Rhode Island Property Tax Information
Rhode Island tax rates vary tremendously by locality for both residential and commercial property, and the average rate is among the highest in the nation. Businesses are especially hard-hit when their taxes are compared to other states and metropolitan areas like Providence. Commercial taxpayers in Providence paid the fourth highest taxes in 2014 according to a comparative study conducted by the Minnesota Center for Fiscal Excellence and the Lincoln Institute of Land Policy. Rhode Island topped the list in 2011 and 2012 and placed second in 2013. The average effective property tax rate for all taxpayers averaged 1.55 percent, which is the 10th highest in the country. The state has recognized its tax problem and is now attempting to attract new business development with various incentives including a tax freeze on rates and tax breaks for commercial and industrial businesses.
Rhode Island Property Taxes History
Providence serves as a good example of how taxes progressed in the state to their current comparatively high levels. Localities set their own tax rates for real estate and business properties, and for many years, Providence charged the same tax rate for commercial and residential property to generate about a 50-50 split in revenue. In the late 1980s, revaluation showed that residential property values had increased, which resulted in an uneven split. The state’s general assembly granted localities the power to offer residential homeowners partial tax exemptions. Providence kept its equal tax rate, but homestead exemptions resulted in commercial taxpayers paying an effective rate that was twice as high as residential taxpayers. Over the last 30 years, the pendulum has swung the other way, which has hurt economic development and growth.
Business Equipment Property Taxes in Rhode Island
Rhode Island taxes equipment and real estate based on 100 percent of fair market value in most localities except for Block Island, which assesses taxes on 80 percent of market value. Unfortunately, in a sluggish economy, real-world business valuation often falls below fair market value in areas where business is booming, but these lower appraisals aren’t always reflected in third-party assessments for cities and municipalities in the state.
New and Pending Legislative Relief for Business
In 2016 and beyond, businesses face a better overall tax picture due to recently passed legislation that includes substantial incentives for business. These breaks include repealing the sales tax on energy and providing tax credits for real estate development, tax increment financing for new projects, tax stabilization agreements and small business assistance programs. The state also initiated a voucher program to mitigate the costs of research and development and a grant program for developing industry clusters.
Assessment Technology Provides Expert Tax Curation Services
Each business is different, and each location and industry has unique drawbacks, tax considerations, local incentives and exemptions. Finding everything about a location and its tax situation doesn’t just depend on its personal property and real estate tax rates, and local governments do make errors in assessments that usually favor the government. Assessment Technology experts can advise you about new and existing tax benefits, exemptions and incentives that businesses may have overlooked. If a company’s real assets are assessed too high, Assessment Technology investigators have the skill, experience and resources to convince officials to lower the appraisal. These experts will conduct an unbiased examination of the relevant criteria that are involved in making fair valuations of business assets and aggressively pursue getting lower assessments for clients.
Rhode Island Property Tax Resource: http://publicrecords.onlinesearches.com/Rhode-Island-Assessor-and-Property-Tax-Records.htm