In a recent Middletown government meeting, council members discussed potential reforms aimed at addressing the town's housing affordability crisis. A key proposal involves adjusting tax rates for property owners who rent their homes year-round, allowing them to qualify for a resident tax rate rather than the higher non-resident rate. This initiative is seen as a way to incentivize long-term rentals and alleviate some financial burdens on residents.

Councilor Chris highlighted the need for such measures, noting that the current split tax rate has disproportionately affected year-round renters, leading to increased rental prices. He emphasized that while this proposal is not a comprehensive solution, it represents a necessary step in a broader strategy to tackle housing affordability.

The discussion also referenced a recent report from RIPPEC, which criticized the inequities in the current tax structure and suggested that the town explore alternative revenue sources to reduce reliance on property taxes. Council members acknowledged that the town's revenue is heavily dependent on taxes from homes, which has led to rising costs for renters.

Councilor Emily expressed her support for the proposal, emphasizing the importance of creating incentives for homeowners to consider long-term rentals over short-term options. She noted that many young residents are unable to afford homes and are reliant on rental options, making it crucial to enhance the rental market.

Concerns were raised about the potential impact of the proposed changes on existing rental dynamics, particularly regarding the War College and Salve Regina University, which rely on short-term rentals. Some council members cautioned that pushing for year-round rentals could inadvertently harm these institutions.

The council ultimately agreed to draft an ordinance that would formalize the proposed tax adjustments while also gathering data to assess the broader implications of such changes. The meeting underscored the ongoing challenges facing Middletown in balancing the needs of residents, property owners, and the local economy in the face of rising housing costs.