Narragansett Council debates real estate transfer tax for affordable housing funding

The Narragansett Town Council convened on April 7, 2025, to discuss a significant proposal aimed at addressing the town's pressing affordable housing and land preservation needs. The council voted unanimously to adopt a resolution requesting enabling legislation from the General Assembly to implement an additional real estate transfer tax. This tax would be levied on buyers of real estate in Narragansett, with the revenue earmarked for affordable housing initiatives and land conservancy efforts.

Councilor Tory All Day, who has been actively collaborating with the local land trust, emphasized the necessity of this funding stream. He noted that while the idea of a new tax may not be popular, it represents a viable solution to support both the land trust and affordable housing projects. The proposed tax would not affect current residents but would apply to new buyers, thereby encouraging investment in the community.

Cliff Tyler, vice chair of the Affordable Housing Trust Collaborative, voiced strong support for the resolution, highlighting that many municipalities across the country have successfully adopted similar measures to fund affordable housing. He pointed out that the enabling legislation would allow the town council to set specific parameters, such as the tax rate and exemptions for first-time homebuyers, ensuring flexibility in its implementation.

However, the discussion was not without concerns. Some council members expressed apprehension about the potential impact of an additional tax on new residents, especially in light of a proposed statewide transfer tax by the governor. They raised questions about the timing and urgency of the resolution, suggesting that a more thorough examination of the implications might be warranted before proceeding.

Despite these reservations, proponents of the resolution argued that the need for affordable housing in Narragansett is urgent, with rising property prices making it increasingly difficult for local workers, such as teachers and first responders, to find suitable housing. They stressed that the proposed tax would not impose a burden on current residents and could ultimately alleviate financial pressures on the town's budget by providing a dedicated funding source.

The council's decision to move forward with the resolution marks a critical step in addressing the community's housing challenges. As the enabling legislation is sent to the state, the council will have the opportunity to refine the specifics of the tax and its implementation, ensuring that it aligns with the town's broader goals of fostering a diverse and inclusive community. The urgency of the matter reflects the ongoing struggle many towns face in balancing growth with the need for affordable living options, making this a pivotal moment for Narragansett's future.