The #MiddletownRI Town Council plans on extending new tax breaks to residential landlords who rent longterm, with applications being accepted now thru May 1 with the tax department. Visit Tax Help for more.
TAX BREAKS PLANNED FOR RESIDENTIAL LANDLORDS WHO RENT LONGTERM
MIDDLETOWN, RI (MARCH 11, 2025) – Are you a landlord who rents out a home or apartment longterm in Middletown?
If so, the town might have some good news for you.
Recently, the Town Council unanimously approved a new tax break for residential landlords in hopes of boosting the number of available housing units across the community.
The idea of council President Paul M. Rodrigues and Councilor Chris Logan, the program has a May 1 deadline to submit the proper paperwork with the town’s tax office.
Applications are currently being accepted now by the town while the General Assembly considers modifying language this legislative session that clears the way for the local landlord tax benefit.
To learn more, visit https://mdl.town/Tax-Help online, drop by the tax office in Town Hall weekdays from 8 am-4 pm or call 401-847-7300, with staff available to help.
“After we implemented the Tiered Residential Tax Rate, this is something we heard from landlords that needed to happen,” Rodrigues said. “We’re always on the lookout for opportunities to grow our housing stock and help make Middletown more affordable for our residents.”
To view the recently approved ordinances, go to https://ri-middletown.civicplus.com/DocumentCenter/View/18109/Landlord-Longterm-Rental-Incentive online.
“From everything I’ve heard, this is another good way to help,” Logan added. “There’s no doubt we need more long-term rentals and this will give landlords more incentive to switch from short-term rentals to year round.”
Over the past several years, affordable housing has evolved into one of the main talking points across the community.
Local leaders, residents and businesspeople have said the cost of living here has risen too much and makes it difficult for working people and families to move or stay here.
In response, local leaders have taken a multi-prong approach to try to make Middletown more affordable.
A major step towards this goal was to approve a split residential tax rate in late 2021. Known as the Tiered Residential Tax Program (TRTP), thousands of homeowners have taken advantage of the incentive since, saving 30 percent on their current Fiscal 2025 tax bills.
In order to be eligible for that benefit, homeowners must be full-time residents and reapply every three years. The latest round of applications is due on March 15.
Since Jan. 1, applications were mailed twice to homeowners who were potentially eligible for the TRTP to make sure everyone was aware of the program.
The council and town officials have also worked hard to hold the line on new spending, aware of the fiscal realities facing many residents and businesspeople.
Going into the Fiscal 2026 budget season, Town Administrator Shawn J. Brown has told town department heads to hold the line on their proposed increases.
Brown submits the proposed Fiscal 2026 budget to the council on April 1. The council will hold its all-day budget workshop on April 26, a tradition in Middletown dating back years. Public hearings on the budget are scheduled for May 21 and 28, with the adoption of the figures expected at the end of the second public hearing.
Middletown has also tried to create affordable, workforce and senior housing of its own.
Three locations are being considered for those projects — 26 Oliphant Lane, 650 Green End Ave. and 361-393 East Main Road.
To date, the town’s plans for 26 Oliphant Lane and 650 Green End Ave. have not secured state funding, which would serve as a springboard for those proposals. Town officials have said they were told Middletown’s plans did not have enough units on each property, especially compared to other submissions across Rhode Island vying for state support.
Recently, new plans have been put together by Pennrose, Union Studio & Horsley Witten for those two sites. Under the latest designs, the number of total units has been increased to 72, up from 57 previously.
To review those plans, go to https://mdl.town/AH-Pennrose online. The council has a March 31 special meeting planned at 6 pm in Town Hall to go over that proposal and provide input.
That’s also not to say that new housing isn’t coming to Middletown. All told, there are about 500 new units of housing approved or on the boards, projects intended to increase the number of places for people to live.
The most noteworthy are the Middletown Center project at 600-740 West Main Road, which has 150 units, 15 of which are classified as affordable. Up the street at 1747 West Main Road, construction has started at Rosebrook Commons, a 144-unit project featuring one, two- and three-bedroom apartments.
Under the town’s regulations, any development that’s more than five units is considered commercial and would not be eligible for the residential landlord benefit.
Previously, Town Solicitor Peter Regan has said the tax break for longterm residential landlords has helped in neighboring Newport, which has similar ordinances on its books.
“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.”
Document Link: https://mdl.town/NYCU-Break
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.
Media Contact
Matt Sheley
Public Affairs Officer
401-842-6543
msheley@middletownri.com