According to the City of Newport, nearly 1,600 Newport business owners will not receive a Tangible Tax bill this year as a new statewide exemption goes into effect this month.
The program, which was passed last year by the General Assembly and signed into law by Gov. McKee, provides a $50,000 exemption per business owner beginning July 1st.
In a press release, the City of Newport says owners with more than one business in Newport will see that exemption divided equally against all of their accounts.
The exemption applies 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, will have to pay the tax on assets above $50,000 but would still receive an equal amount of relief.
In Newport, the City’s Tax Assessor’s Office has roughly 2,000 tangible tax accounts on file. Under the new exemption, the vast majority of those businesses are expected to pay nothing in tangible taxes and the remainder eligible to have the first $50,000 exempt from their bill.
According the Governor’s Office, the program is expected to be budget neutral with the City reimbursed by State funds to account for the loss in revenue, similar to how municipalities have been reimbursed as part of the phase of the vehicle excise tax.
Business owners who have questions about the City’s tangible tax are welcome to contact the Tax Assessor’s Office at assesorsinfo@cityofnewport.com.
