City of Newport: New Statewide Property Tax Exemption for Local Businesses
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City of Newport: New Statewide Property Tax Exemption for Local Businesses

Nearly 1,600 Newport business owners won’t receive a property tax bill this year because a new statewide tax exemption goes into effect this month, according to the city of Newport.

The program, which was passed last year by the General Assembly and signed by Gov. McKee, provides a $50,000 exemption for every business owner starting July 1.

The City of Newport said in a news release that owners with more than one business in Newport will see the exemption split evenly across all of their accounts.

The exemption applies to any tangible personal property used in the day-to-day running of a business, including assets such as furniture, fixtures and equipment.

Businesses with tangible or movable assets worth more than $50,000 will have to pay tax on assets above $50,000, but will still receive the same relief.

In Newport, the City Tax Assessment Office has about 2,000 tangible tax accounts on file. Under the new exemption, the vast majority of these businesses will pay nothing in tangible taxes, while the rest will be eligible to exempt the first $50,000 of the account.

The Governor’s office said there will be no budget impact from this program and the city will receive a state reimbursement to cover the loss of revenue, similar to how municipalities were reimbursed under the Motor Vehicle Excise Tax phase.

Business owners with questions about city property taxes can contact the Tax Assessment Office at [email protected].