to House Municipal Government & Housing.
Passed House (March 31, 2026); forwarded to Senate Finance (April 3, 2026).
Scheduled for Senate consideration in June 2026.

Effective date: Immediate upon passage (no separate transition period).

Potential impact and considerations

Financial relief for eligible taxpayers facing overdue taxes, potentially improving housing and business stability where overdue payments existed.

Municipal budgeting and cash flow implications depend on local adoption and the frequency of waivers granted; waivers could reduce interest revenue by up to $500 per qualifying case.

Requirements place burden on taxpayers to prove timely payments and ownership duration; municipalities retain authority to approve or deny via local ordinance and must provide written decisions.

Could influence taxpayer behavior by encouraging timely future payments and accommodating temporary financial hardship.

Bill