2014 -- S 2867

========

LC005122

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

____________

A N   A C T

RELATING TO TAXATION -- MANUFACTURING AND COMMERCIAL EXEMPTION

     Introduced By: Senator Dennis L.Algiere

     Date Introduced: April 09, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

adding thereto the following chapter:

CHAPTER 69

MANUFACTURING AND COMMERCIAL EXEMPTION ENABLING ACT

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

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

throughout the city or town in order to encourage:

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

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

town, thereby increasing the tax base;

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

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

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

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

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

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

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

parts distribution.

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

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

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

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

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

unavailable within the geographical limits of the city or town.

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

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

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

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

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

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

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

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

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

the geographical limits of the city or town.

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

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

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

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

only.

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

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

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

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

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

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

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

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

satisfaction of the local city or town building code inspector.

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

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

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

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

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

LC005122 - Page 2 of 3

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

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

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

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

to set reasonable tax exemption rates for:

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

constructing a new manufacturing or commercial facility.

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

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

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

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

services in the city or town.

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

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

     SECTION 2. This act shall take effect upon passage.

========

LC005122

========

LC005122 - Page 3 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- MANUFACTURING AND COMMERCIAL EXEMPTION

***

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

commercial property.

     This act would take effect upon passage.

========

LC005122

========

LC005122 - Page 4 of 3