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HB 8485

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

2026 Regular Session Introduced by Marvin Abney and 9 co-sponsors

Rhode Island municipalities can tailor veteran tax exemptions and credits by ordinance, including prorated transfers when veterans move, across many towns.

05/07/2026 Committee recommended measure be held for further study
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Bill Summary · HB 8485

Summary of HB 8485 (Rhode Island, 2026) – Property Subject to Taxation

Purpose and Intent

HB 8485 authors new authorization for Rhode Island municipalities to modify, expand, or tailor property tax exemptions and credits for veterans and certain related groups. The bill aims to provide greater flexibility for towns and cities to grant, adjust, or transfer veteran-related exemptions and credits, including options for prorated exemptions when a veteran sells a property and purchases another. The act takes effect upon passage.

Key Provisions

  • Expanded eligibility and exemptions (Section 44-3-4(a))

    • The bill preserves existing primary exemptions for veterans but introduces broad authority for municipalities to set varying exemption amounts by ordinance, with limits defined for several towns (e.g., Burrillville, Cumberland, Cranston, Jamestown, Lincoln, Newport, New Shoreham, North Kingstown, North Providence, Smithfield, Warren, Westerly, Barrington, Exeter, Glocester, West Warwick, Warwick, Charlestown, Jamestown, Narragansett, Tiverton, and North Smithfield).
    • Exemption amounts range widely (e.g., up to $40,500 in Westerly; up to $10,000 in Lincoln; several towns can adjust exemptions for specific veteran categories such as those with 100% service-connected disability, total disability, partial disability, or other predefined statuses).

  • Ten-thousand-dollar base exemption for totally disabled veterans (Section 44-3-4(b))

    • An additional $10,000 local real property exemption is provided for veterans who are totally disabled through military service-connected disability (and their unmarried widow/widower), with occupancy requirements and specific exceptions by municipality (e.g., Cranston, Cumberland, Newport, New Shoreham, North Providence, Westerly, Lincoln, Narragansett, Tiverton, Jamestown, North Smithfield).

  • Additional targeted exemptions for war-disabled or special cases (Sections 44-3-4(c)–(e))

    • Various provisions authorize municipalities to grant additional exemptions or credits for certain categories, including veterans who are totally disabled but also own specially adapted housing, prisoners of war, and other service-connected disability statuses.
    • Notable flexible mechanisms include tax credits, credits against property assessments, and exemptions tied to life estates or certain home adaptations.

  • Special cases and local authority (Sections 44-3-4(h)–(m))

    • Specific towns (e.g., Bristol, Scituate) may create ordinances for partially disabled veterans, 100% disabled veterans, or other eligible categories.
    • Provisions allow for prorated exemptions upon sale and purchase of a new property, transferring the benefit to the subsequent property, aligning with the explanation in the bill’s explanatory section.

Who is Affected

  • Veterans and spouses/widows who qualify under federal VA disability determinations related to total, partial, or special conditions, and who reside in Rhode Island.
  • Municipal governments in the listed jurisdictions that would implement, adjust, or transfer exemptions/credits by ordinance.
  • Property owners within participating municipalities who may receive exemptions or credits, potentially affecting local taxation bills and property values.
  • Some provisions extend to fire/lighting districts where exemptions would apply.

Procedural and Timeline Aspects

  • Effective date: Upon passage of the act.
  • Process: Municipalities would use their existing home-rule authority to adopt ordinances detailing the exact exemption or credit amounts and eligibility, subject to the bill’s framework and any specific caps or triggers noted for each jurisdiction.
  • Transferability: Provisions explicitly authorize prorated exemptions for veterans who sell and buy new property within the tax year.

Bottom Line

HB 8485 expands municipal discretion to tailor veteran-related tax relief, allowing a mix of exemptions and credits by ordinance across many Rhode Island towns and cities. The bill facilitates prorated transfers of benefits when veterans relocate, and broadens the set of eligible categories, appealing to local flexibility while anchoring the framework in VA disability determinations.

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

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