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SB 2031

AN ACT RELATING TO TAXATION -- PROPERTY TAX RELIEF

2026 Regular Session Introduced by Frank Ciccone and 9 co-sponsors

The bill expands RI property tax relief by raising income limits and increasing max credit to 850 in 2027, with automatic CPI-U inflation adjustments.

05/12/2026 Committee heard
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WeVote Research Nonpartisan
Bill Summary · SB 2031

Summary of SB 2031 (Rhode Island) — 2026 Session

Purpose

SB 2031, “An Act Relating to Taxation — Property Tax Relief,” aims to modify and expand the existing property tax relief program for elderly and disabled residents who own or rent their homes. The bill seeks to increase both the income eligibility threshold and the maximum annual credit, while applying automatic adjustments for inflation.

Key Provisions and Changes

  • Credit determination (Section 44-33-9):

    • A claimant may receive a credit against Rhode Island personal income tax equal to the amount by which property taxes (or rent constituting property taxes) on the homestead exceed a percentage of total household income for the year.
    • The percentage threshold is based on income level and household size, with the following structure (income ranges and percentages):
    • 1 Person: 3% (income < $6,000), 4% ($6,001–$9,000), 5% ($9,001–$12,000), 6% ($12,001–$15,000), 6% (>$15,000 up to $35,000)
    • 2+ Persons: 3% (<$6,000), 4% ($6,001–$9,000), 5% ($9,001–$12,000), 5% ($12,001–$15,000), 6% (>$15,000 up to $50,000)
    • The above percentages are applied to determine the credit amount for the tax year.

  • Maximum credit amount (Section 44-33-9(2)):

    • The bill preserves the historical stepwise maximums for earlier years but outlines updated targets through inflation adjustments and future cap levels:
    • Historical and transitional references (from July 1977 onward) set specific dollar caps that increase over time to a maximum of $600 (from 2022 forward) and later $850 (from 2027 forward), with adjustments described below.
    • Starting in tax years beginning January 1, 2022, the maximum credit is $600.
    • Starting in tax years beginning January 1, 2027, the maximum credit is $850.
    • The expansion includes adjustments tied to net terminal income from video lottery games (this mechanism is described in the text for prior years’ increments) up to a cap of $5,000,000 in the calculation of increasing the credit to the next maximum amount, while ensuring the credit does not drop below the prior year.
    • In any event, the credit cannot be less than the prior year’s level.

  • Inflation adjustment (Section 44-33-9(2) and related language):

    • For tax years beginning on or after January 1, 2023:
    • The income range thresholds (in subsection (1)) and the maximum credit (in subsection (2)) shall be adjusted by the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) as published by the U.S. Department of Labor, determined as of September 30 of the prior calendar year.
    • Adjustments are compounded annually and rounded up to the nearest $5 increment.
    • The adjustments cannot produce an income range or maximum credit that’s less than the prior year.

  • Effective date (Section 2): The act takes effect upon passage.

Who would be Affected

  • Primary beneficiaries: Elderly and disabled Rhode Island residents who own or rent their homesteads and have income within the specified ranges.
  • Other affected parties: Taxpayers who claim the RI property tax relief credit, as the credit computation and maximums could alter net tax liability.
  • The program specifically targets households by size (1 person vs. 2 or more persons) and income level.

Procedural and Timeline Details

  • Introduction and referral: Introduced January 9, 2026, and referred to the Senate Finance Committee.
  • Schedule for consideration: The bill was scheduled for a hearing/consideration on or around May 12, 2026.
  • Effective date: Immediate upon passage (no delayed effective date).

Observations

  • The bill expands eligibility by increasing the income cap (up to $50,000 for eligibility under the income-based table) and raises the maximum annual credit to $850 beginning in 2027.
  • It codifies automatic CPI-U-based inflation adjustments to both the income thresholds and the maximum credit, ensuring year-to-year relevance.
  • It retains the structure of a credit that offsets property taxes or rent constituting property taxes and does so within a tiered framework based on household size.

If you’d like, I can provide a one-page plain-English briefing for policymakers, or a side-by-side comparison with the current law to highlight all substantive differences.

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

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