2016 -- S 2034

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LC003168

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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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

     

     Introduced By: Senator Roger Picard

     Date Introduced: January 13, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

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     44-5-13.11. Qualifying low-income housing -- Assessment and taxation. -- Any

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

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

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

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

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

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

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rental income or a lesser percentage as determined by each municipality; provided, that where

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twelve percent (12%) or more of the residential units within a municipality qualify for low-

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income housing, the tax that may be charged is ten percent (10%) of the property's current year's

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

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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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

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     This act would permit a municipality, in which twelve percent (12%) of the housing in a

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municipality qualifies for low-income housing, to charge a tax up to ten percent (10%) of the

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current year's gross scheduled rental income.

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     This act would take effect upon passage.

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