2017 -- S 0570 SUBSTITUTE 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: Senators Sosnowski, P Fogarty, Conley, and Archambault

     Date Introduced: March 15, 2017

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

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 Land withdrawn from classification for commercial renewable energy

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

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

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

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

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

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

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

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

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

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

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

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

infrastructure associated with the generation of renewable energy.

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

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

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

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

treatment for renewable energy systems prescribed by §44-5-3(c).

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

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

to rules and regulations that will be established by the department of environmental management

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

December 30, 2017.

     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 no more than twenty percent (20%) of the total land acreage

previously classified as farm, forest or open space land from land use change tax if the change is

for purposes of a commercial renewable energy system.

     This act would take effect upon passage.

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