Any residential property that has been issued an occupancy permit on or after January 1, 1995, after substantial rehabilitation as defined by the U.S. Department of Housing and Urban Development and is encumbered by a covenant recorded in the land records in favor of a governmental unit or Rhode Island housing and mortgage finance corporation restricting either or both the rents that may be charged to tenants of the property or the incomes of the occupants of the property, is subject to a tax that equals eight percent (8%) of the property’s previous years’ gross scheduled rental income or a lesser percentage as determined by each municipality.
(P.L. 1995, ch. 372, § 2; P.L. 1995, ch. 375, § 2.)
Terms Used In Rhode
- corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the department of revenue. See Rhode Island General Laws 44-5-43
- mortgage: The written agreement pledging property to a creditor as collateral for a loan.