2019 -- H 5948

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LC002325

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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 Morin, Phillips, Carson, O'Brien, and Casey

     Date Introduced: April 03, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-5-13.11 of the General Laws in Chapter 44-5 entitled "Levy and

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

     44-5-13.11. Qualifying low-income housing -- Assessment and taxation.

     Any residential property that has been issued an occupancy permit on or after January 1,

1995, after substantial rehabilitation as defined by the U.S. Department of Housing and Urban

Development and is encumbered by a covenant recorded in the land records in favor of a

governmental unit or Rhode Island housing and mortgage finance corporation restricting either or

both the rents that may be charged to tenants of the property or the incomes of the occupants of

the property, is subject to a tax that equals eight percent (8%) of the property's previous years'

gross scheduled rental income or a lesser percentage as determined by each municipality;

provided, that where twelve percent (12%) or more of the residential units within a municipality

qualify for low-income housing, the tax that may be charged is ten percent (10%) of the

property’s current year’s gross scheduled rental income or a lesser percentage as determined by

each municipality. Twenty percent (20%) of the ten percent (10%) tax collected pursuant to this

section shall be used by the local municipalities for public school education aid. This twenty

percent (20%) collected pursuant to this section shall not be used to lower the determination of

the state’s share of foundation education aid, and shall not be taken into consideration in

calculating the state’s share of foundation education aid, as determined pursuant to §§ 16-7.2-3 or

16-7.2-4.

     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 permit a municipality, in which twelve percent (12%) of the housing in a

municipality qualifies for low-income housing, to charge a tax up to ten percent (10%) of the

current year’s gross scheduled rental income. Twenty percent (20%) of the tax collected pursuant

to this increase would be allocated to the local municipalities for public school education aid. The

tax increase would not be used to lower the determination of the state’s share of foundation

education aid, and would not be used in calculating the state’s share of foundation education aid.

     This act would take effect upon passage.

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