WeVote
Log In

Bill

Bill

HB 6232

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

2025 Regular Session Introduced by Cherie Cruz and 4 co-sponsors

Pawtucket can redefine property tax classes to widen owner-occupied and small non-owner-occupied categories, with rates limited to 175% of the owner-occupied class.

06/04/2025 Signed by Governor
0
WeVote Research Nonpartisan
Bill Summary · HB 6232

Summary — HB 6232: Levy and Assessment of Local Taxes (Pawtucket property tax classification)

Status: Signed by Governor (06/04/2025)
Introduced: April 11, 2025 (Rhode Island, LC002719)
Note: the packet included an unrelated, truncated Michigan statute excerpt; this summary covers the Rhode Island enactment affecting the City of Pawtucket.

Purpose

To amend Pawtucket’s local property tax classification system by (1) revising which multi‑unit residential properties qualify as the lower‑rate residential class and (2) creating a new class for small non‑owner‑occupied residential properties, with limits on how much higher their tax rates may be relative to owner‑occupied residential property.

Key provisions

  • Authorizes the City of Pawtucket to use a property tax classification system (confirms existing local authority).
  • Revises class definitions for all ratable property in Pawtucket:
    • Class 1: Residential real estate of not more than six (6) dwelling units, and residential real estate of six (6) units where at least one unit is owner‑occupied. Includes owner‑occupied mobile/manufactured homes.
    • Class 2: Commercial and industrial real estate, plus residential real estate of six (6) units with no owner‑occupied units, and residential real estate with more than six (6) units.
    • Class 3: Ratable tangible personal property.
    • Class 4: Motor vehicles and trailers subject to excise.
    • Class 5: Residential real estate of not more than five (5) dwelling units in which no units are owner‑occupied; includes non‑owner‑occupied mobile/manufactured homes.
  • Where property has multiple uses resulting in different classes, the assessor must allocate value percentages to each use.
  • Assessor duties: by June 15 each year, make full and fair cash valuations and determine assessed valuations by class.
  • Finance director authority: may set different tax rates by class, but rates must be uniform within a class. For each year, tax rates for Class 2 and Class 5 may not exceed 175% of the Class 1 rate.
  • Effective date: upon passage.

Who is affected

  • Pawtucket property owners and occupants, especially owners of small multi‑unit residential buildings and non‑owner‑occupied rental properties.
  • Commercial and industrial property owners (classification reaffirmed).
  • City officials: assessors and the finance director (valuation and rate‑setting responsibilities).
  • Renters may experience indirect effects if tax changes are passed through in rents.

Likely impacts and considerations

  • Reclassifying six‑unit buildings with at least one owner‑occupied unit into Class 1 could lower tax rates for some small mixed owner/tenant properties.
  • Creating Class 5 (≤5 units, no owner occupancy) separates small rental/non‑owner properties from owner‑occupied residential, allowing differential rates; however, the 175% cap limits rate divergence versus owner‑occupied properties.
  • Net revenue effects depend on the tax rates the city chooses to apply across classes and any reallocation of taxable value between classes.

Procedural timeline (selected)

  • Introduced in House Municipal Government & Housing (04/11/2025).
  • Passed House and Senate; transmitted to Governor (06/03/2025).
  • Signed by Governor / Effective upon passage (06/04/2025).

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.