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2012 -- S 2451 | |
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LC01459 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO TAXATION - LEVY ASSESSMENT OF LOCAL TAXES | |
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Introduced By: Senators Tassoni, Cote, and P Fogarty | |
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Date Introduced: February 16, 2012 | |
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Referred To: Senate Finance | |
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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 expenses 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 2012 and thereafter up to and including the town’s fiscal year 2032 which |
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is designated for current and/or future debt service with respect to said middle school in |
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accordance with the rules and regulations of the state department of revenue shall be excluded |
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from the maximum tax the town may levy pursuant to the provisions of section 44-5-2 of the |
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general laws. |
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SECTION 2. This act shall take effect upon passage. |
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LC01459 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO TAXATION - LEVY 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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LC01459 | |
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