Newport Businesses to Benefit from new State Tax Exemption

Thursday, May 16, 2024

$50,000 Tangible Tax Exemption Set to Take Effect July 1st
  
NEWPORT, R.I. (WEDNESDAY, MAY 15, 2024) – Newport business owners are poised to save on one of their annual tax bills as a statewide exemption on the tangible tax rate is set to take effect in July.

The program, which was passed last year by the General Assembly and signed into law by Gov. McKee, provides a $50,000 exemption to all tangible tax accounts beginning in the 2024 tax year beginning July 1^st. The exemption would apply to all tangible personal property used in day-to-day business operations including assets such as furniture, fixtures, and equipment.

Businesses with more than $50,000 worth of tangible or personal property, would have to pay the tax on assets above $50,000 but would still receive an equal amount of relief.

In Newport, the City’s Tax Assessor’s Office has roughly 2,000 tangible tax accounts on file. Under the new exemption, the vast majority of those businesses are expected to pay nothing in tangible taxes and the remainder eligible to have the first $50,000 exempt from their bill.

According the Governor’s Office, the program is expected to be budget neutral with the City reimbursed by State funds to account for the loss in revenue, similar to how municipalities have been reimbursed as part of the phase of the vehicle excise tax.

Business owners who have questions about the City’s tangible tax are welcome to contact the Tax Assessor’s Office at assesorsinfo@cityofnewport.com.