S0826

	2013 -- S 0826
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	LC02159
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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: Senators Miller, Goodwin, Ruggerio, Goldin, and Jabour

	Date Introduced: April 04, 2013

	Referred To: Senate Finance




	It is enacted by the General Assembly as follows:

1-1	SECTION 1. Section 44-5-11.8 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	44-5-11.8. Tax classification. -- (a) Upon the completion of any comprehensive
1-4	revaluation or any update, in accordance with § 44-5-11.6, any city or town may adopt a tax
1-5	classification plan, by ordinance, with the following limitations:
1-6	(1) The designated classes of property shall be limited to the ~~four~~ classes as defined in
1-7	subsection (b) of this section.
1-8	(2) The effective tax rate applicable to any class excluding class 4 shall not exceed by
1-9	fifty percent (50%) the rate applicable to any other class, except in the city of Providence, and
1-10	the town of Glocester; however, in the year following a revaluation or statistical revaluation or
1-11	update, the city or town council of any municipality may, by ordinance, adopt tax rates for the
1-12	property class for all ratable tangible personal property no greater than twice the rate applicable to
1-13	any other class provided that the municipality documents to, and receives written approval from
1-14	the office of municipal affairs that the rate difference is necessary to ensure that the estimated tax
1-15	levy on the property class for all ratable tangible personal property is not reduced from the prior
1-16	year as a result of the revaluation or statistical revaluation.
1-17	(3) Any tax rate changes from one year to the next shall be applied such that the same
1-18	percentage rate change is applicable to all classes, excluding class 4, except in the city of
1-19	Providence, and the town of Glocester.
2-20	(4) Notwithstanding subdivisions (2) and (3) of this subsection, the tax rates applicable to
2-21	wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are
2-22	governed by § 44-3-29.1.
2-23	(5) The tax rates applicable to motor vehicles within Class 4 as defined in subsection (b)
2-24	of this section are governed by § 44-34.1-1.
2-25	(6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure
2-26	applies to the reporting of and compliance with these classification restrictions.
2-27	(b) Classes of Property.
2-28	(1) (i) Class 1: Residential real estate consisting of no more than five (5) dwelling units,
2-29	land classified as open space, and dwellings on leased land including mobile homes. In the city of
2-30	Providence, this class may also include residential properties containing partial commercial or
2-31	business uses and residential real estate of more than five (5) dwelling units. A homestead
2-32	exemption provision is also authorized within this class, provided however, that the actual
2-33	effective rate applicable to property qualifying for this exemption shall be construed as the
2-34	standard rate for this class against which the maximum rate applicable to another class shall be
2-35	determined, except in the city of Providence, and the town of Glocester. Any city or town may
2-36	divide this class into non-owner and owner occupied property and adopt separate tax rates in
2-37	compliance with the within tax rate restrictions.
2-38	(2) Class 2: Commercial and industrial real estate, residential properties containing partial
2-39	commercial or business uses and residential real estate of more than five (5) dwelling units. In the
2-40	city of Providence, properties containing partial commercial or business uses and residential real
2-41	estate of more than five (5) dwelling units may be included in Class 1.
2-42	(3) Class 3: All ratable tangible personal property.
2-43	(4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of
2-44	this title.
2-45	(c) The city council of the city of Providence, and the town council of the town of
2-46	Glocester may by ordinance provide for and adopt a tax rate on various classes as it shall deem
2-47	appropriate. Providence and Glocester shall be able to establish homestead exemptions up to fifty
2-48	percent (50%) of value. The calculation provided in subsection (b)(1)(i) shall not be used in
2-49	setting the differential tax rates. The tax rate for Class 2 shall not be more than two times the tax
2-50	rate of Class 1; the tax rate applicable to Class 3 shall not exceed the tax rate of Class 1 by more
2-51	than two hundred percent (200%).
2-52	(d) Notwithstanding the provisions of subsection (a) of this section the town council of
2-53	the town of Middletown may hereafter, by ordinance, adopt a tax classification plan in
2-54	accordance with the provisions of subsections (a) and (b) of this section, to be applicable to taxes
3-1	assessed on or after the assessment date of December 31, 2002.
3-2	(e) Notwithstanding the provisions of subsection (a) of this section, the town council of
3-3	the town of Little Compton may hereafter, by ordinance, adopt a tax classification plan in
3-4	accordance with the provisions of subsections (a) and (b) of this section and the provisions of §
3-5	44-5-79, to be applicable to taxes assessed on or after the assessment date of December 31, 2004.
3-6	SECTION 2. This act shall take effect upon passage.

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	LC02159
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	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 provide that for Class 1 residential real estate property, any city or town
4-2	could divide that class into non-owner and owner occupied property and adopt separate tax rates
4-3	that would be in compliance with the applicable tax rate restrictions.
4-4	This act would take effect upon passage.

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	LC02159
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S0826