Council tasks administration and PEDC to design two-tier residential tax proposal for 2027 revaluation

The Fort Smith Town Council voted to task town administration and the Portsmouth Economic Development Committee with developing a two-tier residential tax proposal aimed at charging a higher rate on non-primary residences, short-term rentals and second homes.

Joe Forgione of the Portsmouth Economic Development Committee presented background and comparative examples from Newport and Middletown, where non-owner tiers range from roughly 18% to 30% premiums. Forgione told the council the committee's preliminary work suggested a modest premium on non-primary properties could fund a small reduction in the primary-residence rate for year-round residents.

Councilors said they favored moving forward but stressed the need for careful legal and technical work before asking the state for enabling legislation. Under Rhode Island law, municipal tiered residential taxation requires state enabling legislation; Forgione acknowledged that step and said a bill would need to be filed by the town's legislators and that the timetable would make implementation for FY2027 likely, following the full revaluation process.

Council members asked the administration to work with the assessor and with PEDC to gather data on owner-occupied versus non-primary parcels, estimate revenue effects, draft definitions (for example, how many months constitute a primary residence), and propose an outreach and certification process for property owners. The council amended the motion to explicitly include PEDC in the work.

The motion directing administration and PEDC to develop a proposal for adoption in time for implementation after the 2027 revaluation passed on a council voice vote.