2016 -- H 8300

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LC006120

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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 -- TAXATION OF LOW-INCOME HOUSING

     Introduced By: Representatives Morin, Carson, Phillips, and Casey

     Date Introduced: June 08, 2016

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-5-13.11 of the General Laws in Chapter 44-5 entitled "Levy and

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

     44-5-13.11. Qualifying low-income housing -- Assessment and taxation. – (a) Any

residential property that has been issued an occupancy permit on or after January 1, 1995, after

substantial rehabilitation as defined by the U.S. Department of Housing and Urban Development

and is encumbered by a covenant recorded in the land records in favor of a governmental unit or

Rhode Island housing and mortgage finance corporation restricting either or both the rents that

may be charged to tenants of the property or the incomes of the occupants of the property, is

subject to a tax that equals eight percent (8%) of the property's previous years' gross scheduled

rental income or a lesser percentage as determined by each municipality.

     (b) Any municipality that has achieved the goal of having in excess of ten percent (10%)

of the year-round housing units reported in the census, as set forth in §45-53-3, may adopt an

ordinance that would exempt said municipality from being required to accept any additional

residential properties that are otherwise eligible for the alternative assessment and taxation

provided for in this section.

     SECTION 2. This act shall take effect upon passage.

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LC006120

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- TAXATION OF LOW-INCOME HOUSING

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     This act would enable a municipality to adopt an ordinance that would exempt that

municipality from being required to accept any additional residential properties, otherwise

eligible for alternative assessment and taxation, if the municipality has achieved the goal of

having in excess of ten (10%) percent of its housing stock as low and affordable housing.

     This act would take effect upon passage.

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LC006120

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