2015 -- H 5173

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LC000608

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION

     Introduced By: Representatives Shekarchi, Edwards, Solomon, Casey, and Trillo

     Date Introduced: January 21, 2015

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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

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

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

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

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

city; provided, that:

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

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

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

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

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

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

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

to neighborhood land use of a more intensive nature;

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

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

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

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

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

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

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

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

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

fees as now are required by law; and

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

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

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

twenty-five thousand dollars ($25,000) as determined by the tax assessor of the city of Central

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

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

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

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

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

defined in § 44-5-12.1.

     (6)(i) For taxes levied after December 31, 2014, new construction on development

property is exempt from the assessment of taxes under this chapter at the full and fair cash value

of the improvements, provided that:

     (A) An owner of development property files an affidavit claiming the exemption with the

local tax assessor by December 31 each year; and

     (B) The assessor shall determine whether the real property on which new construction is

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

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

improvements, until such time as the real property no longer qualifies as development property.

     (ii) For purposes of this section, "development property" means commercial real estate

which shall be defined as any real estate other than: (A) Real estate containing one to four (4)

residential units; (B) Real estate on which no buildings or structures are located and which is

zoned for single-family residential use; or (C) Single-family residential units such as

condominiums, townhouses, or homes singly or in a subdivision when sold, leased or otherwise

conveyed on a unit by unit basis, even though these units may be part of a larger building or

parcel of real estate containing more than four (4) residential units.

     (iii) Property described in § 44-5-12(a)(6)(ii) shall continue to be taxed at the assessed

value at the time of purchase until such time as such property is sold or occupied and no longer

qualifies as development property. As to condominiums, this exemption shall not affect taxes on

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the common areas and facilities as set forth in § 34-36-27. In no circumstance shall such

designation as development property extend beyond two (2) tax years and a qualification as a

development property shall only apply to property which applies for or receives a construction

permit after July 1, 2015. Further, the exemptions set forth in this section shall not apply to land.

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

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

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

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

land for another purpose.

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

taxation is assessed at its full and fair cash value, or at a uniform percentage of its value, not to

exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each town and city.

Once the fiscal year 1999 value of the inventory has been assessed, this value shall not increase.

The phase-out rate schedule established in § 44-3-29.1(d) applies to this fixed value in each year

of the phase-out.

     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

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     This act would establish an exemption from taxation on improvements for new

construction on commercial development property.

     This act would take effect upon passage.

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