2012 -- H 7142

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LC00519

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TAXATION

     Introduced By: Representatives Nunes, Tanzi, Marcello, and Silva

     Date Introduced: January 17, 2012

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-5-8 of the General Laws in Chapter 44-5 entitled "Levy and

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Assessment of Local Taxes" is hereby amended to read as follows:

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     44-5-8. Form of option for quarterly payment. -- (a) The option to allow payment of

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taxes in installments shall be expressed in substantially the following form:

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      "The tax may be paid in ____ installments, the first installment of ____ percent on or

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before the ____ day of ____ A.D. 20____ : (proportions and dates to be specified.)"

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     "Each installment of taxes if paid on or before the last day of each installment period

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successively and in order is free from any interest charge."

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     "If the first installment or any succeeding installment of taxes is not paid by the last date

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of the respective installment period or periods as they occur, then the whole tax or remaining

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unpaid balance of the tax, as the case may be, immediately becomes due and payable and carries

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until collected a penalty at the rate of ____ percent (not less than six (6) nor more than eighteen

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(18) or, in the case of the city of Cranston, not more than twelve (12) per annum) installment

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shall carry until collected a penalty at the rate of no more than six percent (6%) per annum."

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     (b) Notwithstanding the provisions of subsection (a), each Each municipality shall have

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the authority, in the case of failure of a taxpayer to pay the first installment or any succeeding

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installment by the last date of the respective installment period, to require immediate payment of

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only that late installment, and to impose an interest charge only on that late installment.

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     SECTION 2. This act shall take effect upon passage.

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LC00519

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION

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     This act would provide that a municipality can only charge a penalty on a late quarterly

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tax payment, and not the whole tax or remaining unpaid balance, in an amount no greater than six

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percent (6%) per annum.

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     This act would take effect upon passage.

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LC00519

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