2017 -- H 5570 SUBSTITUTE B

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LC001463/SUB B

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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-- LEVY AND ASSESSMENT OF LOCAL TAXES

     

     Introduced By: Representatives Lima, O'Brien, Fellela, and Giarrusso

     Date Introduced: February 16, 2017

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-5-60, 44-5-60.1, 44-5-65, 44-5-70, 44-5-80 and 44-5-85 of the

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General Laws in Chapter 44-5 entitled "Levy and Assessment of Local Taxes" are hereby

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amended to read as follows:

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     44-5-60. North Providence -- Homestead exemptions.

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     (a) The mayor, upon approval of the town council of the town of North Providence, is

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authorized to annually fix the amount, if any, of homestead exemption with respect to assessed

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value from local taxation on taxable real property used for residential purposes in the town of

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North Providence and to grant homestead exemptions to the owner or owners of residential real

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estate in an amount not to exceed twenty percent (20%) of the assessed value. The exemption

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only applies to class 3 residential property as defined in § 44-5-57 improved with a dwelling

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house whose owner is a resident of North Providence and who occupies the property as his or her

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principal residence. The dwelling house shall consist of no more than five (5) dwelling units. In

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order to determine compliance with the homestead exemption as outlined in this subsection, the

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town council shall provide, by resolution or ordinance, rules and regulations governing eligibility

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for the exemption established by this section.

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     (b) In the event property granted an exemption under this section is sold or transferred

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during the year for which the exemption is claimed, the exemption is void for that portion of the

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year following the sale or transfer and the buyer or transferee is liable to the town of North

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Providence for any tax benefit received after the sale or transfer the town council of North

 

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Providence may provide for a proration of the homestead exemption in cases where title to

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property passes from those not entitled to claim an exemption to those who are entitled to claim

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an exemption; provided, that there is a homestead exemption for owner occupied residential and

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commercial mixed-use (class 5) real estate in an amount not to exceed ten percent (10%) of the

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assessed value.

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     44-5-60.1. Johnston -- Homestead exemptions.

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     (a) The mayor of the town of Johnston, upon approval of the town council, is authorized

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to annually fix the amount, if any, of homestead exemption with respect to assessed value from

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local taxation on taxable real property used for residential purposes in the town of Johnston and to

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grant homestead exemptions to the owner(s) of that residential real estate in an amount not to

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exceed twenty percent (20%) of the assessed value. That exemption only applies to class 3

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residential property as defined in § 44-5-57 improved with a dwelling house whose owner is a

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resident of Johnston and who occupies the property as his or her principal residence. The

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dwelling house shall consist of no more than five (5) dwelling units. In order to determine

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compliance with the homestead exemption as outlined in this section, the town council shall

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provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption

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established by this section.

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     (b) In the event property granted an exemption under this section is sold or transferred

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during the year for which the exemption is claimed, the exemption is void for that portion of the

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year following the sale or transfer, and the buyer or transferee shall be liable to the town of

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Johnston for any tax benefit received after the sale or transfer the mayor of the town of Johnston,

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upon approval of the town council, may provide for a proration of the homestead exemption in

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cases where title to property passes from those not entitled to claim an exemption to those who

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are entitled to claim an exemption. Provided, that there shall be a homestead exemption for

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owner-occupied residential and commercial mixed-use (class 5) real estate in an amount not to

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exceed ten percent (10%) of the assessed value.

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     44-5-65. East Greenwich -- Homestead exemption.

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     (a) The town council of the town of East Greenwich is authorized to annually fix the

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amount, if any, of a homestead exemption with respect to assessed value from local taxation on

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taxable real property used for residential purposes in the town of East Greenwich and to grant

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homestead exemptions to the owner or owners of residential real estate in an amount not to

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exceed twenty percent (20%) of the assessed value. The exemption only applies to property used

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exclusively for residential purposes, and improved with a dwelling containing less than five (5)

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units. In order to determine compliance with the homestead exemption as outlined in this section,

 

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the town council shall provide, by resolution or ordinance, rules and regulations governing

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eligibility for the exemption established by this section.

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     (b) In the event property granted an exemption under this section is sold or transferred

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during the year for which the exemption is claimed, the town council of the town of East

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Greenwich, upon approval of the town council, may provide for a proration of the homestead

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exemption in cases where title to property passes from those not entitled to claim an exemption to

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those who are entitled to claim an exemption.

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     44-5-70. East Providence -- Homestead exemption.

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     (a) The city council of the city of East Providence is authorized to annually fix the

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amount, if any, of a homestead exemption with respect to assessed value from local taxation on

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taxable real property used for residential purposes in the city of East Providence and to grant

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homestead exemptions to the owner or owners of residential real estate in an amount not to

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exceed fifteen percent (15%) of the assessed value. The exemption only applies to property used

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exclusively for residential purposes, and improved with a dwelling containing less than four (4)

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units. In order to determine compliance with the homestead exemption as outlined in this section,

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the city council shall provide, by resolution or ordinance, rules and regulations governing

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eligibility for the exemption established by this section.

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     (b) In the event property granted an exemption under this section is sold or transferred

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during the year for which the exemption is claimed, the town council of the city of East

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Providence, upon approval of the town council, may provide for a proration of the homestead

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exemption in cases where title to property passes from those not entitled to claim an exemption to

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those who are entitled to claim an exemption.

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     44-5-80. Homestead exemption in the town of West Greenwich.

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     (a) Notwithstanding any other provisions of the general or special laws to the contrary,

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the town council of the town of West Greenwich is authorized to annually fix the amount, if any

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of a homestead exemption with respect to assessed value from local taxation on taxable real

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property used for residential purposes in the town of West Greenwich and to grant homestead

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exemptions to the owner or owners of residential real estate in an amount not to exceed forty

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percent (40%) of the assessed value. The exemption only applies to property used exclusively for

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residential purposes, and improved with a dwelling containing less than five (5) units. In order to

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determine compliance with the homestead exemption as outlined in this section, the town council

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shall provide by ordinance rules and regulations governing eligibility for the exemption

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established by this section.

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     (b) In the event property granted an exemption under this section is sold or transferred

 

LC001463/SUB B - Page 3 of 5

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during the year for which the exemption is claimed, the town council of the town of West

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Greenwich, upon approval of the town council, may provide for a proration of the homestead

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exemption in cases where title to property passes from those not entitled to claim an exemption to

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those who are entitled to claim an exemption.

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     44-5-85. Narragansett homestead exemption.

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     (a) The town council of the town of Narragansett is authorized to annually fix the

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amount, if any, of a homestead exemption, with respect to assessed value, from local taxation on

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taxable real property used for residential purposes or mixed purposes, defined as a combination of

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residential and commercial uses, in the town of Narragansett, and to grant homestead exemptions

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to the owner, or owners, of residential real estate, or combination residential and commercial real

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estate, in an amount not to exceed ten percent (10%) of the assessed value. The exemption shall

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apply to property used exclusively for residential purposes, and improved with a dwelling

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containing less than five (5) units, or real property used for a combination of residential and

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commercial uses. When real property is used for mixed purposes, the percentage of the assessed

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value shall be a prorated amount. The prorated amount shall be the percentage of square feet of

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the parcel used for residential purposes, multiplied by the percentage of the homestead

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exemption. In order to determine compliance with the homestead exemption as outlined in this

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section, the town council shall provide, by resolution or ordinance, rules and regulations

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governing eligibility for the exemption established by this section.

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     (b) In the event property granted an exemption under this section is sold or transferred

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during the year for which the exemption is claimed, the town council of the town of Narragansett,

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upon approval of the town council, may provide for a proration of the homestead exemption in

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cases where title to property passes from those not entitled to claim an exemption to those who

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are entitled to claim an exemption.

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     SECTION 2. This act shall take effect on August 1, 2018.

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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 provide for a proration of the homestead exemption in cases where title to

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property passes from those not entitled to claim an exemption to those who are entitled.

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     This act would take effect on August 1, 2018.

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