This year at the Rhode Island State House:
A $14 billion state budget was passed by the General Assembly during the 2025 legislative session. It was a difficult year due to the elimination of pandemic funds and anticipated cuts to federal funding, which could bring the General Assembly back into session in the fall.
The Rhode Island Association of REALTORS® (RIAR) Government Affairs Committee monitored more than 300 bills and took an active stance on 236. Despite tight budgetary constraints, RIAR saw more wins than losses on the legislation it supported or opposed.
While property owners will see some tax increases from the RI FY2026 budget, predominantly due to last-minute surprises, the Government Affairs Committee is working to educate legislators on the unanticipated ramifications of the taxes before the start of the next session. Many thanks to everyone who joined us in communicating with our legislators.
Legislation Affecting Real Estate
H5264 | S0580
Rent Control
The Rhode Island Association of REALTORS® helped to defeat several bills that would have imposed rent control on residential rental properties. Rent control has been a failure in Massachusetts and other parts of the country because it discourages production of new rental housing and makes it difficult for landlords to afford repairs and improvements. More…
H5503 | S0212
Just Cause Evictions
The Rhode Island Association of REALTORS helped to defeat “just cause” legislation (S0212.pdf 5503) that would have abolished a landlord’s existing right to terminate any of the following for any reason: a month-to-month tenancy; a tenancy after a lease expires; or an unwritten rental agreement.
If this legislation had passed, it would have prevented landlords from evicting tenants unless the landlord could document that the eviction was for an acceptable purpose as defined in the legislation. More…
H5686 Ch 099 | S0626 Ch. 100
Municipalities Required to Publish CRMC Coastal Rights-of-Way
Senate Bill No. 626 (Chapter 100) went into effect upon passage on June 23, 2025 and requires the towns and cities to incorporate into maps all public rights of ways, that have been designated by the Coastal Resources Management Council to reach tidal areas, including shoreline and beach access. More…
H6093Aaa Ch. 265 | S0716aa Ch. 257
New Requirements Restricting Public Parking Near CCRC Shoreline Access
As of June 27, 2025, a new law affects towns, cities, private organizations, and private property owners who wish to reduce or eliminate parking near a Coastal Resources Management Council (CMRC) designated public right of water to the shoreline. These entities must file a plan that will be reviewed by CRMC and the Rhode Island Department of Environment Management (DEM). More…
H5156A Ch. 136 | S0509A Ch. 123
Two New Condominium Laws
Two new Rhode Island condominium laws went into effect upon passage on June 24, 2025. The first sets requirements for meetings, the second, for property insurance. More…
H5795A C. 263 | S1084A Ch. 264
Zoning Certificate Procedures
Starting on June 27, 2025, a new law, Chapters 263 and 264 requires towns and cities to issue a zoning certificate within 20 days of a written request, an increase from the previous deadline of 15 days. More…
H5811 Ch. 185 | S0936 Ch. 186
New Requirements for Real Estate Licensees Acting as a Mortgage Originator
A new Rhode Island law took effect that prohibits anyone who is licensed as a mortgage loan originator and a real estate broker or salesperson, from handling and being compensated to handle both roles in the same transaction. More…
H5563 | S0549 Ch. 176
New Requirements for Short-Term Rentals Human Trafficking Prevention Training
This new law requires operators of hotels or short-term rentals of 30 days or less to complete annual human trafficking prevention training that is approved and/or offered by the RI Department of Business Regulation within 180 days of employment or the first listing of a short-term rental property on a hosting platform. More…
H5185 | S0133
Unfair Residential Service Agreements
Enacted on June 13, 2025, S0549 prohibits the use and recording of service agreements that would be unfair to existing or future owners of residential property with 1 – 4 dwelling units that is used mainly for “personal, family or household purposes.” The law prohibits agreements for the maintenance of, purchase, or sale of residential real estate that can’t be completed within a year, with some exemptions. More…
H5955 Ch. 275
R.I. Land Bank Created for Affordable Housing
A new Rhode Island law to establish a land bank took place upon passage on June 27, 2025. The law requires Rhode Island Housing to create a public land bank to purchase land or receive it as a donation to create affordable housing. More…
Budget Articles Affecting Real Estate
5076 SUB A as amended
Three New Tax Laws
Moving forward, property owners should take note of new taxes introduced in the recently passed RI FY 2026 budget that impact residential real estate. Whether homeowners are offering short-term vacation rentals, selling their home, or own a non-owner-occupied second property valued over $1 million, new or increased taxes will become a part of their ongoing expenses. More…
Budget, Article 5 Section
Whole Home Short-Term Rental Tax
Though for years, Rhode Island property owners have managed to stave off the extension of the hotel lodging tax to whole-home and -condos rented for less than 30 days, this year the General Assembly voted to approve the bill. Starting on January 1, 2026, whole-homes and -condominiums rented less than 30 days will incur a 5% whole-home tax in addition to a 7% state sales tax and a 2% local hotel tax, which increased from 1%. Learn more
Budget Article 5 Section 10
Residential Conveyance
Just days before the legislative session ended in June, 2025, the House approved tax increases and new taxes on real estate. As a result, the state budget passed with increases to the conveyance tax on sales of real estate and the interest in an acquired real estate company that close on or after October 1, 2025. Even if a purchase and sales agreement is signed before October 1st, the closing date is what triggers the tax.
Sellers are responsible for paying the tax unless otherwise agreed by the seller and buyer. The tax rate varies based on the amount of the purchase price that is recorded on the deed. See details on RIRealtors.org
Budget Article 5 Section 18
Tax on Non-Owner-Occupied Residences Assessed Over $1 Million
Just days before the session ended, the House released a budget that included a new annual sales tax on non-owner-occupied properties assessed at more than $1 million. Amounts over $1 million will be taxed at $2.50/500 beginning July 1, 2026. There was no opportunity for testimony on this bill, which passed despite far-reaching media outreach. RIAR will continue to educate legislators about the unintended consequences before the start of the next legislative session.