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HB 8484

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

2026 Regular Session Introduced by Karen Alzate and 6 co-sponsors

The bill broadens and clarifies property tax exemptions for many entities and allows local governments to grant targeted tangible personal property exemptions to spur local develop

06/26/2026 Effective without Governor's signature
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Bill Summary · HB 8484

Summary of HB 8484 (2026) – Rhode Island

Purpose and Intent

HB 8484 is an act relating to taxation of property subject to taxation. Its central purpose is to clarify and expand exemptions from property tax, and to provide potential targeted relief or incentives for specific organizations and activities. The bill aims to codify exemptions, update definitions related to manufacturing and other property uses, and authorize local governments to grant selective exemptions for tangible personal property to stimulate economic development or support community organizations.

Key Provisions and Changes

  • Expanded and Specific Exemptions (Section 1(a))

    • The bill reaffirmed and enumerates numerous exemptions from property taxation, some existing and others potentially clarified or adjusted, for various categories including:
    • State lands and U.S. lands
    • Government bonds and securities
    • Military-related real estate used by National Guard and related groups
    • Religious and educational facilities, with specific acreage limitations
    • Dwellings and land for religious organizations used by clergy
    • Intangible property owned by religious/charitable organizations
    • Educational institutions, libraries, veterans’ organizations, fraternal organizations, and fire/ambulance services
    • Various non-profit institutions and facilities (hospitals, museums, theaters, health centers, cultural and charitable organizations)
    • Specific properties in certain towns (e.g., Charlestown, Smithfield, Cranston, Providence, Woonsocket, East Providence, etc.)
    • Renewable energy resources used in residential systems, and renewable resources used by manufacturers
    • Certain real and personal properties tied to state and local preservation, youth, and cultural programs
    • A broad list of named Rhode Island nonprofit organizations and facilities are exempt from taxation, subject to meeting criteria (e.g., Section 501(c)(3) status or specific local designations)

  • For-Profit Hospital Tax Valuation (Section 1(b))

    • Sets the valuation framework when a nonprofit hospital facility becomes or converts to a for-profit hospital:
    • Real and personal property valuations are based on the most recent full revaluation or assessment updates, with a special initial valuation for the first year of conversion or establishment.
    • Provides a right of appeal to the local assessor and, if needed, to the Rhode Island Superior Court Business Calendar.
    • Allows stabilization agreements under § 44-3-9 or other laws, with the consideration that the initial year levies related to the for-profit entity may be exempt from calculating the levy cap for that year.

  • Local Exemption Authority for Tangible Personal Property (Section 1(c))

    • Empowers cities, towns, or fire districts to establish exemptions for tangible personal property within their borders by formal action, provided these exemptions are uniformly applied and comply with local tax classification requirements (and conform to required statutory sections).

  • Effective Date (Section 2)

    • The act takes effect upon passage.

Who and What Would Be Affected

  • Property Owners and Taxpayers:

    • Many nonprofit organizations, hospitals (for-profit conversions), cultural institutions, libraries, religious groups, veterans and fraternal organizations, and other charitable entities potentially gain exemption from property taxes under the enumerated categories.
    • Local governments gain authority to grant tangible personal property exemptions in a targeted and uniform manner.

  • Local Governments and Assessors:

    • Assessors would apply and administer exemptions, including handling appeals for for-profit hospital conversions.
    • Municipalities would have enhanced flexibility to tailor exemptions to local economic development goals.

  • Businesses and Economic Development:

    • The exemption framework for tangible personal property and renewable energy equipment could influence business investment and modernization decisions.

Procedural and Timeline Aspects

  • The bill was introduced on April 29, 2026, and referred to the House Municipal Government & Housing committee.
  • It takes effect immediately upon passage.
  • For-profit hospital conversion provisions include a formal appeals pathway to the Superior Court and allow for stabilization agreements, which can influence levy calculations in the transition year.

Overall, HB 8484 broadens and clarifies property tax exemptions, adds local flexibility for exemptions on tangible personal property, and addresses valuation in the context of nonprofit-to-for-profit hospital transitions.

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

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