2015 -- S 0952

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LC002764

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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 Ruggerio, Goodwin, Miller, Ciccone, and Jabour

     Date Introduced: May 28, 2015

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-64.14-14 of the General Laws in Chapter 42-64.14 entitled "The

I-195 Redevelopment Act of 2011" is hereby repealed.

     42-64.14-14. Payments. -- The commission shall make as a condition to the sale or lease

of any parcel of I-195 surplus land, as defined in § 37-5-8, or any portion thereof, to any not-for-

profit, organization or entity that is otherwise exempt from municipal real estate taxes including,

without limitation, any independent public instrumentality, governmental or quasi governmental

agency, body, division, or official, or any affiliate or subsidiary thereof, that the purchaser or

lessee, as applicable, shall make payments to the city relating to any parcel of I-195 surplus land

to be purchased or leased by such not-for-profit, or tax exempt organization or institution. If no

such agreement has been reached with the city of Providence, the commission is authorized to

complete the sale; however, in consideration for the purchase or lease of any parcel of the I-195

surplus land, the not-for-profit or tax-exempt organization or institution shall make payments to

the city of Providence equivalent to those that would be paid by a taxable institution with regard

to the subject parcel including, but not limited to, any improvements constructed thereon by the

purchaser or lessee; provided, however, that the obligation to make such payments shall cease in

the event all or any portion of or any improvement on the subject parcel(s) is subject to any tax by

the city of Providence, whether in the nature of a real estate tax, ad valorem tax, user fee, or

otherwise (regardless of the basis on which such tax or fee is calculated) or any other obligation

that has the effect of such tax.

     SECTION 2. Chapter 42-64.14 of the General Laws entitled "The I-195 Redevelopment

Act of 2011" is hereby amended by adding thereto the following section:

     42-64.14-14.1. Providence - I-195 Redevelopment District - Tax rates. –

Notwithstanding any provision of the general or public laws to the contrary or any ordinance

adopted by the city of Providence, the property tax rate applicable to real property owned by a

for-profit organization or entity and located in the I-195 redevelopment district as set forth in §§

37-5-8 and 42-64.14-5, shall be assessed and stabilized in accordance with § 44-5-85.

     SECTION 3. Section 44-5-11.8 of the General Laws in Chapter 44-5 entitled "Levy and

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

     44-5-11.8. Tax classification. -- (a) Upon the completion of any comprehensive

revaluation or any update, in accordance with § 44-5-11.6, any city or town may adopt a tax

classification plan, by ordinance, with the following limitations:

      (1) The designated classes of property shall be limited to the classes as defined in

subsection (b) of this section.

      (2) The effective tax rate applicable to any class, excluding class 4, shall not exceed by

fifty percent (50%) the rate applicable to any other class, except in the city of Providence, and the

town of Glocester; however, in the year following a revaluation or statistical revaluation or

update, the city or town council of any municipality may, by ordinance, adopt tax rates for the

property class for all ratable tangible personal property no greater than twice the rate applicable to

any other class provided that the municipality documents to, and receives written approval from,

the office of municipal affairs that the rate difference is necessary to ensure that the estimated tax

levy on the property class for all ratable tangible personal property is not reduced from the prior

year as a result of the revaluation or statistical revaluation.

      (3) Any tax rate changes from one year to the next shall be applied such that the same

percentage rate change is applicable to all classes, excluding class 4, except in the city of

Providence and the town of Glocester.

      (4) Notwithstanding subdivisions (2) and (3) of this subsection, the tax rates applicable

to wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are

governed by § 44-3-29.1.

      (5) The tax rates applicable to motor vehicles within Class 4 as defined in subsection (b)

of this section are governed by § 44-34.1-1.

      (6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure

applies to the reporting of and compliance with these classification restrictions.

      (b) Classes of Property.

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      (1) Class 1: Residential real estate consisting of no more than five (5) dwelling units,

land classified as open space, and dwellings on leased land including mobile homes. In the city of

Providence, this class may also include residential properties containing partial commercial or

business uses and residential real estate of more than five (5) dwelling units.

      (i) A homestead exemption provision is also authorized within this class; provided

however, that the actual effective rate applicable to property qualifying for this exemption shall

be construed as the standard rate for this class against which the maximum rate applicable to

another class shall be determined, except in the town of Glocester.

      (ii) In lieu of a homestead exemption, any city or town may divide this class into non-

owner and owner occupied property, and adopt separate tax rates in compliance with the within

tax rate restrictions.

      (2) Class 2: Commercial and industrial real estate, residential properties containing

partial commercial or business uses, and residential real estate of more than five (5) dwelling

units. In the city of Providence, properties containing partial commercial or business uses and

residential real estate of more than five (5) dwelling units may be included in Class 1.

      (3) Class 3: All ratable, tangible personal property.

      (4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of

this title.

      (c) The city council of the city of Providence and the town council of the town of

Glocester may, by ordinance, provide for, and adopt, a tax rate on various classes as they shall

deem appropriate; provided, however, that notwithstanding the provisions of subsections (a), (b)

and (c) of this section, the property tax rate applicable to real property owned by a for-profit

organization or entity and located in the I-195 redevelopment district as set forth in §§ 37-5-8 and

42-64.14-5, shall be assessed in accordance with § 44-5-85. Provided, further, that the tax rate for

Class 2 shall not be more than two (2) times the tax rate of Class 1; the tax rate applicable to

Class 3 shall not exceed the tax rate of Class 1 by more than two hundred percent (200%).

Glocester shall be able to establish homestead exemptions up to fifty percent (50%) of value and

the calculation provided in subsection (b)(1)(i) shall not be used in setting the differential tax

rates.

      (d) Notwithstanding the provisions of subsection (a) of this section, the town council of

the town of Middletown may hereafter, by ordinance, adopt a tax classification plan in

accordance with the provisions of subsections (a) and (b) of this section, to be applicable to taxes

assessed on or after the assessment date of December 31, 2002.

      (e) Notwithstanding the provisions of subsection (a) of this section, the town council of

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the town of Little Compton may hereafter, by ordinance, adopt a tax classification plan in

accordance with the provisions of subsections (a) and (b) of this section and the provisions of §

44-5-79, to be applicable to taxes assessed on or after the assessment date of December 31, 2004.

      (f) Notwithstanding the provisions of subsection (a) of this section, the town council of

the town of Scituate may hereafter, by ordinance, change its tax assessment from fifty percent

(50%) of value to one hundred percent (100%) of value on residential and

commercial/industrial/mixed-use property, while tangible property is assessed at one hundred

percent (100%) of cost, less depreciation; provided, however, the tax rate for Class 3 (tangible)

property shall not exceed the tax rate for Class 1 (residential) property by more than two hundred

thirteen percent (213%). This provision shall apply whether or not the fiscal year is also a

revaluation year.

     SECTION 4. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

Taxes" is hereby amended by adding thereto the following section:

     44-5-85. Providence - I-195 Redevelopment District - Tax rates. – (a) Notwithstanding

any provision of the general or public laws to the contrary or any ordinance adopted by the city of

Providence, the property tax rate applicable to real property owned by a for-profit organization or

entity and located in the I-195 redevelopment district as set forth in §§ 37-5-8 and 42-64.14-5,

shall be assessed in accordance with the following tax exemption schedule:

     Year(s) Percent Exempt From Tax

     1-4 100

     5 90

     6 85

     7 80

     8 75

     9 70

     10 65

     11 60

     12 55

     13 50

     14 45

     15 40

     16 35

     17 25

     18 20

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     19 10

     20 and thereafter 0

     (b) Except as provided in this section, real property, the payment of taxes on which has

been so exempted, shall not be liable to further taxation by the city so long as that real property is

used or intended to be used for the purposes established pursuant to chapter 64.14 of title 42 (The

I-195 Redevelopment Act of 2011).

     SECTION 5. 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 a tax assessment schedule for land located within the I-195

Redevelopment District.

     This act would take effect upon passage.

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LC002764

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