Qualification guidelines are set by RIGL § 44-5-12(a)(6). Application deadline is December 31st of each year.
Taxes on new construction 'development property' and foreclosed property are exempt from the assessment of taxes, as long as:
- An owner of 'development property' and 'foreclosed property' files an affidavit claiming the exemption with the local Town Assessor by December 31 each year.
- Exemption shall only apply to property which applies for or receives construction permits after July 1st.
- Exemption does not apply to Land.
- 'Development property' is defined as follows:
New Construction 'Development Property':
New residential single family or residential condominium construction that:
A. Is not occupied or has never been occupied
B. is not under contract
C. Is on the market for sale
Foreclosure/Auction and Bank Owned Property:
Improvement and/or rehabilitation of single family residential dwellings or residential condominiums which are not occupied and were purchased out of:
A. Foreclosure sale
B. is not under contract
C. Is on the market for sale
These properties shall continue to be taxed at the assessed value at the time of purchase until such property is sold or occupied and no longer qualifies as 'development property'. The exemption on each individual property shall not extend beyond two tax years. The Statue for this exemption shall expire as of December 31, 2026.