Rental Property Investor · Providence, RI · Member since 2018 · 75 posts · 35 votes
This is a question in regards to the Providence owner-occupied tax break on real estate. As I understand, you can get the full break on 1-4 units if you owner occupy the property. What about 5+ units you owner occupy? I know you don't get the full amount, but can you get partial? And what is the formula for calculating if so? Thanks!
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
7y
@Nelson Taylor it appears that residential includes up to 5 units, see Property Tax Classification in the Providence code of ordinances: "Classes of property. (1) Class 1. Residential real estate consisting of no more than five (5) dwelling units, land classified as open space, and dwellings on leased land including mobile homes. This class may also include residential properties containing partial commercial or business uses with no more than five (5) dwelling units. For the properties with both residential and commercial or business uses, the residential tax rate will be applied to the residential portion and the commercial tax rate will be applied to the commercial portion. This class shall be further subdivided into (a) owner-occupied and (b) non-owner occupied properties... Class 2. Commercial and industrial real estate, residential properties containing partial commercial or business uses and residential real estate of more than five (5) dwelling units. Properties containing partial commercial or business uses and residential real estate of more than five (5) dwelling units shall be included in class 2."
On the Frequently Asked Questions – Tax Assessor page it says: "DO I QUALIFY FOR ANY EXEMPTIONS ON MY COMMERCIAL PROPERTY? The only exemptions allowed on commercial property are; Veteran and Widow of Veteran. (Subject to qualifications)". That seems to match the information in the code of ordinances which only discusses a different tax rate under Class 1/residential, not Class 2/commercial.
Of course, for a definitive answer you could contact the tax assessor (BP won't let me post the phone # so click the Contact Us link on that page) or - even better, though more of a PITA of course - go down there in person. But the above is the best information I could find online.