2017 -- H 6095 SUBSTITUTE A

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LC002387/SUB A

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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 FARM, FOREST, AND OPEN SPACE LAND

     

     Introduced By: Representatives Handy, and Giarrusso

     Date Introduced: April 07, 2017

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-27 of the General Laws entitled "Taxation of Farm, Forest, and

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Open Space Land" is hereby amended by adding thereto the following section:

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     44-27-10.1. Land withdrawn from classification for commercial renewable energy

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production -- Effect on obligation and the land use change tax.

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     (a) Farmlands classified in the farm, forest or open space program shall not be subject to

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a land use change tax if the landowner converts no more than twenty percent (20%) of the total

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acreage of land which is actively devoted to agricultural or horticultural use to install a renewable

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energy system. Any acreage used for a renewable energy system that is designated for dual use

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under subsection (c) of this section shall not be included in the calculation of the twenty percent

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(20%) restriction. For purposes of this section, land which is actively devoted to agricultural or

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horticultural use shall be defined by rules and regulations established by the department of

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environmental management in consultation with the office of energy resources and shall include

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at a minimum any land which is actively devoted to agricultural or horticultural use that was

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previously used to install a renewable energy system. Those rules shall also define renewable

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energy system to include at a minimum any buffers, access roads, and other supporting

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infrastructure associated with the generation of renewable energy.

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     (b) The tax assessor shall only withdraw from farmland classification the actual acreage

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of the farmland used for a renewable energy system that is not concurrently used as farmland.

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The rest of the farmland shall remain eligible as long as it still meets the program qualification

 

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criteria. This reclassification of farmlands shall not be considered an exception to the tax

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treatment for renewable energy systems prescribed by ยง44-5-3(c).

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     (c) The dual purpose designation for installing a renewable energy system and utilizing

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the land below and surrounding the system for agriculture purposes shall be determined pursuant

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to rules and regulations established by the department of environmental management in

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consultation with the office of energy resources. The regulations shall be adopted no later than

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December 30, 2017.

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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 FARM, FOREST, AND OPEN SPACE LAND

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     This act would exempt land previously classified as farm, forest or open space land from

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land use change tax if the landowner converts no more than twenty percent (20%) acreage to

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install a renewable energy system.

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     This act would take effect upon passage.

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