|
2012 -- H 7397 | |
|
======= | |
|
LC00934 | |
|
======= | |
|
STATE OF RHODE ISLAND | |
|
| |
|
IN GENERAL ASSEMBLY | |
|
| |
|
JANUARY SESSION, A.D. 2012 | |
|
| |
|
____________ | |
|
| |
|
A N A C T | |
|
RELATING TO TAXATION - MAXIMUM LEVY - FIRE DISTRICTS | |
|
|
|
|
|
|
|
Introduced By: Representatives Nunes, Tomasso, and Marcello | |
|
Date Introduced: February 02, 2012 | |
|
Referred To: House Municipal Government | |
|
It is enacted by the General Assembly as follows: | |
|
1-1 |
SECTION 1. Section 44-5-2 of the General Laws in Chapter 44-5 entitled "Levy and |
|
1-2 |
Assessment of Local Taxes" is hereby amended to read as follows: |
|
1-3 |
44-5-2. Maximum levy. -- (a) Through and including its fiscal year 2007, a city or town |
|
1-4 |
may levy a tax in an amount not more than five and one-half percent (5.5%) in excess of the |
|
1-5 |
amount levied and certified by that city or town for the prior year. Through and including its |
|
1-6 |
fiscal year 2007, but in no fiscal year thereafter, the amount levied by a city or town is deemed to |
|
1-7 |
be consistent with the five and one-half percent (5.5%) levy growth cap if the tax rate is not more |
|
1-8 |
than one hundred and five and one-half percent (105.5%) of the prior year's tax rate and the |
|
1-9 |
budget resolution or ordinance, as applicable, specifies that the tax rate is not increasing by more |
|
1-10 |
than five and one-half percent (5.5%) except as specified in subsection (c) of this section. In all |
|
1-11 |
years when a revaluation or update is not being implemented, a tax rate is deemed to be one |
|
1-12 |
hundred five and one-half percent (105.5%) or less of the prior year's tax rate if the tax on a |
|
1-13 |
parcel of real property, the value of which is unchanged for purpose of taxation, is no more than |
|
1-14 |
one hundred five and one-half percent (105.5%) of the prior year's tax on the same parcel of real |
|
1-15 |
property. In any year through and including fiscal year 2007 when a revaluation or update is |
|
1-16 |
being implemented, the tax rate is deemed to be one hundred five and one-half percent (105.5%) |
|
1-17 |
of the prior year's tax rate as certified by the division of property valuation and municipal finance |
|
1-18 |
in the department of revenue. |
|
1-19 |
(b) In its fiscal year 2008, a city or town may levy a tax in an amount not more than five |
|
1-20 |
and one-quarter percent (5.25%) in excess of the total amount levied and certified by that city or |
|
2-1 |
town for its fiscal year 2007. In its fiscal year 2009, a city or town may levy a tax in an amount |
|
2-2 |
not more than five percent (5%) in excess of the total amount levied and certified by that city or |
|
2-3 |
town for its fiscal year 2008. In its fiscal year 2010, a city or town may levy a tax in an amount |
|
2-4 |
not more than four and three-quarters percent (4.75%) in excess of the total amount levied and |
|
2-5 |
certified by that city or town in its fiscal year 2009. In its fiscal year 2011, a city or town may |
|
2-6 |
levy a tax in an amount not more than four and one-half percent (4.5%) in excess of the total |
|
2-7 |
amount levied and certified by that city or town in its fiscal year 2010. In its fiscal year 2012, a |
|
2-8 |
city, |
|
2-9 |
percent (4.25%) in excess of the total amount levied and certified by that city, |
|
2-10 |
district in its fiscal year 2011. In its fiscal year 2013 and in each fiscal year thereafter, a city, |
|
2-11 |
town or fire district may levy a tax in an amount not more than four percent (4%) in excess of the |
|
2-12 |
total amount levied and certified by that city, |
|
2-13 |
(c) The division of property valuation in the department of revenue shall monitor city, |
|
2-14 |
town or fire district compliance with this levy cap, issue periodic reports to the general assembly |
|
2-15 |
on compliance, and make recommendations on the continuation or modification of the levy cap |
|
2-16 |
on or before December 31, 1987, December 31, 1990, and December 31, every third year |
|
2-17 |
thereafter. The chief elected official in each city and town and the tax collector or treasurer of |
|
2-18 |
each fire district shall provide to the division of property and municipal finance within thirty (30) |
|
2-19 |
days of final action, in the form required, the adopted tax levy and rate and other pertinent |
|
2-20 |
information. |
|
2-21 |
(d) The amount levied by a city, |
|
2-22 |
increase as specified in subsection (a) or (b) of this section if the city, |
|
2-23 |
qualifies under one or more of the following provisions: |
|
2-24 |
(1) The city, |
|
2-25 |
tax revenues and the loss is certified by the department of revenue. |
|
2-26 |
(2) The city, |
|
2-27 |
which causes or will cause the levy to exceed the percentage increase as specified in subsection |
|
2-28 |
(a) or (b) of this section. In the event of an emergency or an anticipated emergency, the city or |
|
2-29 |
town shall notify the auditor general who shall certify the existence or anticipated existence of the |
|
2-30 |
emergency. Without limiting the generality of the foregoing, an emergency shall be deemed to |
|
2-31 |
exist when the city, |
|
2-32 |
retirement contributions or utility expenditures which exceed the prior fiscal year's health |
|
2-33 |
insurance costs, retirement contributions or utility expenditures by a percentage greater than three |
|
2-34 |
(3) times the percentage increase as specified in subsection (a) or (b) of this section. |
|
3-1 |
(3) A city, |
|
3-2 |
which exceed the prior year's debt service expenditures by an amount greater than the percentage |
|
3-3 |
increase as specified in subsection (a) or (b) of this section and which are the result of bonded |
|
3-4 |
debt issued in a manner consistent with general law or a special act. In the event of the debt |
|
3-5 |
service increase, the city, |
|
3-6 |
shall certify the debt service increase above the percentage increase as specified in subsection (a) |
|
3-7 |
or (b) of this section the prior year's debt service. No action approving or disapproving exceeding |
|
3-8 |
a levy cap under the provisions of this section affects the requirement to pay obligations as |
|
3-9 |
described in subsection (d) of this section. |
|
3-10 |
(4) The city, |
|
3-11 |
result of major new construction which necessitates either significant infrastructure or school |
|
3-12 |
housing expenditures by the city, |
|
3-13 |
essential municipal services and such increase in expenditures or demand for services is certified |
|
3-14 |
by the department of revenue. |
|
3-15 |
(e) Any levy pursuant to subsection (d) of this section in excess of the percentage |
|
3-16 |
increase specified in subsection (a) or (b) of this section shall be approved by the affirmative vote |
|
3-17 |
of at least four-fifths (4/5) of the full membership of the governing body of the city or town or in |
|
3-18 |
the case of a city or town having a financial town meeting, or a fire district having an annual |
|
3-19 |
meeting, the majority of the electors present and voting at the town financial meeting or annual |
|
3-20 |
meeting shall also approve the excess levy. |
|
3-21 |
(f) Nothing contained in this section constrains the payment of present or future |
|
3-22 |
obligations as prescribed by section 45-12-1, and all taxable property in each city, |
|
3-23 |
district is subject to taxation without limitation as to rate or amount to pay general obligation |
|
3-24 |
bonds or notes of the city, |
|
3-25 |
or charter. |
|
3-26 |
SECTION 2. This act shall take effect upon passage. |
|
| |
|
======= | |
|
LC00934 | |
|
======== | |
|
EXPLANATION | |
|
BY THE LEGISLATIVE COUNCIL | |
|
OF | |
|
A N A C T | |
|
RELATING TO TAXATION - MAXIMUM LEVY - FIRE DISTRICTS | |
|
*** | |
|
4-1 |
This act would provide that fire districts are subject to the maximum tax levy and |
|
4-2 |
assessment of local taxes. |
|
4-3 |
This act would take effect upon passage. |
|
| |
|
======= | |
|
LC00934 | |
|
======= |