2014 -- H 7699

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LC004638

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO TAXATION -- MANUFACTURING AND COMMERCIAL EXEMPTION

     

     Introduced By: Representatives Azzinaro, Corvese, Walsh, O`Grady, and Edwards

     Date Introduced: February 27, 2014

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

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adding thereto the following chapter:

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CHAPTER 69

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MANUFACTURING AND COMMERCIAL EXEMPTION ENABLING ACT

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     44-69-1. Purpose. -- The purpose of this chapter is to enable all cities and towns to

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develop a consistent plan for property tax exemptions for industrial and commercial development

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throughout the city or town in order to encourage:

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     (1) An industrial or commercial concern to locate in the city or town;

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     (2) An existing industrial or commercial concern to improve its facilities in the city or

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town, thereby increasing the tax base;

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     (3) An existing industrial or commercial concern to construct additional facilities in the

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city or town thereby increasing the tax base and increasing work opportunities.

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     44-69-2. Types of eligible property described. – (a) Industrial and commercial property

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is defined as buildings, accessory structures and similar improvements to real estate the primary

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purpose of which is the manufacture of goods and the providing of commercial services.

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     (b) Industrial property shall include facilities related to the manufacture of goods

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including, but not limited to, office, engineering, research and development, and warehousing or

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parts distribution.

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     (c) Commercial property shall include facilities relating to commercial operation and may

 

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include retail and professional services; such retail and professional services, in order to qualify,

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must comply with the primary eligibility requirements as hereinafter set forth and shall make a

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satisfactory showing to the fact finding authority that it will increase the work base, improve the

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quality of life in the city or town and provide goods and/or services which were theretofore

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unavailable within the geographical limits of the city or town.

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     (d) Mixed use commercial property to shall include facilities relating to commercial

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operation and may include retail and professional services, and residential housing units located

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within the same structure, with the residential housing units located above the first floor (not on

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the first floor), and in accordance with applicable local zoning and building code requirements.

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Any residential component of a mixed-use development must be rental only units, and not for sale

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or resale. In order to qualify, the application must comply with the primary eligibility

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requirements as hereinafter set forth and shall make satisfactory showing to the fact finding

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authority that it will increase the work base, opportunities for housing, improve the quality of life

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in the community and provide goods and/or services which were theretofore unavailable within

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the geographical limits of the city or town.

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     44-69-3. Application procedure. – (a) No person shall be entitled to any exemption

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without first filing an application with the office of tax assessor of the respective city or town.

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     (b) No application shall be considered unless application is filed prior to the issuance of a

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building permit with respect to the property. This applies to new construction and renovation

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only.

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     (c) No application shall be considered unless estimated cost of new construction exceeds

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twenty percent (20%) of the assessed value of the industrial or commercial property or one

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hundred thousand dollars ($100,000), whichever is less.

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     (d) The city or town building code inspector shall review the application to determine any

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violations of the provisions of the city or town building code with respect to the property of the

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applicant and any other property in the city or town owned by the applicant. If violations do exist,

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the local city or town building code inspector shall forward a statement stating the nature and

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extent of the violations. No exemption shall be granted until such have been corrected to the

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satisfaction of the local city or town building code inspector.

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     (e) The city or town tax collector/assessor shall review the town tax records to determine

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whether all taxes (together with interest and penalties) on the subject property and all other

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property in the city or town owned by the applicant have been paid. If a deficiency or deficiencies

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do exist, the tax collector/assessor shall forward a statement of the amounts due and properties

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involved. No exemption shall be effective unless and until any and all taxes, together with interest

 

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and penalties remaining unpaid and due and owing the city or town, have been paid in full.

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     44-69-4. Exemptions enabled. – The tax assessors of the various cities or towns are

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hereby enabled and authorized to promulgate rules and regulations, using whatever table and/or

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chart which is necessary to illustrate the rate schedule so as to provide a uniform plan, necessary

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to set reasonable tax exemption rates for:

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     (1) Manufacturing or commercial enterprise's which are new to the city or town, and

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constructing a new manufacturing or commercial facility.

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     (2) Manufacturing or commercial enterprises which are existing city or town but

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constructing an additional manufacturing, research, technological development, and/or financial

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services facility on land which did not have an improvement on it prior to such construction.

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     (3) Industrial or commercial property providing manufacturing and/or commercial

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services in the city or town.

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     44-69-5. Broad application. – Any exemption provided by this chapter is to be applied

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in addition to and not in conflict with any tax exemption authorized by chapter 44-3.

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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 -- MANUFACTURING AND COMMERCIAL EXEMPTION

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     This act would permit the cities or towns to establish tax exemptions for industrial and

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commercial property.

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     This act would take effect upon passage.

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