Rhode Island business owners are set to see significant savings on their annual tax bills as a new statewide exemption on the tangible tax rate takes effect in July. The program, introduced by the General Assembly and signed into law by Governor Dan McKee last year, provides a $50,000 exemption for all tangible tax accounts beginning with the 2024 tax year, which starts on July 1st.
This exemption applies to all tangible personal property used in daily business operations, including items such as furniture, fixtures, and equipment. For businesses with more than $50,000 worth of tangible or personal property, taxes will only be applied to the value exceeding $50,000, still providing a substantial relief.
The City of Newport’s Tax Assessor’s Office reports approximately 2,000 tangible tax accounts on file. With the new exemption, the majority of these businesses are expected to pay nothing in tangible taxes, while the rest will benefit from the first $50,000 being exempt from their tax bills.
The Governor’s Office assures that the program will be budget neutral. The state will reimburse the city for the loss in revenue, following a model similar to the reimbursement for the phase-out of the vehicle excise tax.
Business owners with questions regarding the City’s tangible tax are encouraged to reach out to the Tax Assessor’s Office at assessorsinfo@cityofnewport.com.
This initiative marks a significant step in reducing the tax burden on Newport businesses, fostering a more business-friendly environment in the city.
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