2019 -- S 0061

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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: Senators Coyne, Seveney, DiPalma, Euer, and Valverde

     Date Introduced: January 16, 2019

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

Taxes" is hereby amended by adding thereto the following section:

     44-5-87. Property tax credit in exchange for volunteer services performed by

persons over age sixty (60).

     (a)(1) Each city and town, by resolution or ordinance adopted by the city or town council,

may establish a program to allow persons over the age of sixty (60) years to volunteer to provide

services to such city or town. In exchange for such volunteer services, the city or town shall

reduce the real property tax obligations of such person over the age of sixty (60) years on their tax

bills and any reduction so provided shall be in addition to any exemption or abatement to which

any such person is otherwise entitled and no such person shall receive a rate of, or be credited

with, more than the current state minimum wage per hour for services provided pursuant to such

reduction nor shall the reduction of the real property tax bill exceed one thousand five hundred

dollars ($1,500) in a given tax year. It shall be the responsibility of the city or town to maintain a

record for each taxpayer including, but not limited to, the number of hours of service and the total

amount by which the real property tax has been reduced and to provide a copy of such record to

the assessor in order that the actual tax bill reflect the credit granted. A copy of such record shall

also be provided to the taxpayer prior to the issuance of the actual tax bill. Such cities and towns

shall have the power to create local rules and procedures for implementing this section in any way

consistent with the intent of this section.

     (2) In no instance shall the amount by which a person's property tax liability is reduced in

exchange for the provision of services be considered income, wages, or employment for purposes

of taxation, for the purposes of withholding taxes, for the purposes of workers' compensation or

any other applicable provisions of the general laws, but such person while providing such

services shall be considered a public employee; provided, however, that such services shall be

deemed employment for the purposes of unemployment insurance.

     (b) A city or town, by vote of its city or town council, may adjust the credit in subsection

(a) of this section by:

     (1) Allowing an approved representative, for persons physically unable, to provide such

services to the city or town; or

     (2) Allowing the maximum reduction of the real property tax bill to be based on one

hundred twenty-five (125) volunteer service hours in a given tax year, rather than one thousand

five hundred dollars ($1,500).

     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 authorize cities and towns to establish a program to allow persons over

the age of sixty (60) to provide volunteer services in exchange for a property tax credit up to one

thousand five hundred dollars ($1,500). The credit would be calculated by multiplying the

number of volunteer service hours by the state minimum wage per hour.

     This act would take effect upon passage.

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