2018 -- S 2748 SUBSTITUTE A AS AMENDED

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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 - LEVY AND ASSESSMENT OF LOCAL TAXES

     

     Introduced By: Senator Ryan W. Pearson

     Date Introduced: March 27, 2018

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-5-12.1 of the General Laws in Chapter 44-5 entitled "Levy and

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Assessment of Local Taxes" is hereby amended to read as follows:

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     44-5-12.1. Assessment of tangible personal property.

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     (a) All tangible personal property subject to taxation shall be assessed for taxation based

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on the original purchase price (new or used) including all costs such as freight and installation.

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Assets will be classified and depreciated as defined in this section.

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     (b) The following classification and depreciation table shall be used in determining the

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assessed value of tangible personal property.

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State of Rhode Island Tangible Property Classification

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Class of Assets Class I Short Life Class II Mid-Life Class III Long Life

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Age 1-5 yrs 6-12 yrs 13+ yrs

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1 95 95 95

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2 80 90 90

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3 60 80 85

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4 30 70 80

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5 20 60 75

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6 20 50 70

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7 20 40 65

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8 20 30 60

 

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9 20 30 55

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10 20 30 50

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11 20 30 45

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12 20 30 40

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13 20 30 35

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14 20 30 30

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15+ 20 30 30

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     Assets Shall Not be Trended

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     (c) Assets shall be classified on an annual basis by the Rhode Island Association of

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Assessing Officers' Personal Property Committee based on the following table:

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     INDUSTRY GROUP IN YEARS CLASS

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     Aerospace industry II

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     Agriculture machinery and equipment II

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      cotton ginning II

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     Aircraft and all helicopters II

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     Amusement and theme parks II

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     Apparel and fabricated textile manufacturing II

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     Automobile repair shops II

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     Bakeries and confectionery production II

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     Barber and beauty shops II

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     Billboards II III

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     Brewery equipment not used directly in manufacturing II

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     Cable television, headend facilities Cable television: All equipment including

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      set top boxes, remotes, and other related equipment II

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     Aerial, underground, and drops, including MDUS. III

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      microwave systems II

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      program origination II

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      service and test II

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      subscriber connection and distribution II

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     Canneries and frozen food production II

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     Cement manufacture processing III

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     Chemical and allied production II

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     Clay products manufacturing processing III

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     Clocks and watches, manufacturing II

 

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      electronic instrumentation I

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     Cold storage and ice-making equipment III

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     Cold storage warehouse equipment II

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     Computers, personal computers (PC), laptops, tablets, cellphones,

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      mainframe/servers, peripherals, keyboard, mouse, I

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      mainframe I/II

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      peripherals I

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     Condiments, manufacturing and processing II

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     Construction equipment, general construction, backhoes, forklifts, loaders,

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      cranes, unregistered vehicles II

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     Dairy products manufacturing processing II

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     Data handling equipment, except computers II

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     Printers, copiers, bridges, routers and gateways II

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     Distilling II

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     Electrical equipment not used in manufacturing II

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     Electronic companies, steam production III

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      other production, combined cycle III

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      gas turbines III

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      nuclear production III

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      transmission III

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      distribution III

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     Electronic equipment manufacturing I II

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     Fabricated metal products/special tools II

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      special tools I

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     Fishing equipment, excluding boats and barges, lines, nets, I

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     Food and beverage production II

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      special handling devices I

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     Fur processing II

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     Gas distribution, total distribution equipment III

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     Optional - for equipment by category:

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      mains and services, plastic III

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      mains and services, steel III

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      meters, regulators, installations III

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      other distribution equipment III

 

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     Glass and glass products/special tools II

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      special tools I

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     Grain and grain mill products manufacture processing III

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     Gypsum products III

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     Hand tools I II

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     Hospital furnishings and equipment II

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     Hotel and motel furnishings and equipment II

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     Jewelry products and pens II

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     Knitwear and knit products, ex, work uniforms I

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     Laundry equipment II

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     Leather and leather products II

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     Logging, timber cutting I/II II

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     Machinery manufacturing, except, as otherwise listed II

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     Marine construction II

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     Meatpacking II

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     Medical and dental supply production II

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     Metalworking machinery manufacturing processing II

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     Mining and quarrying II

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     Motion picture and television production II

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     Motor vehicle and parts/special tools manufacturing II

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      special tools I

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     Office furniture and equipment II

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     Optical lenses and instrument manufacturing processing II

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     Paints and varnishes I

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     Paper and pulp manufacturing II

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      converted paper, paperboard and pump II

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     Petroleum and natural gas, drilling, onshore II

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drilling, offshore II

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      exploration and production II

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      petroleum refining III

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      pipeline transportation III

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     Plastics manufacturing I/II

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     Plastic products manufacturing processing/special tools II

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      special tools I

 

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     Primary metals production, nonferrous and foundry products III

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      special tools I III

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     Primary steel mill products III

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     Printing and publishing II

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     Professional and scientific instruments II

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     Radio and television, broadcasting I/II II

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     Railroad transportation equipment manufacturing II

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      locomotive manufacturing II

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     Recreation and amusement II

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     Retail trades, fixtures and equipment II

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     Residential furniture II

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     Restaurant and bar equipment II

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     Restaurant equipment, fast foods II

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     Rubber products manufacturing processing/special tools II

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      special tools I

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     Sawmills, permanent/portable II

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      portable I

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     Service establishments II

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     Ship and boat building machinery and equipment/special tools II

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      special tools I

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     Soft drink manufacture processing and bottling II

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     Steam production and distribution III

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     Stone products manufacturing processing III

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     Sugar and sugar products manufacturing III

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     Telecommunications, local exchange and interstate II

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      analog switching I/II II

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      digital switching I/II

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      circuit, digital, analog, optic I/II II

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      circuit, analog II

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      circuit, optic I/II

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      other central office equipment I/II

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      information/origination equipment I/II

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      smart phones I

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      metallic cable II III

 

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      fiber cable, poles, conduit III

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      poles III

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      conduit III

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     Telecommunications, interstate interexchange analog switching I/II

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      digital switching I/II

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      metallic cable II

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      fiber cable III

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      poles III

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      conduit III

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      all other equipment I/II II

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     Telecommunications, cellular

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     analog Analog/digital switching I/II II

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      digital switching I/II

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      radio frequency channel and control I/II II

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      power equipment II

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      antennae II

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      towers III

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      transmission equipment I/II II

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      cellular phones I

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     Textile products, including finishing and dyeing II

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      manufacture of nonwoven fabrics II

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      manufacture of yarn Yarn, thread and woven fabrics II

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      manufacture of textured yarns II

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     Theater equipment II

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     Tobacco and tobacco products III

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     Vegetable oil products III

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     Utilities/power production III

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     Generation, transmission, or distribution equipment III

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     Waste reduction and resource recovery II

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     Water transportation III

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      vessels, barges and tugs III

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     Water utilities III

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     Wharves, docks and piers III

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     Wholesale trade fixtures and equipment II

 

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     Wood products and furniture manufacturing II

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     (d) Any industry, group, or asset not enumerated in section (b) of this section, shall be

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categorized as class II.

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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 - LEVY AND ASSESSMENT OF LOCAL TAXES

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     This act would revise the list of personal property subject to local taxation and provide

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greater clarity to businesses in the state concerning such taxes.

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     This act would take effect upon passage.

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