Newport business owners are poised to save on one of their annual tax bills, according to the City of Newport. A statewide exemption on the tangible tax rate will take effect in July.
The program, which was passed last year by the General Assembly and signed into law by Gov. McKee, provides a $50,000 exemption to all tangible tax accounts beginning in the 2024 tax year beginning July 1st.
In a press release, the City of Newport shares that the exemption would apply to all tangible personal property used in day-to-day business operations, including assets such as furniture, fixtures, and equipment.
Businesses with more than $50,000 worth of tangible or personal property would have to pay the tax on assets above $50,000 but would still receive equal relief.
The City’s Tax Assessor’s Office in Newport has roughly 2,000 tangible tax accounts on file. Under the new exemption, most of those businesses are expected to pay nothing in tangible taxes, and the remainder are eligible to have the first $50,000 exempt from their bill.
According to the Governor’s Office, the program is expected to be budget neutral, with the City reimbursed by State funds to account for the revenue loss, similar to how municipalities have been reimbursed as part of the phase of the vehicle excise tax.
Business owners with questions about the City’s tangible tax are welcome to contact the Tax Assessor’s Office at assesorsinfo@cityofnewport.com.
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