2015 -- S 0238

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LC000149

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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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Senators Walaska, Felag, and McCaffrey

     Date Introduced: February 11, 2015

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 44-5-11.5 and 44-5-11.6 of the General Laws in Chapter 44-5

entitled "Levy and Assessment of Local Taxes" are hereby amended to read as follows:

     44-5-11.5. Legislative findings -- Revaluation cycle. -- It is found and declared that:

      (1) Rhode Island property taxes continue to play a significant role in the financing of

local educational and municipal services. The general assembly recognizes that the way the

property tax is assessed, levied and collected can be improved to provide more reliable and up-to-

date property values in each of the cities and towns.

      (2) The state's ten (10) year property revaluation cycle is the longest revaluation cycle in

the country. Infrequent revaluations translate into disparities in property tax burden between types

and classes of property within and among cities and towns. In addition, because each city and

town represents multiple systems and procedures for administering the property tax, there is an

inconsistent administration of property tax law and regulations.

      (3) It is the intent of the general assembly to ensure that all taxpayers in Rhode Island are

treated equitably. The more frequent the revaluation, the greater the equity within and among

jurisdictions. Ensuring that taxpayers are treated fairly begins with modernizing the

administration of the property tax that ensures:

      (i) Up-to-date property values are maintained through more frequent property

revaluations;

      (ii) Cities and towns meet defined standards related to performing updates of property

values;

      (iii) The state shares in the cost of performing updates of property values in the cities and

towns;

      (iv) A meaningful and effective method of ensuring that cities and towns comply with

the nine (9) ten (10) year revaluation cycle and the updates of property values are developed;

      (v) Procedures for administering the property tax are standardized -- such as general

reporting and classification systems;

      (vi) Assessors and contracted property revaluation companies meet appropriate

qualifications and standards; and

      (vii) Intergovernmental cooperation in the administration of the property tax is

maximized.

      (4) With these findings in mind, it is the intent of the general assembly to institute a

revaluation cycle where every city or town conducts a revaluation within nine (9) ten (10) years

of the date of the prior revaluation and shall conduct an update of real property every three (3)

five (5) years from the date of the last revaluation.

     44-5-11.6. Assessment of valuations -- Apportionment of levies. -- (a) Notwithstanding

the provisions of § 44-5-11 [repealed] beginning on December 31, 2000, the assessors in the

several towns and cities shall conduct an update as defined in this section or shall assess all

valuations and apportion the levy of all taxes legally ordered under the rules and regulations, not

repugnant to law, as the town meetings and city councils, respectively, shall, from time to time,

prescribe; provided, that the update or valuation is performed in accordance with the following

schedules:

     (1)(i) For a transition period, for cities and towns that conducted or implemented a

revaluation as of 1993 or in years later:

Update Revaluation

Lincoln 2000 2003

South Kingstown 2000 2003

Smithfield 2000 2003

West Warwick 2000 2003

Johnston 2000 2003

Burrillville 2000 2003

North Smithfield 2000 2003

Central Falls 2000 2003

North Kingstown 2000 2003

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Jamestown 2000 2003

North Providence 2001 2004

Cumberland 2001 2004

Bristol 2004 2001

Charlestown 2001 2004

East Greenwich 2002 2005

Cranston 2002 2005

Barrington 2002 2005

Warwick 2003 2006

Warren 2003 2006

East Providence 2003 2006

      (ii) Provided that the reevaluation period for the town of New Shoreham shall be

extended to 2003 and the update for the town of Hopkinton may be extended to 2007 with no

additional reimbursements by the state relating to the delay.

     (iii) The implementation date for this schedule is December 31 st, of the stated year.

     (iv) Those cities and towns not listed in this schedule shall continue the revaluation

schedule pursuant to § 44-5-11 [repealed].

     (2)(i) For the post transition period and in years thereafter:

      Update #1 Update #2 Revaluation

     Woonsocket 2002 2005 2008

     Pawtucket 2002 2005 2008

     Portsmouth 2001 2004 2007

     Coventry 2001 2004 2007

     Providence 2003 2006 2009

     Foster 2002 2005 2008

     Middletown 2002 2005 2008

     Little Compton 2003 2006 2009

     Scituate 2003 2006 2009

     Westerly 2003 2006 2009

     West Greenwich 2004 2007 2010

     Glocester 2004 2007 2010

     Richmond 2004 2007 2010

     Bristol 2004 2007 2010

     Tiverton 2005 2008 2011

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     Newport 2005 2008 2011

     New Shoreham 2006 2009 2012

     Narragansett 2005 2008 2011

     Exeter 2005 2008 2011

     Hopkinton 2007 2010 2013

     Lincoln 2006 2009 2012

     South Kingstown 2006 2009 2012

     Smithfield 2006 2009 2012

     West Warwick 2006 2009 2012

     Johnston 2006 2009 2012

     Burrillville 2006 2009 2012

     North Smithfield 2006 2009 2012

     Central Falls 2006 2009 2012

     North Kingstown 2006 2009 2012

     Jamestown 2006 2009 2012

     North Providence 2007 2010 2013

     Cumberland 2007 2010 2013

     Charlestown 2007 2010 2013

     East Greenwich 2008 2011 2014

     Cranston 2008 2011 2014

     Barrington 2008 2010 2014

     Warwick 2009 2012 2015

     Warren 2009 2012 2016

     East Providence 2009 2012 2015

      (ii) The implementation date for the schedule is December 31st of the stated year. Upon

the completion of the update and revaluation according to this schedule, each city and town shall

conduct a revaluation within nine (9) ten (10) years of the date of the prior revaluation and shall

conduct an update of real property every three (3) five (5) years from the last revaluation.

Provided, that for the town of Bristol, the time for the first statistical update following the 2010

revaluation shall be extended from 2013 to 2014 and said statistical update shall be based on

valuations as of December 31, 2014. Provided, however, the five (5) year update of real property

shall not commence prior to the completion of all previously scheduled revaluations as set forth

in subsection (a)(2)(i) of this section.

     (b) No later than February 1, 1998, the director of the department of revenue shall

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promulgate rules and regulations consistent with the provisions of this section to define the

requirements for the updates that shall include, but not be limited to:

     (1) An analysis of sales;

     (2) A rebuilding of land value tables;

     (3) A rebuilding of cost tables of all improvement items; and

     (4) A rebuilding of depreciation schedules. - Upon completion of an update, each city or

town shall provide for a hearing and/or appeal process for any aggrieved person to address any

issue that arose during the update.

     (c) The costs incurred by the towns and cities for the first update shall be borne by the

state in an amount not to exceed twenty dollars ($20.00) per parcel. The costs incurred by the

towns and cities for the second update shall be borne eighty percent (80%) by the state (in an

amount not to exceed sixteen dollars ($16.00) per parcel) and twenty percent (20%) by the town

or city, and in the third update and thereafter, the state shall pay sixty percent (60%) of the update

(not to exceed twelve dollars ($12.00) per parcel) and the town or city shall pay forty percent

(40%); provided, that for the second update and in all updates thereafter, that the costs incurred

by any city or town that is determined to be a distressed community pursuant to § 45-13-12 shall

be borne eighty percent (80%) by the state and twenty percent (20%) by the city or town for all

updates required by this section.

     (d) The office of municipal affairs, after consultation with the League of Cities and

Towns and the Rhode Island Assessors' Association, shall recommend adjustments to the costs

formula described in subsection (c) of this section based upon existing market conditions.

     (e) Any property that is either exempt from the local property tax pursuant to § 44-3-3 or

pays a city or town an amount in lieu of taxes is not required to have its values updated pursuant

to this section and the property is not eligible for the reimbursement provisions of subsection (c)

of this section. However, those properties that are exempt from taxation and are eligible for state

appropriations in lieu of property tax under the provisions of § 45-13-5.1 are eligible for state

reimbursement pursuant to subsection (c) of this section, provided, that these properties were

revalued as part of that city or town's most recent property revaluation.

     (f) No city or town is required to conduct an update pursuant to this section unless the

state has appropriated sufficient funds to cover the state's costs as identified in subsection (c) of

this section.

     (g) Any city or town that fails to conduct an update or revaluation as required by this

section, or requests and receives an extension of the dates specified in this section, shall receive

the same amount of state aid under §§ 45-13-1, 45-13-5.1, and 45-13-12 in the budget year for

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which the new values were to apply as the city or town received in-state aid in the previous

budget year; provided, however, if the new year's entitlement is lower than the prior year's

entitlement, the lower amount applies, except for the town of New Shoreham for the fiscal year

2003.

     (h) Any bill or resolution to extend the dates for a city or town to conduct an update or

revaluation must be approved by a two-thirds (2/3) majority of both houses of the general

assembly.

     (i) The department of revenue shall annually publish a ten (10) year schedule of the

updates and revaluations required of each city and town in order to assist municipalities in

complying with the requirements of this section.

     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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

***

     This act would increase from three (3) to five (5) years the interval of time within which

a city or town must conduct an update of its last real property revaluation. The five (5) year

update of real property would not commence prior to the completion of all previously scheduled

revaluations. It would also increase the time interval between revaluations from nine (9) years to

ten (10) years and would require the department of revenue to publish annually, a ten (10) year

schedule of updates and revaluations to assist the cities and towns with compliance of these

requirements.

     This act would take effect upon passage.

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