2018 -- H 8019

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LC005358

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

     Introduced By: Representatives Maldonado, Tobon, Kazarian, Barros, and Slater

     Date Introduced: March 29, 2018

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-3-34 of the General Laws in Chapter 44-3 entitled "Property

Subject to Taxation" is hereby amended to read as follows:

     44-3-34. Central Falls -- Homeowner exemption.

     (a) The city council of the city of Central Falls, may, by ordinance, provide that the

property of each person who is a domiciled resident of the city of Central Falls and which

property is the principal residence of that person is exempt from taxation as follows: single-

family dwellings not to exceed sixty thousand dollars ($60,000) of assessed valuation; two (2)

family dwellings not to exceed five thousand dollars ($5,000) of assessed valuation; three (3)

through eight (8) family dwellings and commercial units not to exceed three thousand dollars

($3,000) of assessed valuation. The exemption is applied to residential property and includes

property with up to a total of eight (8) residential units and may include one commercial or

professional use unit as part of the total of eight (8) assessed units; provided, that the person

entitled to the exemption has presented to the city tax assessors, on or before the last day on

which sworn statements may be filed with the assessors for the year for which exemption is

claimed. That person is entitled to the exemption as long as his or her legal residence remains

unchanged.

     (b) Each person upon application for exemption shall provide by means of a sworn

statement to the assessor clear and convincing evidence to establish his or her legal residence at

the property subject to the exemption.

     (c) In the event that the property subject to the exemption should be sold or otherwise

transferred during the year for which the exemption is claimed to a person who does not qualify

for the exemption, the exemption is deemed void and the seller or transferor is liable to the city

for reimbursement of any tax benefit received as a result of the exemption. In the event property

granted an exemption under this section is sold or transferred during the year for which the

exemption is claimed, the city of Central Falls, upon approval of the city council, may provide for

a proration of the homestead exemption in cases where title to a property passes from:

     (1) Those not entitled to claim an exemption to those who are entitled to claim an

exemption; or

     (2) A person entitled to claim an exemption to those who are not entitled to claim an

exemption.

     (d) The city council of the city of Central Falls shall, by ordinance, establish rules and

regulations governing the acceptance of evidence of residence.

     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 -- PROPERTY SUBJECT TO TAXATION

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     This act would provide for proration of a homestead exemption in the city of Central

Falls in cases when property is transferred during the year for which the exemption is claimed.

     This act would take effect on August 1, 2018.

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