2012 -- S 2641 SUBSTITUTE A AS AMENDED

=======

LC01861/SUB A

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Senators McCaffrey, and Lynch

     Date Introduced: March 01, 2012

     Referred To: Senate Housing & Municipal Government

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 44-5-12 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

     44-5-12. Assessment at full and fair cash value. -- (a) All real property subject to

1-4

taxation shall be assessed at its full and fair cash value, or at a uniform percentage of its value,

1-5

not to exceed one hundred percent (100%), to be determined by the assessors in each town or

1-6

city; provided, that:

1-7

      (1) Any residential property encumbered by a covenant recorded in the land records in

1-8

favor of a governmental unit or Rhode Island housing and mortgage finance corporation

1-9

restricting either or both the rents that may be charged or the incomes of the occupants shall be

1-10

assessed and taxed in accordance with section 44-5-13.11;

1-11

      (2) In assessing real estate which is classified as farm land, forest, or open space land in

1-12

accordance with chapter 27 of this title the assessors shall consider no factors in determining the

1-13

full and fair cash value of the real estate other than those which relate to that use without regard

1-14

to neighborhood land use of a more intensive nature;

1-15

      (3) Warwick. - The city council of the city of Warwick is authorized to provide, by

1-16

ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick

1-17

who makes any improvements or additions on his or her principal place of residence in the

1-18

amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the

1-19

city of Warwick, is exempt from reassessment of property taxes on the improvement or addition

1-20

until the next general citywide reevaluation of property values by the tax assessor. For the

2-1

purposes of this section, "residence" is defined as voting address. This exemption does not apply

2-2

to any commercial structure. The property owner shall supply all necessary plans to the building

2-3

official for the improvements or addition and shall pay all requisite building and other permitting

2-4

fees as now are required by law; and

2-5

      (4) Central Falls. - The city council of the city of Central Falls is authorized to provide,

2-6

by ordinance, that the owner of any dwelling of one to eight (8) units who makes any

2-7

improvements or additions to his or her residential or rental property in an amount not to exceed

2-8

twenty thousand dollars ($20,000) as determined by the tax assessor of the city of Central Falls is

2-9

exempt from reassessment of property taxes on the improvement or addition until the next general

2-10

citywide reevaluation of property values by the tax assessor. The property owner shall supply all

2-11

necessary plans to the building official for the improvements or additions and shall pay all

2-12

requisite building and other permitting fees as are now required by law.

2-13

      (5) Tangible property shall be assessed according to the asset classification table as

2-14

defined in section 44-5-12.1.

2-15

     (6) Provided however, that, for taxes levied after December 31, 2012, new construction

2-16

on development property is exempt from the assessment of taxes under this act at the full and fair

2-17

cash value of the improvements, so long as:

2-18

     (i) An owner of development property files an affidavit claiming the exemption with the

2-19

local tax collector by May 31 each year.

2-20

     The assessor shall then determine if the real property on which new construction is

2-21

located is development property. If the real property is development property, the assessor shall

2-22

exempt the new construction located on that development property from the collection of taxes at

2-23

the full and fair cash value of the improvements, until such time as the real property no longer

2-24

qualifies as development property, as defined herein.

2-25

     As used in this section:

2-26

     “Development property” shall mean real property on which a single-family residential

2-27

dwelling or residential condominium unit, is situated, which single-family residential dwelling or

2-28

residential condominium unit is not occupied, has never been occupied, and which single-family

2-29

residential dwelling or residential condominium unit is available for sale.

2-30

      (b) Municipalities shall make available to every land owner whose property is taxed

2-31

under the provisions of this section a document which may be signed before a notary public

2-32

containing language to the effect that they are aware of the additional taxes imposed by the

2-33

provisions of section 44-5-39 in the event that they use land classified as farm, forest, or open

2-34

space land for another purpose.

3-1

      (c) Pursuant to the provisions of section 44-3-29.1, all wholesale and retail inventory

3-2

subject to taxation is assessed at its full and fair cash value, or at a uniform percentage of its

3-3

value, not to exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each

3-4

town and city. Once the fiscal year 1999 value of the inventory has been assessed, this value shall

3-5

not increase. The phase-out rate schedule established in section 44-3-29.1(d) applies to this fixed

3-6

value in each year of the phase-out.

3-7

     (6) Provided, however, that no municipality shall assess a new dwelling unit at its full

3-8

and fair cash value until such time as the certificate of occupancy is issued for that dwelling.

3-9

     SECTION 2. This act shall take effect upon passage.

=======

LC01861/SUB A

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES

***

4-1

     This act would prevent a municipality from crossing assessing a new dwelling unit at its

4-2

full and fair cash value until a certificate of occupancy for the unit is issued.

4-3

     This act would take effect upon passage.

=======

LC01861/SUB A

=======