2012 -- H 7183

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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 - WEST GREENWICH

     Introduced By: Representatives Tomasso, and Watson

     Date Introduced: January 18, 2012

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is

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hereby amended by adding thereto the following section:

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     44-3-9.8. West Greenwich - Exemption or stabilization of tax on qualified property

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used for manufacturing or commercial purposes in the town of West Greenwich. -- (a)

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Except as provided in this section, the town council of the town of West Greenwich may vote to

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authorize, for a period not exceeding ten (10) years, and subject to the conditions provided in this

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section, to exempt from payment, in whole or part, real and personal property used for

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manufacturing or commercial purposes, or to determine a stabilized amount of taxes to be paid on

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account of the property, notwithstanding the valuation of the property or the rate of tax; provided,

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that after public hearings, at least ten (10) days' notice of which shall be given in a newspaper of

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general circulation in the town, the town council determines that:

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      (1) Granting of the exemption or stabilization of taxes will inure to the benefit of the

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town by reason of:

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      (i) The willingness of the manufacturing or commercial concern to locate in the town; or

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      (ii) The willingness of a manufacturing firm to expand facilities with an increase in

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employment or the willingness of a commercial or manufacturing concern to retain or expand its

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facility in the town and not reduce its work force in the town; or

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      (iii) An improvement of the physical plant of the town that will result in long-term

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economic benefits to the town and the state.

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      (2) Granting of the exemption or stabilization of taxes will inure to the benefit of the

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town by reason of the willingness of a manufacturing or commercial firm or concern to replace,

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reconstruct, expand or remodel existing buildings, facilities, fixtures, machinery, or equipment

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with modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase in,

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plant or commercial building investments by the firm or concern in the town.

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      (b) Should the town council make the determination in paragraphs (a)(1)(i) -- paragraphs

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(a)(1)(iii), or subdivision (a)(2) of this section, an exemption or stabilization may be granted for

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existing buildings, property, machinery, or facilities owned by businesses already located in the

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town of West Greenwich on January 1, 2011.

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      (c) For the purposes of this section, "real property used for manufacturing or commercial

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purposes" includes any building or structure used for offices or commercial enterprises including

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without limitation any building or structure used for wholesale, warehouse, distribution, and/or

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storage business, used for service industries, or used for any other commercial business and the

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land on which the building or structure is situated and not used for residential purposes.

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      (d) For purposes of this section, "personal property used for manufacturing or

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commercial purposes" means any personal property owned by a firm or concern occupying a

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building, structure, and/or land used for commercial purposes and used by such firm or concern in

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its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery,

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stock in trade, and inventory.

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      (e) Except as provided in this section, property for which taxes have been exempted in

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whole or in part, or stabilized pursuant to this section, shall not, during the period for which taxes

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have been exempted or stabilized, be further liable to taxation by the town so long as the property

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is used for the manufacturing or commercial purposes for which the exemption or stabilization

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was granted.

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      (f) Notwithstanding any vote of, or findings by the town council, the property shall be

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assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of

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paying the indebtedness of the town and the indebtedness of the state or any political subdivision

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of the state, to the appropriation to any sinking fund of the town, which portion of the tax shall be

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paid in full, and the taxes so assessed and collected shall be kept in a separate account and used

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only for that purpose.

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      (g) Any application for tax exemption or stabilization submitted pursuant to this section

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shall be submitted before an application for development plan review is submitted to the West

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Greenwich planning board, as applicable, or for other such permits and/or approvals that may be

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required from any other town board or commission.

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      (h) Any tax exemption or stabilization granted by the town council pursuant to this

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section shall be applicable for a period beginning on the first day of the fiscal year in which the

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exemption or stabilization is granted.

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      (i) If a property owner whose property tax has been exempted or stabilized pursuant to

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this section becomes delinquent in the payment of its property taxes, or transfers ownership of its

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business, the town council shall have the authority to review and terminate the tax exemption or

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stabilization agreement.

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     SECTION 2. If any provision of this act, or the application thereof to the town of West

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Greenwich or to any person or circumstances, is deemed invalid for any reason, the remainder of

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this act, or the application of such provision to said town or other persons or circumstances, shall

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not be affected thereby and, to this end, the provisions of this act are declared to be severable.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - WEST GREENWICH

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     This act would permit the West Greenwich town council to exempt or stabilize taxes on

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qualified property used for manufacturing or commercial purposes in the town of West

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Greenwich.

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     This act would take effect upon passage.

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