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HB 8436

AN ACT RELATING TO TAXATION-PROPERTY SUBJECT TO TAXATION -- GLOCESTER -- EXEMPTION OF ELDERLY AND DISABLED PERSONS

2026 Regular Session Introduced by Mike Chippendale and 2 co-sponsors

Glocester may create local tax credits and exemptions for owner-occupied homes of seniors or disabled residents, including income-based reductions and CPI adjustments.

06/24/2026 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · HB 8436

Summary of HB 8436 (Rhode Island, 2026) – Glocester Exemption of Elderly and Disabled Persons

Purpose and Intent

  • This bill amends the state law governing property tax exemptions in the town of Glocester.
  • It authorizes Glocester to adopt ordinances creating tax credits and exemptions for qualifying elderly and disabled property owners, aligning local practice with state-authorized authorities while allowing additional local options.

Key Provisions and Changes

Tax Credits for Exemptions (Section 44-3-13.5)

  • Glocester may enact ordinances to provide:
    • A real property tax credit for owner-occupied property owned by:
    • Persons 65+ or permanently disabled individuals under 65.
    • Base credit amount: $1,150, adjustable annually by:
    • The rate of the annual tax increase.
    • Multiplied by the per-$1,000 average valuation of exempted properties.
    • A secondary credit for owners with combined adjusted gross taxable annual income not to exceed $23,000 (income threshold adjusted annually by CPI-U).
    • Additional credits:
      • 65 to under 80 years old: up to $1,500
      • 80 years or older: up to $4,500
  • The credits apply to real property in Glocester and are prorated among co-owners.
  • Only one exemption/credit may be granted to co-tenants or tenants by the entirety, even if multiple owners qualify.
  • These credits are in addition to any other exemptions and apply notwithstanding § 44-3-15.

Base Exemptions and Additional Local Provisions (Section 44-3-13.5)

  • Glocester may establish:
    1. A base exemption for owner-occupied property for those 65+ or disabled under 65, up to $2,070 (CPI-U indexed annually).
    2. An additional exemption for owners 80+ for up to $1,000 (may be adjusted by ordinance).
    3. A minimum tax provision requiring qualifying homeowners to pay at least a minimum annual tax amount set by ordinance.
    4. A variable income exemption for pre-established qualified owner-occupants:
      • Income limits set by ordinance.
      • May exclude Social Security from income.
      • Administered at rates/levels set by ordinance with annual income verification.
    5. Annual CPI-U adjustments for the income threshold of the variable income exemption (non-compounded methodology).
  • No income limit applies to exemptions under (a)(1) and (a)(2) for those qualifying after the ordinance-established date.

Administration and Eligibility (Sections c and d)

  • Local eligibility criteria to be set by town ordinance, including:
    • Proof of age, ownership, domicile, and disability (with physician certification as needed).
    • Application procedures, deadlines, and income verification documentation.
  • Exemptions shall be prorated and applied uniformly; only one exemption per property for co-owners.

Effective Date

  • The act takes effect upon passage.

Who/What Is Affected

  • Real property situated in the town of Glocester that is owner-occupied by:
    • Individuals aged 65+ or permanently disabled (under 65).
    • Households with income at or below thresholds set by ordinance (up to $23,000 for some credits, with CPI-U adjustments over time).
  • Co-owners of qualifying properties (only one exemption/credit per property, even if multiple owners qualify).

Procedural and Timeline Aspects

  • Introduced: April 10, 2026.
  • Referred to House Municipal Government & Housing.
  • Committee action: April 29, 2026 – recommended "held for further study."
  • The act becomes effective upon passage.

Notes

  • The bill seeks to harmonize Glocester’s local tax-relief framework with state authorities by allowing non-compounding CPI-based adjustments and income-based variable exemptions, while maintaining uniform application and ongoing eligibility verification.

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

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