— For the past decade, the average property tax in Rhode Islands has dropped by more than half.
Now, it’s down to $2.75 per $1,000 of taxable income, down from the $3.75 average in 2012.
The average property taxes paid by the wealthiest Rhode Islanders are down by nearly two-thirds since 2013, according to a report released Friday by the Rhode Island Taxpayers Union.
The report by the tax-exempt, nonprofit organization showed that the average Rhode Island property tax is now $2,907, down 9.3% from last year and down 14.6% from the lowest tax rate in 2013.
Property taxes paid in 2016 fell 7.6%, from $2.,907 to $1.8.
In addition, the report showed that statewide property taxes have decreased by nearly $1 billion since the 2012 election.
That’s a decrease of $1 million, or nearly 13%, since the state adopted a statewide property tax for property owners, which was scheduled to take effect in January 2018.
The tax-reduction bill signed into law by Gov.
Gina Raimondo in January will bring the state’s tax burden down to about $1 per $100 of taxable annual income by 2020.
It will take effect on July 1, 2021.
It will be one of the largest tax relief bills in Rhode’s history.
It would lower the top property tax rate from 7.75% to 5.75%, bring the property tax relief rate to 8% from 10% and bring the number of tax credits to 7,700.
The legislation also calls for increasing the state income tax rate to 7.25% from 7%, bringing the rate to 11.25%, and reducing the corporate income tax rates to 4.75%.
It also calls on the Legislature to enact a statewide sales tax increase and eliminate income tax deductions for state employees.
The bill would eliminate the income tax deduction for state and local government employees, eliminate the state sales tax deduction and eliminate the estate tax deduction.
It also reduces the state business income tax to 3% from 4%, eliminates the state payroll tax exemption and eliminates the personal income tax exemption.