2017 -- H 5388

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO TAXATION -- TAXATION OF LOW-INCOME HOUSING

     

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

     Date Introduced: February 03, 2017

     Referred To: House Municipal Government

     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.

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     (a) Any residential property that has been issued an occupancy permit on or after January

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1, 1995, after substantial rehabilitation as defined by the U.S. Department of Housing and Urban

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Development and is encumbered by a covenant recorded in the land records in favor of a

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governmental unit or Rhode Island housing and mortgage finance corporation restricting either or

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both the rents that may be charged to tenants of the property or the incomes of the occupants of

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

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

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

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of the year-round housing units reported in the census, as set forth in ยง45-53-3, may adopt an

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

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

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provided for in this section.

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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 -- TAXATION OF LOW-INCOME HOUSING

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

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

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

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

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     This act would take effect upon passage.

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