2015 -- S 0616

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LC002061

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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 -- PROPERTY SUBJECT TO TAXATION --TIVERTON

ELDERLY EXEMPTION

     Introduced By: Senators Felag, Ottiano, and DiPalma

     Date Introduced: March 05, 2015

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-3-16 of the General Laws in Chapter 44-3 entitled "Property

Subject to Taxation" is hereby amended to read as follows:

     44-3-16. Elderly -- Freeze of tax rate and valuation. -- (a) The city or town councils of

the various cities and towns except the towns of West Warwick, Exeter, Coventry and Bristol

may provide, by ordinance, for the freezing of the rate and valuation of taxes on real property

located therein to any person who is sixty-five (65) years or older or to any person who is totally

and permanently disabled regardless of age and who does not have income from all sources in

excess of four thousand dollars ($4,000) per year, or in the case of the town of Johnston to any

person who is sixty-five (65) years or older or to any person who is totally and permanently

disabled regardless of age and who does not have income from all sources in excess of six

thousand dollars ($6,000) per year, and a total income of seventy-two hundred dollars ($7,200)

for two (2) or more persons living in that dwelling, or in the case of the city of Cranston to any

person who is sixty-five (65) years or older or to any person who is totally and permanently

disabled regardless of age and who does not have income from all sources in excess of twenty

thousand dollars ($20,000) per year, or a lesser figure as determined by the city council of the city

of Cranston and a total income of twenty-three thousand dollars ($23,000), or a lesser figure as

determined by the city council of the city of Cranston, for two (2) or more persons living in that

dwelling; provided, that the freeze of rate and valuation on real property applies only to owner

occupied single or two (2) family dwellings in which the person resides; and provided, further,

that the exemption is not allowed unless the person entitled to it has presented to the assessors, on

or before the last day on which sworn statements may be filed with the assessors for the year for

which the tax freeze is claimed, or for taxes assessed December 31, 2009, the deadline is April

15, 2010, evidence that he or she is entitled, which evidence shall stand as long as his or her legal

residence remains unchanged. The exemptions shall be in addition to any other exemption

provided by law, and provided, further, that the real estate is not taken from the tax rolls and is

subject to the bonded indebtedness of the city or town.

      (b) (1) The town council of the town of West Warwick may provide, by ordinance, for a

schedule of exemptions from the assessed valuation on real property located there for any person

who is sixty-five (65) years or older or to any person who is totally and permanently disabled

regardless of age, which exemption schedule is based upon gross annual income from all sources

as follows:

      (i) An exemption of three hundred seventy-five dollars ($375) for those having a gross

annual income from all sources of $0 to $15,000;

      (ii) An exemption of two hundred eighty dollars ($280) for those having a gross annual

income from all sources of $15,001 to $20,000;

      (iii) An exemption of two hundred thirty-five dollars ($235) for those having a gross

annual income from all sources of $20,001 to $25,000;

      (iv) An exemption of one hundred ninety dollars ($190) for those having a gross annual

income from all sources of $25,001 to $30,000;

      (v) An exemption of one hundred dollars ($100) for those having a gross annual income

from all sources of $30,001 to $35,000.

      (2) Provided, that the exemption schedule applies only to single family dwellings in

which the person resides; provided, further, that the person acquired the property for actual

consideration paid or inherited the property; provided, further, that the person has resided in the

town of West Warwick for a period of three (3) years ending with the date of assessment for the

year for which exemption is claimed; and provided, further, that the exemption is not allowed

unless the person entitled to it has presented to the assessors, on or before the last day on which

sworn statements may be filed with the tax assessor for the year for which the exemption is

claimed, evidence that he or she is entitled, which evidence shall stand as long as his or her

residence remains unchanged. In the case of married persons, the age requirement will be met as

soon as either the husband or wife reaches the age of sixty-five (65) years and in the event the

husband passes away, a widow sixty-two (62) years of age to sixty-five (65) years of age is

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allowed the exemption as long as she remains unmarried.

      (3) Those persons granted tax relief under chapter 255 of the Public Laws of 1972 have

the option of retaining their current tax freeze or abandoning it to seek relief under this

subsection.

      (c) The town council of the town of Coventry may, by ordinance, exempt from taxation

the real property and/or mobile homes situated in the town which is owned and occupied as the

principal residence, by any one or more persons sixty-five (65) years of age or over or by one

who is totally and permanently disabled, regardless of age, domiciled in the town of Coventry,

upon terms and conditions that may be established by the town council in the ordinance. The

exemption is for taxes assessed December 31, 1975, and subsequent years. Any ordinance

adopted by the town council pursuant to the provisions of this subsection and subsections (d) and

(e) may be amended at any time and from time to time by the town council or any successor town

council.

      (d) The town council of the town of Coventry may, by ordinance, exempt from taxation

the real property situated in the town, owned and occupied by any person, who is a veteran as

defined in § 44-3-4, totally and permanently disabled or over the age of sixty-five (65) years,

which exemption is in an amount not exceeding nine thousand dollars ($9,000) of valuation,

retroactive to real property assessed on December 31, 1978, and which exemption is in addition

to any and all other exemptions from taxation to which the person may be entitled. The

exemption is applied uniformly, and without regard to ability to pay, provided, that only one

exemption is granted to co-tenants, joint tenants, and tenants by the entirety, even though all of

the co-tenants, joint tenants, and tenants by the entirety are veterans, totally and permanently

disabled, or sixty-five (65) years of age or over. The exemption applies to a life tenant who has

the obligation for the payment of the tax on the real property.

      (e) The town council of the town of Coventry is authorized in the ordinance or

ordinances to provide that any person who obtains an exemption pursuant to the ordinance to

which the person is not entitled by the filing or making of any false statement or the proffering of

any document or other writing known by the person to have been altered, forged, or to contain

any false or untrue information is liable to the town of Coventry for an amount equal to double

the amount of reduction in taxes resulting from the exemption, which amount is recoverable by

the town in a civil action.

      (f) The town council of the town of Exeter may provide, by ordinance, for the freezing of

the rate and valuation of taxes on real property located in the town to any qualified person who is

sixty-five (65) years or older regardless of income, or to any person who is totally and

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permanently disabled regardless of age, and income, provided, that the freeze of rate and

valuation on real property applies only to single family dwellings in which the person resides; and

provided, further, that the person acquired the property for actual consideration paid or inherited

the property; and provided that the qualified person has presented to the assessors, on or before

the last day on which sworn statements may be filed with the assessors for the year for which the

exemption is claimed, evidence that he or she is entitled, which evidence shall stand as long as his

or her legal residence remains unchanged. The stabilization of resulting tax assessments shall be

subject to reasonable definitions, terms and conditions as may otherwise be prescribed by

ordinance. The exemption is in addition to any other exemption provided by law, and provided,

further, that the real estate is not taken from the tax rolls and is subject to the bonded

indebtedness of the town.

      (g) (1) (i) The town council of the town of Bristol may provide, by ordinance, for the

freezing of the rate and valuation of taxes on real property located there to any person who is

sixty-five (65) years or older, or if not sixty-five (65) or older, the taxpayer's spouse who is

domiciled with him or her, is sixty-five (65) or older; who is fifty (50) years or older and who is

the widow or widower of a taxpayer who, prior to death, had qualified for, and was entitled to

relief under this subsection and who was domiciled with the decedent taxpayer on the date of

death or to any person who is totally and permanently disabled regardless of age. The taxpayer

shall reside in the town of Bristol for one year prior to filing the claim for relief.

      (ii) To qualify for relief, the taxpayer shall have "adjusted gross income", as the term is

defined for federal income tax purposes, for the preceding calendar year of less than ten thousand

dollars ($10,000).

      (2) The tax is calculated by fixing the tax at the tax rate as levied on the real property

during the year in which the taxpayer became age sixty-four (64) or totally and permanently

disabled regardless of age. The rate remains regardless of the taxpayer's age, date of application,

or date of qualification.

      (3) The taxpayer shall apply annually for tax relief on a form prepared by the tax

assessor. The application shall be filed between January 1 and May 15 for any year in which

benefits are claimed. The taxpayer shall file any supplemental information necessary to satisfy the

claim. Upon approval, the tax relief shall take effect in the next forthcoming tax roll.

      (4) The owner of the property or a tenant for life or for a term of years who meets the

qualifications previously enumerated is entitled to pay the tax levied on the property for the first

year in which the claim for tax relief is filed and approved. For each subsequent year the taxpayer

shall meet the qualifications hereafter enumerated, the taxpayer shall be entitled to continue to

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pay the tax or the lesser amount as is levied.

      (h) The town council of the town of Tiverton may, by ordinance, exempt from taxation

provide for a tax credit on the real property and/or mobile homes situated in the town which is

owned and occupied as the principal residence by any one or more persons sixty-five (65) years

of age or over by one who is totally and permanently disabled, regardless of age, domiciled in the

town of Tiverton, upon terms and conditions as may be established by the town council in the

ordinance.

      (i) (1) The town of Tiverton may provide, by ordinance, for a schedule of exemptions

from the assessed valuation on real property located there tax credits for any person who is sixty-

five (65) years or older, which exemption tax credit schedule is based upon annual adjusted gross

income as defined for federal income tax purposes. as follows:

      (i) An exemption not to exceed fifty thousand dollars ($50,000) for those having an

adjusted gross income of zero (0) to fifteen thousand dollars ($15,000);

      (ii) An exemption not to exceed thirty-five thousand dollars ($35,000) for those having

an annual adjusted income of fifteen thousand one dollars ($15,001) to eighteen thousand dollars

($18,000);

      (iii) An exemption not to exceed twenty-five thousand dollars ($25,000) for those having

an annual adjusted income of eighteen thousand one dollars ($18,001) to twenty-two thousand

dollars ($22,000);

      (iv) An exemption not to exceed twenty thousand dollars ($20,000) for those having an

annual adjusted income of twenty-two thousand one dollars ($22,001) to thirty thousand dollars

($30,000).

      (2) Provided, that the exemption tax credit schedule applies only to single family

dwellings in which the person resides; provided, further, that the person acquired the property for

actual consideration paid or inherited the property; provided, further, that the person has resided

in the town of Tiverton for a period of three (3) years ending with the date of assessment for the

year for which exemption the tax credit is claimed; and provided, further, that the exemption tax

credit is not allowed unless the person entitled to it has presented to the assessors, on or before

the last day on which sworn statements may be filed with the tax assessor for the year for which

the exemption tax credit is claimed, due evidence that he or she is so entitled, which evidence

shall stand as long as his or her residence remains unchanged.

      (3) In the case of married persons, the age requirement will be met as soon as either the

husband or wife reaches the age of sixty-five (65) years, and in the event the husband a spouse

passes away, a widow(er) sixty-two (62) years of age to sixty-five (65) years of age is allowed the

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exemption tax credit as long as she remains unmarried.

      (j) The city council of the city of Warwick may provide, by ordinance, for the freezing of

the tax rate and valuation of real property for persons seventy (70) years of age or older who

reside in owner occupied single-family homes where the income from all sources does not exceed

seven thousand five hundred dollars ($7,500) for a single person and does not exceed fifteen

thousand dollars ($15,000) for married couples. Persons seeking relief shall apply for an

exemption to the tax assessor no later than March 15 of each year.

      (k) The town council of the town of East Greenwich may provide, by ordinance, and

upon such terms and conditions as it deems reasonable, for the freezing of both the tax rate

attributable to education and the valuation of taxes on real property located in the town of any

person who is sixty-five (65) years or older or of any person who is totally and permanently

disabled regardless of age; provided, that the freeze of rate and valuation on real property applies

only to single or two (2) family dwellings in which the person resides; and provided, further, that

the person acquired the property for actual consideration paid or inherited the property; and

provided, further, that the exemption is not allowed unless the person entitled to it has presented

to the tax assessor, on or before the last day on which sworn statements may be filed with the

assessor for the year for which the exemption is claimed, evidence that he or she is entitled,

which evidence shall stand as long as his or her legal residence remains unchanged. The

exemption is in addition to any other exemption provided by law; and provided, further, that the

real estate is not taken from the tax rolls and is subject to the bonded indebtedness of the town.

     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 -- PROPERTY SUBJECT TO TAXATION --TIVERTON

ELDERLY EXEMPTION

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     This act would amend the town of Tiverton's elderly low income tax exemption in order

to provide a tax credit instead of an exemption, to taxpayers in the town of Tiverton sixty-five

(65) years of age or older. The act would also repeal the tax exemption schedule and instead

would allow the Tiverton town council to establish its own schedule of tax credits for citizens

sixty-five (65) years of age or older.

     This act would take effect upon passage.

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