2016 -- S 2445

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LC004490

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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

     Introduced By: Senator James C. Sheehan

     Date Introduced: February 11, 2016

     Referred To: Senate Finance

     (by request)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-3-4 of the General Laws in Chapter 44-3 entitled "Property

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

     44-3-4. Veterans' exemptions. -- (a) (1) The property of each person who served in the

military or naval service of the United States in the war of the rebellion, the Spanish-American

war, the insurrection in the Philippines, the China-relief expedition, or World War I, and the

property of each person who served in the military or naval service of the United States in World

War II at any time during the period beginning December 7, 1941, and ending on December 31,

1946, and the property of each person who served in the military or naval services of the United

States in the Korean conflict at any time during the period beginning June 27, 1950, and ending

January 31, 1955, or in the Vietnam conflict at any time during the period beginning February 28,

1961, and ending May 7, 1975, or who actually served in the Grenada or Lebanon conflicts of

1983-1984, or the Persian Gulf conflict, the Haitian conflict, the Somalian conflict, and the

Bosnian conflict, at any time during the period beginning August 2, 1990, and ending May 1,

1994, or in any conflict or undeclared war for which a campaign ribbon or expeditionary medal

was earned, and who was honorably discharged from the service, or who was discharged under

conditions other than dishonorable, or who, if not discharged, served honorably, or the property

of the unmarried widow or widower of that person, is exempted from taxation to the amount of

one thousand dollars ($1,000), except in:

      (i) Burrillville , where the exemption is four thousand dollars ($4,000);

      (ii) Cumberland , where the town council may, by ordinance, provide for an exemption

of a maximum of twenty-three thousand seven hundred seventy-two dollars ($23,772);

      (iii) Cranston , where the exemption shall not exceed three thousand dollars ($3,000);

      (iv) Jamestown , where the town council may, by ordinance, provide for an exemption

not exceeding five thousand dollars ($5,000);

      (v) Lincoln , where the exemption shall not exceed ten thousand dollars ($10,000); and

where the town council may also provide for a real estate tax exemption not exceeding ten

thousand dollars ($10,000) for those honorably discharged active duty veterans who served in

Operation Desert Storm.

      (vi) Newport , where the exemption is four thousand dollars ($4,000);

      (vii) New Shoreham , where the town council may, by ordinance, provide for an

exemption of a maximum of thirty-six thousand four hundred fifty dollars ($36,450);

      (viii) North Kingstown , where the exemption is ten thousand dollars ($10,000);

      (ix) North Providence , where the town council may, by ordinance, provide for an

exemption of a maximum of five thousand dollars ($5,000);

      (x) [ As amended by P.L. 2015, ch. 168, § 1] Smithfield , where the exemption is ten

thousand dollars ($10,000);

      (x) [ As amended by P.L. 2015, ch. 179, § 1] Smithfield , where the exemption is four

thousand dollars ($4,000). Provided, effective July 1, 2016, the Smithfield town council may, by

ordinance, provide for an exemption of a maximum of ten thousand dollars ($10,000);

      (xi) Warren , where the exemption shall not exceed five thousand five hundred dollars

($5,500) on motor vehicles, or nine thousand five hundred eighty-four dollars ($9,584) on real

property.

      (xii) Westerly , where the town council may, by ordinance, provide an exemption of the

total value of the veterans' real and personal property to a maximum of forty thousand five

hundred dollars ($40,500);

      (xiii) Barrington , where the town council may, by ordinance, provide for an exemption

of six thousand dollars ($6,000) for real property;

      (xiv) Exeter , where the exemption is five thousand dollars ($5,000);

      (xv) Glocester , where the exemption shall not exceed thirty thousand dollars ($30,000).

      (xvi) West Warwick , where the exemption shall be equal to one hundred seventy dollars

($170); and

      (xvii) Warwick , where the city council may, by ordinance, provide for an exemption of

a maximum of four thousand dollars ($4,000).

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     (xviii) Narragansett, where the town council may, by ordinance, provide for an

exemption of a maximum of twenty thousand dollars ($20,000) from the assessed value of real

property, or twelve thousand dollars ($12,000) from the assessed value of a motor vehicle.

      (2) The exemption is applied to the property in the municipality where the person

resides, and if there is not sufficient property to exhaust the exemption, the person may claim the

balance in any other city or town where the person may own property; provided, that the

exemption is not allowed in favor of any person who is not a legal resident of the state, or unless

the person entitled to the exemption has presented to the assessors, on or before the last day on

which sworn statements may be filed with the assessors for the year for which exemption is

claimed, evidence that he or she is entitled, which evidence shall stand so long as his or her legal

residence remains unchanged; provided, however, that in the town of South Kingstown, the

person entitled to the exemption shall present to the assessors, at least five (5) days prior to the

certification of the tax roll, evidence that he or she is entitled to the exemption; and, provided,

further, that the exemption provided for in this subdivision to the extent that it applies in any city

or town, shall be applied in full to the total value of the person's real and tangible personal

property located in the city or town; and, provided, that there is an additional exemption from

taxation in the amount of one thousand dollars ($1,000), except in:

      (i) Central Falls , where the city council may, by ordinance, provide for an exemption of

a maximum of seven thousand five hundred dollars ($7,500);

      (ii) Cranston , where the exemption shall not exceed three thousand dollars ($3,000);

      (iii) Cumberland , where the town council may, by ordinance, provide for an exemption

of a maximum of twenty-two thousand five hundred dollars ($22,500);

      (iv) Lincoln , where the exemption shall not exceed ten thousand dollars ($10,000);

      (v) Newport , where the exemption is four thousand dollars ($4,000);

      (vi) New Shoreham , where the town council may, by ordinance, provide for an

exemption of a maximum of thirty-six thousand four hundred fifty dollars ($36,450);

      (vii) North Providence , where the town council may, by ordinance, provide for an

exemption of a maximum of five thousand dollars ($5,000);

      (viii) Smithfield , where the exemption is four thousand dollars ($4,000);

      (ix) Warren , where the exemption shall not exceed eleven thousand dollars ($11,000);

and

      (x) Barrington , where the town council may, by ordinance, provide for an exemption of

six thousand dollars ($6,000) for real property; of the property of every honorably discharged

veteran of World War I or World War II, Korean or Vietnam, Grenada or Lebanon conflicts, the

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Persian Gulf conflict, the Haitian conflict, the Somalian conflict and the Bosnian conflict at any

time during the period beginning August 2, 1990, and ending May 1, 1994, or in any conflict or

undeclared war for which a campaign ribbon or expeditionary medal was earned, who is

determined by the Veterans Administration of the United States of America to be totally disabled

through service connected disability and who presents to the assessors a certificate from the

veterans administration that the person is totally disabled, which certificate remains effectual so

long as the total disability continues.

      (3) Provided, that:

      (i) Burrillville may exempt real property of the totally disabled persons in the amount of

six thousand dollars ($6,000);

      (ii) Cumberland town council may, by ordinance, provide for an exemption of a

maximum of twenty-two thousand five hundred dollars ($22,500);

      (iii) Little Compton may, by ordinance, exempt real property of each of the totally

disabled persons in the amount of six thousand dollars ($6,000);

      (iv) Middletown may exempt the real property of each of the totally disabled persons in

the amount of five thousand dollars ($5,000);

      (v) New Shoreham town council may, by ordinance, provide for an exemption of a

maximum of thirty-six thousand four hundred fifty dollars ($36,450);

      (vi) North Providence town council may, by ordinance, provide for an exemption of a

maximum of five thousand dollars ($5,000);

      (vii) Tiverton town council may, by ordinance, exempt real property of each of the

totally disabled persons in the amount of five thousand dollars ($5,000), subject to voters'

approval at the financial town meeting;

      (viii) West Warwick town council may exempt the real property of each of the totally

disabled persons in an amount of two hundred dollars ($200); and

      (ix) Westerly town council may, by ordinance, provide for an exemption on the total

value of real and personal property to a maximum of forty-six thousand five hundred dollars

($46,500).

      (4) There is an additional exemption from taxation in the town of:

      Warren , where its town council may, by ordinance, provide for an exemption not

exceeding eight thousand two hundred fifty dollars ($8,250), of the property of every honorably

discharged veteran of World War I or World War II, or Vietnam, Grenada or Lebanon conflicts,

the Persian Gulf conflict, the Haitian conflict, the Somalian conflict and the Bosnian conflict, at

any time during the period beginning August 2, 1990, and ending May 1, 1994, or in any conflict

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or undeclared war for which a campaign ribbon or expeditionary medal was earned, who is

determined by the Veterans' Administration of the United States of America to be partially

disabled through a service connected disability and who presents to the assessors a certificate that

he is partially disabled, which certificate remains effectual so long as the partial disability

continues. Provided, however, that the Barrington town council may exempt real property of each

of the above named persons in the amount of three thousand dollars ($3,000); Warwick city

council may, by ordinance, exempt real property of each of the above-named persons and to any

person who served in any capacity in the military or naval service during the period of time of the

Persian Gulf conflict, whether or not the person served in the geographical location of the

conflict, in the amount of four thousand dollars ($4,000).

      (5) Lincoln . There is an additional exemption from taxation in the town of Lincoln for

the property of each person who actually served in the military or naval service of the United

States in the Persian Gulf conflict and who was honorably discharged from the service, or who

was discharged under conditions other than dishonorable, or who, if not discharged, served

honorably, or of the unmarried widow or widower of that person. The exemption shall be

determined by the town council in an amount not to exceed ten thousand dollars ($10,000).

      (b) In addition to the exemption provided in subsection (a) of this section, there is a ten-

thousand dollar ($10,000) exemption from local taxation on real property for any veteran and the

unmarried widow or widower of a deceased veteran of the military or naval service of the United

States who is determined, under applicable federal law by the Veterans Administration of the

United States, to be totally disabled through service-connected disability and who, by reason of

the disability, has received assistance in acquiring "specially adopted housing" under laws

administered by the veterans' administration; provided, that the real estate is occupied as his or

her domicile by the person; and, provided, that if the property is designed for occupancy by more

than one family, then only that value of so much of the house as is occupied by the person as his

or her domicile is exempted; and, provided, that satisfactory evidence of receipt of the assistance

is furnished to the assessors except in:

      (1) Cranston , where the exemption shall not exceed thirty thousand dollars ($30,000);

      (2) Cumberland , where the town council may provide for an exemption not to exceed

seven thousand five hundred dollars ($7,500);

      (3) Newport , where the exemption is ten thousand dollars ($10,000) or ten percent

(10%) of assessed valuation, whichever is greater;

      (4) New Shoreham , where the town council may, by ordinance, provide for an

exemption of a maximum of thirty-six thousand four hundred fifty dollars ($36,450);

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      (5) North Providence , where the town council may, by ordinance, provide for an

exemption not to exceed twelve thousand five hundred dollars ($12,500);

      (6) Westerly , where the town council may, by ordinance, provide for an exemption of a

maximum of forty thousand five hundred dollars ($40,500); and

      (7) Lincoln , where the town council may, by ordinance, provide for an exemption of a

maximum of fifteen thousand dollars ($15,000).

     (8) Narragansett, where the town council may, by ordinance, provide for an exemption of

a maximum of fifty thousand dollars ($50,000).

      (c) In addition to the previously provided exemptions, any veteran of the military or

naval service of the United States who is determined, under applicable federal law by the

Veterans' Administration of the United States to be totally disabled through service-connected

disability may, by ordinance, passed in the city or town where the veteran's property is assessed,

receive a ten thousand dollar ($10,000) exemption from local taxation on his or her property

whether real or personal and if the veteran owns real property may be exempt from taxation by

any fire and/or lighting district; provided, that in the town of: North Kingstown , where the

amount of the exemption shall be eleven thousand dollars ($11,000) commencing with the

December 31, 2002 assessment, and for the town of Westerly where the amount of the exemption

shall be thirty-nine thousand dollars ($39,000) commencing with the December 31, 2005

assessment, and in the town of Cumberland, where the amount of the exemption shall not exceed

forty-seven thousand five hundred forty-four dollars ($47,544), and the town of Narragansett,

where the amount of the exemption shall not exceed twenty thousand dollars ($20,000) from the

assessed value of real property or twelve thousand dollars ($12,000) from the assessed value of a

motor vehicle.

      (d) In determining whether or not a person is the widow or widower of a veteran for the

purposes of this section, the remarriage of the widow or widower shall not bar the furnishing of

the benefits of the section if the remarriage is void, has been terminated by death, or has been

annulled or dissolved by a court of competent jurisdiction.

      (e) In addition to the previously provided exemptions, there may by ordinance passed in

the city or town where the person's property is assessed, be an additional fifteen thousand dollars

($15,000) exemption from local taxation on real and personal property for any veteran of military

or naval service of the United States or the unmarried widow or widower of person who has been

or shall be classified as, or determined to be, a prisoner of war by the Veterans' Administration of

the United States, except in:

      (1) Westerly , where the town council may, by ordinance, provide for an exemption of a

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maximum of sixty-eight thousand dollars ($68,000); and

      (2) Cumberland , where the town council may by ordinance provide for an exemption of

a maximum of forty-seven thousand five hundred forty-four dollars ($47,544).

     (3) Narragansett, where the town council may, by ordinance, provide for an exemption of

a maximum of forty thousand dollars ($40,000).

      (f) Cities and towns granting exemptions under this section shall use the eligibility dates

specified in this section.

      (g) The several cities and towns not previously authorized to provide an exemption for

those veterans who actually served in the Persian Gulf conflict may provide that exemption in the

amount authorized in this section for veterans of other recognized conflicts.

      (h) Bristol , where the town council of Bristol may, by ordinance, provide for an

exemption for any veteran and the unmarried widow or widower of a deceased veteran of military

or naval service of the United States who is determined, under applicable federal law by the

Veterans' Administration of the United States to be partially disabled through service connected

disability.

      (i) In addition to the previously provided exemption, any veteran who is discharged from

the military or naval service of the United States under conditions other than dishonorable, or an

officer who is honorably separated from military or naval service, who is determined, under

applicable federal law by the Veterans Administration of the United States to be totally and

permanently disabled through a service-connected disability, who owns a specially adapted

homestead that has been acquired or modified with the assistance of a special adaptive housing

grant from the Veteran's Administration and that meets Veteran's Administration and Americans

with disability act guidelines from adaptive housing or that has been acquired or modified using

proceeds from the sale of any previous homestead that was acquired with the assistance of a

special adaptive housing grant from the veteran's administration, the person or the person's

surviving spouse is exempt from all taxation on the homestead. Provided, that in the town of

Westerly where the amount of the above referenced exemption shall be forty-six thousand five

hundred dollars ($46,500).

      (j) The town of Coventry may provide by ordinance a one thousand dollars ($1,000)

exemption for any person who is an active member of the armed forces of the United States.

     SECTION 2. Section 44-3-5 of the General Laws in Chapter 44-3 entitled "Property

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

     44-3-5. Gold star parents' exemption. -- (a) The property of every person whose son or

daughter has served with the armed forces of the United States of America and has lost his or her

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life as a result of his or her service with the armed forces of the United States of America,

providing the death was determined to be in the line of duty, shall be exempted from taxation to

the amount of three thousand dollars ($3,000) in accordance with similar provisions of § 44-3-4

applying to honorably discharged veterans of the armed forces; provided, that there shall be but

one exemption granted where both parents of the deceased son or daughter are living; provided:

      (1) Cranston. - The city of Cranston may provide, by ordinance, an exemption from

taxation not to exceed forty-five hundred dollars ($4,500);

      (2) Warren. - The town of Warren may provide, by ordinance, an exemption from

taxation not to exceed nine thousand two hundred fifteen dollars ($9,215);

      (3) Cumberland. - The town of Cumberland may provide, by ordinance, an exemption

not to exceed twenty-three thousand seven hundred seventy-two dollars ($23,772) for persons

receiving a gold star exemption;

      (4) North Providence. - The town of North Providence may provide, by ordinance, an

exemption not to exceed five thousand dollars ($5,000) for persons receiving a gold star

exemption;

      (5) Smithfield. - The town of Smithfield may provide, by ordinance, an exemption not to

exceed six thousand dollars ($6,000) for persons receiving a gold star exemption;

      (6) Westerly. - The town of Westerly may provide, by ordinance, an exemption on the

total value of real and personal property not to exceed forty-six thousand five hundred dollars

($46,500);

      (7) Barrington. - The town of Barrington may provide, by ordinance, an exemption not to

exceed six thousand dollars ($6,000) for real property for persons receiving a gold star

exemption;

      (8) Jamestown. - The town of Jamestown may provide, by ordinance, an exemption on

the total value of real and personal property not to exceed five thousand dollars ($5,000); and

      (9) Lincoln. - The town of Lincoln may provide, by ordinance, an exemption not to

exceed five thousand dollars ($5,000) for persons receiving a gold star exemption.

      (10) West Warwick. - The town of West Warwick may provide by ordinance, an

exemption not to exceed two hundred twenty-five dollars ($225) for person receiving a gold star

exemption.

      (b) The adjustment shall be made to reflect the same monetary savings that appeared on

the property tax bill that existed for the year prior to reevaluation of the real property. If any

provision of this section is held invalid, the remainder of this section and the application of its

provisions shall not be affected by that invalidity.

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     (11) Narragansett. – The town of Narragansett may provide, by ordinance, an exemption

not to exceed twenty thousand dollars ($20,000) from the assessed value of real property, or

twelve thousand dollars ($12,000) from the assessed value of a motor vehicle, for persons

receiving a gold star exemption.

     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 - PROPERTY SUBJECT TO TAXATION

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     This act would allow for property tax and motor vehicle tax exemptions for various

classes of war veterans, their spouses, and gold star parents in the town of Narragansett.

     This act would take effect upon passage.

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