Property taxes are creating financial hardships for many Rhode Island families – especially those on fixed incomes and those trying to purchase their first home. A recent poll commissioned by RIPEC asked “which tax (property, income or sales) would you want to see permanently reduced?” Nearly 58.0 percent of respondents said the property tax. The results were consistent among demographic sub- groups of voters (income, age, party preference, and ideology) indicating that property tax relief is a key concern among Rhode Island citizens.
This RIPEC report presents property tax trends in Rhode Island, including property value and levy trends, tax rates, and tax burden measures by city and town. The report includes several methods of measuring property tax burdens including the estimated property tax on a $350,000 home in each municipality. Click here to see the full report.
- Since FY 1996, the full market value of property statewide has been growing at an average annual rate of 8.5 percent (unadjusted). Since FY 2000, the estimated full value statewide has doubled – primarily driven by residential markets.
- Since FY 1996, the total property tax levy statewide has grown at an average annual rate of 4.2 percent (unadjusted). In FY 2006, 55.8 percent of the levy was allocated to support education – up from 51.7 percent in FY 1996.
- In FY 2006, estimated effective tax burdens on a home worth $350,000 ranged from 1.74 percent in Coventry to 0.29 percent in New Shoreham.
- In FY 2006, effective tax burdens on a $1.2 million commercial property ranged from 3.71 percent in Central Falls to 0.28 percent in New Shoreham.
- Residential property tax burdens are highest among suburban and rural communities, while commercial tax burdens are highest among urban communities, reflecting an ability to shift the burden to non-residential property.