2013 -- S 0322

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Senator Michael J. McCaffrey

     Date Introduced: February 13, 2013

     Referred To: Senate Housing & Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-5-12 of the General Laws in Chapter 44-5 entitled "Levy and

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Assessment of Local Taxes" is hereby amended to read as follows:

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

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

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

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city; provided, that:

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

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

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

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

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

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

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

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to neighborhood land use of a more intensive nature;

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

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

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

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

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

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

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

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

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

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fees as now are required by law; and

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

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

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

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

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

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

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

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

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

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defined in section 44-5-12.1.

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     (6) Provided, however, that, for taxes levied after December 31, 2013, new construction

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

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fair cash value of the improvements, as long as an owner of development property files an

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affidavit claiming the exemption with the local tax collector by May 31 each year.

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

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

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

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

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qualifies as development property, as defined herein.

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     (ii) As used in this subdivision, "Development property" means real property on which a

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single-family residential dwelling or residential condominium unit is situated, and said single-

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family residential dwelling or residential condominium unit is not occupied, has never been

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occupied, and is on the market for sale.

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

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

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

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

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space land for another purpose.

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

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

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

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

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

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value in each year of the phase-out.

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     SECTION 2. 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 - LEVY AND ASSESSMENT OF LOCAL TAXES

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     This act would prevent a municipality from taxing a new single-family dwelling unit or

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residential condominium unit at its full and fair cash value for as long as said new dwelling or

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condominium unit is not occupied, has never been occupied, and is on the market for sale.

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     This act would take effect upon passage.

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