RI S2827

Exempts real and tangible personal property of urban farmers and urban farmland from property taxation, including one agricultural building per lot up to 2,500 square feet used for seed starting, storage, or processing of agricultural products

Defines "urban area" as any municipality incorporated as a city or with population density greater than 3,000 residents per square mile; "urban farmer" must file IRS Schedule F; "small farmer" operates fewer than 5 acres of agricultural land

Establishes graduated land use change tax (10% down to 0%) for properties that lose urban/small farmland status within 15 years of receiving the exemption, based on fair market value at time of conversion

Exempts income from food production by urban and small farmers from business corporation net income calculations under Rhode Island tax law

Exempts farm products used to grow food by urban and small farmers from state sales and use taxes, and extends existing farm structure construction materials sales tax exemption to include urban farming operations

Effective date: July 1, 2027