2013 -- S 0828

=======

LC02315

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO "AN ACT RELATING TO TAX EXEMPTION OF CERTAIN PROPERTY IN

THE TOWN OF RICHMOND"

     Introduced By: Senator Catherine Cool Rumsey

     Date Introduced: April 04, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 1 of Chapter 112 of the Public Laws of 2005, January session,

1-2

entitled "An Act Relating to Tax Exemption of Certain Property in the Town of Richmond", is

1-3

hereby amended to read as follows:

1-4

     Section 1. (A) In order to encourage, maintain, and preserve a sustainable supply of

1-5

owner-occupied housing that is affordable to low and moderate income older people and totally

1-6

disabled people, the town council of Richmond may, by ordinance, grant to every person who is a

1-7

citizen and resident of the town, and who is sixty-five (65) or more years of age, or is less than

1-8

sixty-five (65) years of age and totally disabled, and is residing in the town in a dwelling house or

1-9

mobile home that has been owned by him or her for one year before the date of the assessment

1-10

has been a resident of Richmond for three (3) years and has owned a home in Richmond for three

1-11

(3) years before the year for which the exemption is claimed, on proper claim being made

1-12

therefor, a tax exemption proportionate to total gross household income.

1-13

     (B) An ordinance enacted pursuant to this act shall provide a schedule of tax exemptions

1-14

of sixty percent (60%) or less, for total gross household incomes of $9,346 or more. The town

1-15

council shall have the authority to adjust the schedule annually, by amendment to said ordinance,

1-16

to accommodate changing economic conditions, including, but not limited to, changes in the

1-17

national cost of living index.

1-18

     (C) The word "income" as used herein means the aggregate income of the property owner

1-19

and all persons living with him or her in the household, from whatever source derived, including,

2-1

but not limited to, realized capital gains, gifts, and, in their entirety, pensions, annuities,

2-2

retirement benefits, and social security benefits. Income shall be based on the calendar year

2-3

preceding the year for which the exemption is claimed total funds received from any source by

2-4

the property owner and all other persons living in the household during the calendar year

2-5

preceding the year for which the exemption is claimed. The funds may be taxable or nontaxable

2-6

and may be from any source, including, but not limited to, wages, salary, and tips; business

2-7

income; farm income; dividends, interest, and realized capital gains; pensions, annuities, and

2-8

retirement benefits; social security benefits; disability benefits; unemployment benefits,

2-9

temporary disability insurance benefits or workers' compensation benefits; estate or trust income;

2-10

cash public assistance payments; alimony and child support; monetary gifts; and military income

2-11

and cash benefits.

2-12

     (D) The word "resident" as used herein means a person whose legal domicile is in

2-13

Richmond. A legal domicile is the permanent home to which, upon temporary absence, a person

2-14

intends to return. A person can have more than one residence but only one legal domicile. A

2-15

temporary or seasonal residence is not a legal domicile.

2-16

     (E) The words "totally disabled" as used herein mean a person has been determined by

2-17

the social security administration to be one hundred percent (100%) disabled and is eligible for

2-18

disability benefits under the federal social security act.

2-19

     (D)(F) The ordinance shall provide that the exemption shall be available only to owner-

2-20

occupants. Only one exemption shall be granted for each residential property, even if more than

2-21

one eligible person is an owner who resides there.

2-22

     (E)(G) The ordinance shall provide that the exemption is available annually, upon timely

2-23

application, to persons who have reached their sixth-fifth (65th) birthday by December 31 of the

2-24

calendar year preceding the year for which the exemption is claimed or to persons who are totally

2-25

disabled, and that the tax assessor shall be authorized to require whatever documentation he or

2-26

she deems reasonably necessary to verify eligibility. Applications shall be made on or before

2-27

April 15 of each year for which the exemption is claimed.

2-28

     (F)(H) The ordinance shall provide that no income-bearing property, business property,

2-29

or combination business and residential property shall be entitled to the exemption; provided,

2-30

however, that the owner of a two-household dwelling who is otherwise entitled to an exemption

2-31

shall receive an exemption in proportion to the area occupied by the owner, and the rental income

2-32

from the second dwelling unit shall not be considered income for eligibility purposes. The

2-33

exemption shall apply to any owner-occupied dwelling unit, including, but not limited to, single-

2-34

family houses, condominium apartments and cooperative apartments. If the dwelling unit

3-1

occupies only part of a building, the exemption shall be in proportion to the area devoted to the

3-2

owner's dwelling unit. Professional persons who conduct their profession from their residence

3-3

shall not be entitled to an exemption.

3-4

     (G)(I) The ordinance shall provide that property shall not be eligible for a tax exemption

3-5

if it has been conveyed to the applicant solely for the purpose of evading taxation. If a property

3-6

owner is determined to have received a tax exemption through fraudulent transfer of the property

3-7

or through false or misleading statements on a tax exemption application form, the assessor shall

3-8

have the authority to record a lien on the property in the land evidence records for the amount of

3-9

tax that should have been paid to the town.

3-10

     (J) The ordinance shall provide that each exemption shall become effective upon the tax

3-11

assessor's certification of the tax roll for the tax year for which the exemption is claimed, and

3-12

shall apply to the tax for that year. If the property owner becomes ineligible for the exemption

3-13

after certification of the tax roll and before the taxes for the year are paid in full, the tax assessor

3-14

shall have the authority to adjust the amount of the tax due on the property and issue a prorated

3-15

bill.

3-16

     (H)(K) Nothing contained herein or in an ordinance enacted pursuant to the authority

3-17

herein shall abrogate the authority conferred on the tax assessor by Rhode Island general laws

3-18

section 44-3-3(16).

3-19

     SECTION 2. The question of acceptance or rejection of this act shall be submitted to the

3-20

qualified electors of Richmond who are entitled to vote upon a proposition to impose a tax or

3-21

expend money, at any annual or special financial town meeting during 2013. Said vote shall be

3-22

taken by standing vote or by paper ballot. Acceptance of this act shall be by majority vote. Any

3-23

action taken in the year 2013 at an annual or special financial town meeting shall be as valid as if

3-24

this act were in effect at the time the warrant for said town meeting was published and at the time

3-25

said annual or special financial town meeting took place, and any ordinance enacted pursuant to

3-26

this act shall apply to any application for exemption filed during 2013. After said financial town

3-27

meeting, the town clerk shall forthwith certify to the secretary of state the result of the vote.

3-28

     SECTION 3. This section and Section 2 of this act shall take effect upon passage, and the

3-29

remaining section shall take effect upon approval by the qualified electors of Richmond.

=======

LC02315

=======