2015 -- S 0707

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LC001772

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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: Senators Sosnowski, Archambault, and Conley

     Date Introduced: March 18, 2015

     Referred To: Senate Finance

     (Administration)

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 3.1

RENEWABLE ENERGY SYSTEMS PROPERTY TAXATION

     44-3.1-1. Purpose. -- The purpose of this chapter is to facilitate and provide a predictable

process for how commercial and residential renewable energy systems are assessed and taxed.

The goal of this chapter is to provide predictability to homeowners, businesses, municipalities

and renewable energy developers on property valuation tax rates and revenues for renewable

energy systems. This process shall enhance and improve the state's renewable energy economy

and reduce the costs of renewable energy.

     44-3.1-2. Definitions. -- When used in this chapter, the following terms shall have the

following meanings:

     (1) "Division" means the Rhode Island division of municipal finance;

     (2) "Office" means the Rhode Island office of energy resources; and

     (3) "Renewable energy system" means renewable energy systems using eligible

renewable energy resources as defined § 39-26-5.

     44-3.1-3. Renewable energy systems - Exemption. -- The city or town councils of the

various cities and towns may, by ordinance, exempt from taxation any renewable energy system

located in the city or town.

     44-3.1-4. Renewable energy systems property taxation. -- Effective July 1, 2015, the

office shall annually establish in consultation with the division an appropriate methodology as to

both the valuation and taxation of commercial and residential renewable energy systems. In

establishing the tax rates for the renewable energy systems, the office shall convene a stakeholder

group comprised of members with expertise in municipal property taxes and renewable energy

technologies and system installations. The office, in consultation with the division, shall release

the residential and commercial renewable energy system property tax rates for public comment,

which shall be subject to the rulemaking provisions of chapter 35 of title 42, including, but not

limited to, § 42-35-3(a)(1) which provides for at least thirty (30) days public notice prior to the

intended action. The rulemaking process shall be completed prior to the residential and

commercial renewable energy property tax rates being adopted by the division on or before

January 1, 2016 and annually thereafter. Further, any stakeholder meetings shall be posted in

accordance with the provisions of § 42-46-6.

     SECTION 2. Section 44-3-21 of the General Laws in Chapter 44-3 entitled "Property

Subject to Taxation" is hereby repealed.

     44-3-21. Renewable energy systems -- Exemption. -- The city or town councils of the

various cities and towns may, by ordinance, exempt from taxation any renewable energy system

located in the city or town.

     SECTION 3. 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 methodologies to assess and tax commercial and residential

renewable energy systems.

     This act would take effect upon passage.

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LC001772

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