2012 -- H 7434

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LC00237

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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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Representative Brian C. Newberry

     Date Introduced: February 08, 2012

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

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Taxes" is hereby amended by adding thereto the following section:

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     44-5-2.3. North Smithfield - Maximum Levy. -- (a) Findings. The general assembly

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makes the following findings of fact:

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     (1) The master plan for a large 600,000+ square foot retail development known as

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"Dowling Village" (now comprising lots numbered 406 through 412, both inclusive, and lots 414,

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415, 416, 418 and 419 on Plat 13, lots 401, 402, 404, 405 and 417 on Plat 21 and lot 50 on Plat

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21A in the records of the tax assessor of the town of North Smithfield, hereafter for the purposes

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of this section called "the Town") was approved by the planning board of the town on July 1,

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2004;

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     (2) It was anticipated that the Dowling Village project would add an aggregate of

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approximately one million dollars ($1,000,000) per year to the property tax revenues collected by

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the town;

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     (3) The town was at the time reviewing certain proposals for school construction needed

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by the town, including a proposal to plan, design and construct a new middle school;

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     (4) Financing the proposed new middle school required the town to issue a thirty million

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dollar ($30,000,000) bond;

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     (5) In deciding whether to go forward with planning for the proposed new middle school,

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and in deciding to ask the town's residents to approve the proposed new middle school and the

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significant additional expense to be incurred in the construction of same, the then serving town

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council of the town determined to designate the approximately one million dollars ($1,000,000)

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in additional aggregate property tax revenues to be derived from the Dowling Village project

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when it was completed as an offset to the costs of repaying the above referenced thirty million

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dollar ($30,000,000) bond;

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     (6) In reliance upon the availability of said repayment source, the town's residents

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approved issuance of the bond in a special election on April 11, 2006;

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     (7) Due to no fault of either the town or the developer, the Dowling Village project was

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significantly delayed due to litigation brought against the town and the Dowling Village

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developer, and then further delayed such that major construction was only started in 2010;

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     (8) The result of such delays in construction and the subsequent amendment of Rhode

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Island general laws section 44-5-2 has deprived the town of the repayment source it anticipated

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when the new middle school project was planned and approved by the voters.

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     (b) Notwithstanding any other provisions of this chapter, any tax increment generated

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from the "Dowling Village" development as the same is described in subsection (a)(1) hereof in

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the town's fiscal year 2011 and thereafter up to and including the town's fiscal year 2031 which is

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designated for current and/or future debt service with respect to said middle school in accordance

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with the rules and regulations of the state department of revenue shall be excluded from the

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maximum tax the town may levy pursuant to the provisions of section 44-5-2 of the general laws.

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     SECTION 2. This act shall take effect upon passage.

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LC00237

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

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     This act would exempt the tax revenues to be received by the town of North Smithfield

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from the "Dowling Village" development, so-called, from the cap provided for in Rhode Island

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general law section 44-5-2.

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     This act would take effect upon passage.

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LC00237

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