2017 -- S 0395

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LC001783

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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: Senators Conley, Lombardi, Lombardo, Archambault, and Pearson

     Date Introduced: March 02, 2017

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     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

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

amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

for the exemption established by this section.

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

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

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

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

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

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

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

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

assessed value.

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

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

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

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

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

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

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

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

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

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

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

established by this section.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

eligibility for the exemption established by this section.

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

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

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

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

those who are entitled to claim an exemption.

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

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

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

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

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

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

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

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

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

eligibility for the exemption established by this section.

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

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

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

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

those who are entitled to claim an exemption.

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

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

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

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

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

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

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

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

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

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

established by this section.

     (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 West

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

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

those who are entitled to claim an exemption.

     44-5-85. Narragansett homestead exemption.

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

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

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

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

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

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

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

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

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

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

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

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

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

governing eligibility for the exemption established by this section.

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

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

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

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

are entitled to claim an exemption.

     SECTION 2. This act shall take effect on August 1, 2017.

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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

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

     This act would take effect on August 1, 2017.

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LC001783

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