Continuing efforts to help make #MiddletownRI more affordable for residents and create housing, the Town Council considers a plan to give landlords a sizable tax break for renting their property long term.
LONG-TERM LANDLORDS MIGHT GET TAX BREAK
MIDDLETOWN, R.I. (FEBRUARY 24, 2025) – Middletown is looking at giving landlords who rent residential property long-term a tax break.
The idea of Town Council President Paul Rodrigues and Councilor Christopher Logan, they said the aim was to help grow the number of housing units available for rent year round across the community.
Speaking on the plan at a recent council meeting, Town Solicitor Peter Regan said much of the language in the ordinance was cribbed from regulations already on the books in Newport.
Before the new rules go into effect, the council has a second hearing on the amendments at its next meeting on March 3 at 6:30 pm in Town Hall.
“There’s no one way to solve the housing crisis…” Rodrigues said. “We’re trying to do the right thing and protect our residents.”
Making Middletown more affordable while also creating housing has been a major topic of conversation in recent years here — and throughout the United States.
Instead of sitting back and letting the market take its course, the council has been aggressively working to push back.
The town has submitted multiple affordable housing projects to the state for funding, but those plans have come up short so far. The town has heard its plans didn’t provide the necessary number of units to earn state support, especially compared to other projects across the Ocean State.
Proposed affordable development sites include 26 Oliphant Lane where school administrative offices are located, 650 Green End Ave. next to the Middletown Senior Center as well as 361-393 East Main Road across from Town Hall.
Repeating a familiar refrain, Town Administrator Shawn J. Brown has called for department heads to hold their budget asks for Fiscal 2026 to 2 percent — or less. Privately, Brown has told staff its imperative to hold the line on spending given a tight economy and realities facing many residents and businesspeople.
The Town Council approved a new tax policy in late 2021 to help residents who live full time in their homes. Known as the Tiered Residential Tax Program (TRTP), thousands of locals have saved on their annual tax bills since.
The town’s tax office is accepting applications for the TRTP and other tax breaks now through March 15. To apply, visit https://mdl.town/Tax-Help online, visit the Tax Assessor’s office on the first floor of Town Hall during normal business hours or call 401-847-7300.
During a lengthy question-and-answer session with the council, Regan explained the ins and outs of the program, which would apply to residential units rented for a year or more.
Regan said a landlord would be eligible to receive the owner-occupied residential TRTP tax rate only if all dwelling units on the property were either owner occupied or rented with a long-term lease of at least one year.
He added the enhanced landlord TRTP applied to residential real estate with five units or less. He said residential real estate more than five units was considered commercial and taxed under a different set of standards.
Should the council approve the landlord TRTP benefit, Regan suggested the deadline for all applications be pushed back to May 1.
That way, he said landlords would have enough time to analyze the new program and determine whether it made sense for them.
At the same time, to delay the landlord TRTP benefit further into the year would likely interfere with the preparation of the Fiscal 2026 budget, which normally wraps up in late May.
To view a copy of Regan’s presentation to the council, visit https://mdl.town/Landlord-TRTP online. For the proposed ordinance itself, go to https://mdl.town/Landlord-TRTP-Ordinance online.
Speaking from experience, Regan said he’s seen clients in Newport decide to turn units they’d been renting on a short-term basis into long-term rentals.
“I have clients that own investment properties in Newport and several of them have told me that this made the difference between them renting those properties short term and renting them long term,” Regan said. “The tax break and not having to deal with the hassle of short-term rentals.”
“That’s the property owner’s decision,” Rodrigues said. “This will be available not just to Middletown residents, but everyone that has property and a second home. It could open up long term uses for workforce housing potentially, any type of housing. We’re trying to do the best we can.”
Document Link: https://mdl.town/NYCU-Landlord
About Middletown
The Town of Middletown is a vibrant municipality located on Aquidneck Island, known for its scenic beauty, historic landmarks, diverse economy and strong sense of community. For more information about all we have to offer, visit MiddletownRI.gov online.
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