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:

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

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

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

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persons over age sixty (60).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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consistent with the intent of this section.

 

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

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

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

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

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

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deemed employment for the purposes of unemployment insurance.

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

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(a) of this section by:

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

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services to the city or town; or

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

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

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five hundred dollars ($1,500).

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

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

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

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

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     This act would take effect upon passage.

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