Property Tax Relief for Elderly and Disabled (Circuit Breaker)

State

Rhode Island

Year

2020

Variations in Receipt of Benefit

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Benefit Type

Circuit Breaker

Benefit

This program provides a refundable tax credit to eligible homeowners and renters. The credit is based on property taxes in excess of income. The maximum property tax relief credit is $385. There are 5 income brackets for all filers. For those with income less than $6,000, the credit is the taxes in excess of 3% of income. For those in the top bracket, $15,001 to $30,000, the credit is the taxes in excess of 6% of income. For renters, property taxes are assumed to be 20% of gross rent, excluding utilities. Applications must be filed by 15 April in order to qualify for a credit in that year.

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Renter

Description of Eligibility Criteria

Must be 65 years or older and/or disabled. Eligible renters must have rented the home for the entire year. To be eligible for the disability requirement an individual must be receiving a social security disability benefit or Supplemental Security Income (SSI) payments. Total household income may not exceed $30,000.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state makes the payment to the taxpayer.

Record ID

RI101_RR20

Footnotes

Maximum credit may increase based on a formula of net terminal income generated by the state authorized video lottery games.

Sources

R.I. Gen. Laws § 44-33-1 ~ § 44-33-19 (in effect for 2020)
Rhode Island Division of Taxation 2019 Form RI-1040H Application and Instructions (filed in 2020, based on 2019 income)
[http://www.tax.ri.gov/forms/2019/Income/2019%20RI-1040H_m.pdf Accessed 11/10/2021]
View Archived Source

Rhode Island, Department of Taxation, Rhode Island Tax News, pp. 12 & 17, 2020
[http://www.tax.ri.gov/newsletter/Rhode_Island_Division_of_Taxation_Newsletter_Filing_Season_2020.pdf Accessed 11/10/2021]
View Archived Source
Rhode Island Division of Taxation Personal Income Tax Forms
[http://www.tax.ri.gov/taxforms/personal.php Accessed 02/20/2021]

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