PROVIDENCE – Gov. Gina M. Raimondo has signed into law legislation that would permit tax exemptions on new residential construction deemed development property by municipal assessors.
The law, sponsored by House Majority Whip Jay Edwards, D-Tiverton, and Sen. Michael J. McCaffrey, D-Warwick, was sought by the Rhode Island Builders Association, said Edwards. The governor signed the bill into law Thursday, a spokeswoman said.
The new law allows tax exemptions for property in two different cases, but not for land.
“This is going to put people back to work in the construction trades because it is going to allow builders to build on [speculation], and when they build homes they employ people,” said Edwards. “It will make it more affordable for contractors to have less of an outlay when building because they are working on such tight margins, so anything they can save is good for their bottom line.”
Construction deemed development property would be either a single family dwelling or condominium that is unoccupied, has never been occupied, and is not under contract or on the market for sale; or rehabilitation of unoccupied single family homes or condominiums that the owner purchased out of foreclosure, auction or from a bank, the law states.
The development designation cannot be extended past two tax years. Qualifying properties are those that have applied for or received construction permits after July 1, 2015, the legislation states.
The law is slated to sunset by Dec. 31, 2021.
