Municipal Taxes Economic Development Corporation Municipal Property Taxes Real estate and motor vehicles, and commercial tangible personal property is taxed by each of Rhode Islands 39 municipalities. There are no other property taxes with the exception of Fire District Taxes in several rural communities. Intangible property is not taxed.
Boats are exempt from the local property tax and also from the state sales tax.
The local tax is the only tax on property in Rhode Island with the exception of Fire District Taxes in several rural communities. The local property tax on motor vehicles is being phased out over 8 years beginning in 1999. The tax will be eliminated in 2006. Inventories of manufacturers located in Rhode Island are exempt from property taxes. Manufacturers' machinery and equipment used in the production process is exempt from property taxes.