2019 -- H 5973

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LC002264

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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 LOCAL REAL ESTATE INFRASTRUCTURE TAX FOR THE CITY OF

NEWPORT

     Introduced By: Representative Lauren H. Carson

     Date Introduced: April 10, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 9 of the public laws of 1952 entitled “Finance” is hereby amended

by adding thereto the following Section 9-25 entitled “Newport Real Estate Infrastructure Tax”.

     SECTION 2. The city council of the city of Newport is hereby authorized to levy an

additional tax upon real estate property transfers within said city in accordance with Section 3 of

this act.

     The tax, once adopted, shall remain in effect until the city council repeals said tax.

     SECTION 3. Whenever a tax is assessed by § 44-25-1 on the transfer of real property

situated in the city of Newport, there is hereby imposed, in addition to said tax, an additional tax

not to exceed the amount of two percent (2%) of the purchase price.

     As used herein, the total purchase price shall mean the aggregate consideration received

by a seller or sellers collectively for the transfer of each recorded lot of real property whether in a

single conveyance or in separate contemporaneous conveyances, which transfer or transfers result

in the conveyance of either (i) the entire fee interest, or (ii) a lesser fee interest in the real property

including, without limitation, conservation easements and development rights.

     The payment of the additional tax imposed shall be evidenced by the affixing of

document stamps, provided by the city of Newport, to every original instrument presented for

recording in the same manner as set forth in § 44-25-3. Said tax shall be the obligation of the

buyer unless otherwise agreed to by the parties of the transfer.

     SECTION 4. Any funds received by the city of Newport pursuant to this act shall be used

solely for the repair, rehabilitation and construction of municipal or public school infrastructure

improvements in the city of Newport.

     SECTION 5. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LOCAL REAL ESTATE INFRASTRUCTURE TAX FOR THE CITY OF

NEWPORT

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     This act would authorize the city council of the city of Newport to levy an additional tax

upon real property transfers within the city, not to exceed the amount of two percent (2%) of the

purchase price. The funds generated from such imposition of tax shall be used solely for the

repair, rehabilitation and construction of municipal or public school infrastructure improvements

in the city of Newport.

     This act would take effect upon passage.

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