2016 -- H 7520

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LC004735

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION - PROPERTY SUBJECT TO TAXATION - NARRAGANSETT

     

     Introduced By: Representatives McEntee, and Tanzi

     Date Introduced: February 10, 2016

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-3-23 of the General Laws in Chapter 44-3 entitled "Property

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

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     44-3-23. Narragansett -- Tax exemptions in the town. – (a) The town council of the

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town of Narragansett may, by ordinance, grant an income-based exemption on real property

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located within the town and owned and occupied for a period of five (5) years of residency by any

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person sixty-five (65) years of age or older at the rate of one hundred twenty-five dollars ($125)

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per one thousand dollars ($1,000) of valuation. Each exemption to all other persons granted on

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property in the town of Narragansett is at the rate of fifty-five dollars ($55.00) per one thousand

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dollars ($1,000.00) of valuation for each exemption granted to a taxpayer having an annual

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income of not more than seventy percent (70%) of the "median income" for such a household in

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Narragansett for the calendar year in which the tax bill is issued, as published annually by the

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United States Department of Housing and Urban Development.

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     (b) The town council shall establish the value of this exemption by ordinance calculated

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to limit the tax liability of eligible taxpayers to no more than four and two-tenths percent (4.2%)

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of their annual gross income; provided, however, that in no event shall the monetary value of the

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exemption exceed two thousand five hundred dollars ($2,500).

 

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     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 - NARRAGANSETT

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     This act would change the method by which Narragansett calculates its elderly tax

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exemption by adopting a needs-based and percentage of income formula.

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     This act would take effect upon passage.

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