2019 -- H 5050

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LC000166

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES

     

     Introduced By: Representatives Cortvriend, Donovan, Edwards, and Canario

     Date Introduced: January 09, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-5-1, 44-5-12, 44-5-13, 44-5-26 and 44-5-30 of the General

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

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read as follows:

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     44-5-1. Powers of city or town electors to levy -- Date of assessment of valuations.

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     The electors of any city or town qualified to vote on any proposition to impose a tax or

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for the expenditure of money, when legally assembled, may levy a tax for the purposes authorized

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by law, on the ratable property of the city or town, either in a sum certain, or in a sum not less

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than a certain sum and not more than a certain sum. The tax is apportioned upon the assessed

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valuations pursuant to § 44-5-12 as determined by the assessors of the city or town as of

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December 31 in each year at 12:00 A.M. midnight, the date being known as the date of

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assessment of city or town valuations.

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     44-5-12. Assessment at full and fair cash value. Assessment of value.

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     (a) All real property subject to taxation shall be assessed at its full and fair cash value, or

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at a uniform percentage of its value, not to exceed either one hundred percent (100%), of its value

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as of December 31 in the year of the last update or revaluation or the current fair market value,

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whichever is greater; however, a taxable building damaged due to fire or natural disaster shall be

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taxed at the current fair market value for all periods that the building is unavailable for its

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intended use to be determined by the assessors in each town or city; provided, that:

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     (1) Any residential property encumbered by a covenant recorded in the land records in

 

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favor of a governmental unit or Rhode Island housing and mortgage finance corporation

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restricting either or both the rents that may be charged or the incomes of the occupants shall be

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assessed and taxed in accordance with § 44-5-13.11;

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     (2) In assessing real estate that is classified as farm land, forest, or open space land in

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accordance with chapter 27 of this title, the assessors shall consider no factors in determining the

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full and fair cash value of the real estate other than those that relate to that use without regard to

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neighborhood land use of a more intensive nature;

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     (3) Warwick. The city council of the city of Warwick is authorized to provide, by

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ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick

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who makes any improvements or additions on his or her principal place of residence in the

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amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the

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city of Warwick, is exempt from reassessment of property taxes on the improvement or addition

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until the next general citywide reevaluation of property values by the tax assessor. For the

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purposes of this section, "residence" is defined as voting address. This exemption does not apply

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to any commercial structure. The property owner shall supply all necessary plans to the building

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official for the improvements or addition and shall pay all requisite building and other permitting

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fees as now are required by law; and

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     (4) Central Falls. The city council of the city of Central Falls is authorized to provide, by

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ordinance, that the owner of any dwelling of one to eight (8) units who makes any improvements

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or additions to his or her residential or rental property in an amount not to exceed twenty-five

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thousand dollars ($25,000), as determined by the tax assessor of the city of Central Falls, is

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exempt from reassessment of property taxes on the improvement or addition until the next general

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citywide reevaluation of property values by the tax assessor. The property owner shall supply all

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necessary plans to the building official for the improvements or additions and shall pay all

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requisite building and other permitting fees as are now required by law.

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     (5) Tangible property shall be assessed according to the asset classification table as

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defined in § 44-5-12.1.

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     (6) Provided, however, that, for taxes levied after December 31, 2015, new construction

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on development property is exempt from the assessment of taxes under this chapter at the full and

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fair cash value of the improvements, as long as:

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     (i) An owner of development property files an affidavit claiming the exemption with the

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local tax assessor by December 31 each year; and

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     (ii) The assessor shall then determine if the real property on which new construction is

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located is development property. If the real property is development property, the assessor shall

 

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exempt the new construction located on that development property from the collection of taxes on

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improvements, until such time as the real property no longer qualifies as development property,

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as defined herein.

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     For the purposes of this section, "development property" means: (A) Real property on

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which a single-family residential dwelling or residential condominium is situated and said single-

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family residential dwelling or residential condominium unit is not occupied, has never been

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occupied, is not under contract, and is on the market for sale; or (B) Improvements and/or

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rehabilitation of single-family residential dwellings or residential condominiums that the owner

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of such development property purchased out of a foreclosure sale, auction, or from a bank, and

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which property is not occupied. Such property described in § 44-5-12(a)(6)(ii) shall continue to

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be taxed at the assessed value at the time of purchase until such time as such property is sold or

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occupied and no longer qualifies as development property. As to residential condominiums, this

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exemption shall not affect taxes on the common areas and facilities as set forth in § 34-36-27. In

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no circumstance shall such designation as development property extend beyond two (2) tax years

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and a qualification as a development property shall only apply to property that applies for, or

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receives, construction permits after July 1, 2015. Further, the exemptions set forth in this section

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shall not apply to land.

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     The exemptions set forth in this subsection (a)(6) for development property shall expire

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as of December 31, 2021.

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     (b) Municipalities shall make available to every land owner whose property is taxed

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under the provisions of this section a document that may be signed before a notary public

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containing language to the effect that they are aware of the additional taxes imposed by the

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provisions of § 44-5-39 in the event that they use land classified as farm, forest, or open space

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land for another purpose.

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     (c) Pursuant to the provisions of § 44-3-29.1, all wholesale and retail inventory subject to

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taxation is assessed at its full and fair cash value, or at a uniform percentage of its value, not to

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exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each town and city.

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Once the fiscal year 1999 value of the inventory has been assessed, this value shall not increase.

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The phase-out rate schedule established in § 44-3-29.1(d) applies to this fixed value in each year

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of the phase out.

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     44-5-13. Assessment and apportionment according to law -- Date of assessment.

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     The assessors shall assess all valuation and apportion any tax levy on the inhabitants of

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the city or town and the ratable property in the city or town according to law, and the assessed

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valuation of the ratable property is made as of the date of assessment provided in § 44-5-1 and

 

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shall be in accordance with the provisions of § 44-5-12; except that personal property consisting

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of stocks in trade and materials used in manufacture, which include raw materials, fuel, goods in

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process of manufacture, and completed products, except those which are specifically exempt by

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statute, are estimated at the average of the personalty kept on hand or located in the taxing district

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during the twelve (12) months ending with the date of assessment, or the average of any portion

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of the twelve (12) months when the business has not been carried on or located in the taxing

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district for a year.

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     44-5-26. Petition in superior court for relief from assessment.

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     (a) Any person aggrieved on any ground whatsoever by any assessment of taxes against

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him or her in any city or town, or any tenant or group of tenants, of real estate paying rent

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therefrom, and under obligation to pay more than one-half of the taxes thereon, may within ninety

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(90) days from the date the first tax payment is due, file an appeal in the local office of tax

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assessment; provided, if the person to whom a tax on real estate is assessed chooses to file an

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appeal, the appeal filed by a tenant or group of tenants will be void. For the purposes of this

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section, the tenant(s) has the burden of proving financial responsibility to pay more than one-half

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(1/2) of the taxes. The assessor has forty-five (45) days to review the appeal, render a decision

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and notify the taxpayer of the decision. The taxpayer, if still aggrieved, may appeal the decision

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of the tax assessor to the local tax board of review, or in the event that the assessor does not

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render a decision, the taxpayer may appeal to the local tax board of review at the expiration of the

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forty-five (45) day period. Appeals to the local tax board of review are to be filed not more than

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thirty (30) days after the assessor renders a decision and notifies the taxpayer, or if the assessor

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does not render a decision within forty-five (45) days of the filing of the appeal, not more than

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ninety (90) days after the expiration of the forty-five (45) day period. The local tax board of

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review shall, within ninety (90) days of the filing of the appeal, hear the appeal and render a

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decision within thirty (30) days of the date that the hearing was held. Provided, that a city or town

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may request and receive an extension from the director of the Rhode Island department of

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revenue.

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     (b) Appeals to the local office of tax assessment are to be on an application. In the event

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of an appeal to the local tax board of review, the local office of tax assessment, upon request by

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the taxpayer, shall forward the application to the local tax board of review. The application shall

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be in the following form:

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STATE OF RHODE ISLAND

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FISCAL YEAR ________ ________________________

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Name of City or Town

 

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APPLICATION FOR APPEAL OF PROPERTY TAX

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     For appeals to the tax assessor, this form must be filed with the local office of tax

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assessment within ninety (90) days from the date the first tax payment is due. For appeals to the

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local tax board of review, this form must be filed with the local tax board of review not more than

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thirty (30) days after the assessor renders a decision, or if the assessor does not render a decision

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within forty-five (45) days of the filing of the appeal, not more than ninety (90) days after the

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expiration of the forty-five (45) day period.

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1. TAXPAYER INFORMATION:

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A. Name(s) of Assessed Owner:

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B. Name(s) and Status of Applicant (if other than Assessed Owner):

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____________Subsequent Owner (Acquired Title After December 31 on

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20________ )

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________ Administrator/Executor ________ Lessee ________ Mortgagee _________

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Other Specify ________

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C. Mailing Address and Telephone No.: _________________ ( ) _________________

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Address Tel. No.

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D. Previous Assessed Value _____________ E. New Assessed Value _____________

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2. PROPERTY IDENTIFICATION: Complete using information as it appears on tax bill.

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A. Tax Bill Account No.: _______ Assessed Valuation ________ Annual Tax

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B. Location: ________________________ Description:

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No. Street Zip

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Real Estate Parcel Identification: Map ______ Block ______ Parcel ______ Type ______

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Tangible Personal

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C. Date Property Acquired: Purchase Price: Total cost of any improvements __________

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What is the amount of fire insurance on building:

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3. REASON(S) REDUCTION SOUGHT: Check reason(s) reduction is warranted and briefly

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explain why it applies. Continue explanation on attachment if necessary.

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Overvaluation. Incorrect Usage Classification.

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Disproportionate Assessment. Other Specify:

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Applicant's Opinion of Value $ Fair Market Value Class Assessed Value

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(as of December

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31 in the year of

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the last update or

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revaluation for

 

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real estate and

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as of December 31

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of the tax year

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for personal estate;)

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     Explanation

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     Have you filed a true and exact account this year with the City Assessor as required by

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law?

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Comparable Properties that support your claim:

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Address Sale Price Sales Date Property Type Assessed value

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4. SIGNATURES;

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SIGNATURE OF APPLICANT DATE

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SIGNATURE OF AUTHORIZED AGENT DATE

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___________________________________________________________( )_______________

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Name of Preparer Address Tel. No.

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TAXPAYER INFORMATION ABOUT APPEAL PROCEDURE

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     REASONS FOR AN APPEAL. It is the intent of the general assembly to ensure that all

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taxpayers in Rhode Island are treated equitably. Ensuring that taxpayers are treated fairly begins

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where cities and towns meet defined standards related to performing property values. All

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properties should be assessed in a uniform manner, and properties of equal value should be

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assessed the same.

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     TO DISPUTE YOUR VALUATION OR ASSESSMENT OR CORRECT ANY OTHER

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BILLING PROBLEM OR ERROR THAT CAUSED YOUR TAX BILL TO BE HIGHER

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THAN IT SHOULD BE, YOU MUST APPEAL WITHIN NINETY (90) DAYS FROM THE

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DATE THE FIRST TAX PAYMENT IS DUE.

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     You may appeal your assessment if your property is: (1) OVERVALUED (assessed value

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is more than the fair market value as of December 31 in the year of the last update or revaluation

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for real estate, or the current fair market value, whichever is greater, and as of December 31 of

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the tax year for personal estate for any reason, including clerical and data processing errors; (2)

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disproportionately assessed in comparison with other properties; (3) classified incorrectly as

 

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residential, commercial, industrial or open space, farm or forest; (4) illegal tax partially or fully

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exempt; (5) modified from its condition from the time of the last update or revaluation.

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     WHO MAY FILE AN APPLICATION: You may file an application if you are (1) the

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assessed or subsequent (acquiring title after December 31) owner of the property; (2) the owner's

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administrator or executor; (3) a tenant or group of tenants of real estate paying rent therefrom,

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and under obligations to pay more than one-half (1/2) of the taxes thereon; (4) a person owning or

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having an interest in or possession of the property; or (5) a mortgagee if the assessed owner has

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not applied. In some cases, you must pay all or a portion of the tax before you can file.

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     WHEN AND WHERE APPLICATION MUST BE FILED. Your application must be

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filed with the local office of tax assessment within NINETY (90) days from the date the first tax

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payment is due. THESE DEADLINES CANNOT BE EXTENDED OR WAIVED BY THE

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ASSESSOR FOR ANY REASON. IF YOUR APPLICATION IS NOT FILED ON TIME, YOU

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LOSE ALL RIGHTS TO AN ABATEMENT AND THE ASSESSOR CANNOT BY LAW

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GRANT YOU ONE. AN APPLICATION IS FILED WHEN RECEIVED BY THE

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ASSESSOR'S OFFICE.

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     PAYMENT OF TAX. Filing an application does not stay the collection of your taxes. In

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some cases, you must pay the tax when due to appeal the assessors disposition of your

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application. Failure to pay the tax assessed when due may also subject you to interest charges and

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collection action. To avoid any loss of rights or additional charges, you should pay the tax as

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assessed. If an abatement is granted and you have already paid the entire year's tax as abated, you

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will receive a refund of any overpayment.

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     FILING AN ACCOUNT. Rhode Island General Laws Section 44-5-15 requires the

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annual filing of a true and exact account of all ratable estate owned or possessed by every person

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and corporate body. The time to file is between December 31, and January 31, of intention to

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submit declaration by March 15. Failure to file a true and full account, within the prescribed time,

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eliminates the right to appeal to the superior court, subject to the exceptions provided in Rhode

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Island General Laws Section 44-5-26(b). No amended returns will be accepted after March 15th.

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Such notice of your intention must be sent by certified mail, postage prepaid, postmark no later

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than 12 o'clock midnight of the last day, January 31. No extensions beyond March 15th can be

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granted. The form for filing such account may be obtained from the city or town assessor.

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     ASSESSOR'S DISPOSITION. Upon applying for a reduction in assessment, you may be

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asked to provide the assessor with further written information about the property and to permit

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them to inspect it. Failure to provide the information or permit an inspection within thirty (30)

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days of the request may result in the loss of your appeal rights.

 

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     APPEAL. The assessor shall have forty-five (45) days to review the appeal, render a

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decision and notify the taxpayer of the decision. The taxpayer, if still aggrieved, may appeal the

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decision of the tax assessor to the local tax board of review, or in the event that the assessor does

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not render a decision, the taxpayer may appeal to the local tax board of review at the expiration of

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the forty-five (45) day period. Appeals to the local tax board of review shall be filed not more

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than thirty (30) days after the assessor renders a decision and notifies the taxpayer, or if the

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assessor does not render a decision within forty-five (45) days of the filing of the appeal, not

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more than ninety (90) days after the expiration of the forty-five (45) day period.

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DISPOSITION OF APPLICATION (ASSESSOR'S USE ONLY)

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GRANTED Assessed Value

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Date Sent____________ Abated Value

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Date Returned__________ DENIED Adjusted Value

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Assessed Tax

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On-Site Inspection DEEMED DENIED Abated Tax

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Date Adjusted Tax

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By__________________

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Date Voted/Deemed Denied Tax Board of Review

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Date Change Certificate No.

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     Any person still aggrieved on any ground whatsoever by an assessment of taxes against

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him or her in any city or town may, within thirty (30) days of the tax board of review decision

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notice, file a petition in the superior court for the county in which the city or town lies for relief

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from the assessment, to which petition the assessors of taxes of the city or town in office at the

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time the petition is filed shall be made parties respondent, and the clerk shall thereupon issue a

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citation substantially in the following form:

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THE STATE OF

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RHODE ISLAND AND PROVIDENCE PLANTATIONS.

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     To the sheriffs of several counties, or to their deputies, Greetings: We command you to

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summon the assessors of taxes of the town of _________ : to wit, _________ of _________ (if to

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be found in your precinct) to answer the complaint of __________ of _________ on the return

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day hereof (said return day being the _______ day of _______ A.D. 20_______) in the superior

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court to be holden at the county courthouse in __________ as by petition filed in court is fully set

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forth; and to show cause why said petition should not be granted. Hereof fail not, and make true

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return of this writ with your doings thereon. Witness, the seal of our superior court, at

 

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__________ this ________ day of _________ in the year ______

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_____________________________________, Clerk.

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     (c) Provided, that in case the person has not filed an account, or filed an appeal first

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within the local tax board of review, that person shall not have the benefit of the remedy provided

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in this section and in §§ 44-5-27 -- 44-5-31, unless: (1) that person's real estate has been assessed

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at a value in excess of the value at which it was assessed on the last preceding assessment day,

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whether then owned by that person or not, and has been assessed, if assessment has been made at

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full and fair cash value, at a value in excess of its full and fair cash value, or, if assessment has

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purportedly been made at a uniform percentage of full and fair cash value, at a percentage in

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excess of the uniform percentage; or (2) the tax assessed is illegal in whole or in part; and that

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person's remedy is limited to a review of the assessment on the real estate or to relief with respect

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to the illegal tax, as the case may be.

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     44-5-30. Judgment on petition where taxpayer has filed account.

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     If the taxpayer has given in an account, and if on the trial of the petition, either with or

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without a jury, it appears that the taxpayer's real estate, tangible personal property, or intangible

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personal property has been assessed, if assessment has been made at full and fair cash value, at a

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value in excess of its full and fair cash value, or if assessment has purportedly been made at a

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uniform percentage of full and fair cash value, at a percentage in excess of the uniform

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percentage, in excess of the provisions of § 44-5-12 or if it appears that the tax assessed is illegal

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in whole or in part, the court shall give judgment that the sum by which the taxpayer has been so

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overtaxed, or illegally taxed, with his or her costs, be deducted from his or her tax; but if the

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taxpayer's tax be paid, whether before or after the filing of the petition, then the court shall give

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judgment for the petitioner for the sum by which he or she has been so overtaxed, or illegally

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taxed, plus the amount of any penalty paid on the tax, with interest from the date on which the tax

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and penalty were paid and costs, which judgment shall be paid to the petitioner by the city or

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town treasurer out of the treasury. If, however, on the trial of the petition, it appears that the

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taxpayer has fraudulently concealed or omitted any property from his or her account, or if it

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appears that the assessors have not assessed either the taxpayer's real estate or his or her tangible

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personal property or his or her intangible personal property at a value in excess of its full and fair

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cash value, if assessment has been made at full and fair cash value, or if assessment has

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purportedly been made at a uniform percentage of full and fair cash value, at a percentage in

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excess of the uniform percentage, the provisions of § 44-5-12 and that the taxpayer has not been

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illegally taxed, the assessors shall have judgment and execution for their costs.

 

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     SECTION 2. This act shall take effect upon passage.

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LC000166

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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 authorize tax assessors to use either the last revaluation or the current fair

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market value, whichever is greater, as the assessed valuation.

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     This act would take effect upon passage.

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LC000166

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