2019 -- S 0985

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LC002837

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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 -- PROVIDENCE HOMESTEAD EXEMPTION

     Introduced By: Senators Ciccone, Quezada, and Bell

     Date Introduced: June 18, 2019

     Referred To: Senate Housing & Municipal Government

     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. Providence - Homestead exemption.

     (a) The mayor, upon approval of the city council of the city of Providence, is authorized

to annually fix the amount, if any, of a homestead exemption with respect to assessed value from

local taxation on taxable real property used for residential purposes in the city of Providence and

to grant homestead exemptions to the owner(s) of that residential real estate in amounts not to

exceed the following percentages:

     (1) The value of the first three hundred fifty thousand dollars ($350,000) shall receive a

homestead exemption of forty percent (40%) of value.

     (2) The remaining value shall receive a homestead exemption of twenty-eight percent

(28%) of value.

     (b) Any homestead exemption only applies to residential property improved with a

dwelling house. There shall be no homestead exemption granted for vacant land, or for the

residential portion of mixed-use property in the city of Providence, up to five (5) units used for

residential purposes. In order to determine compliance with the homestead exemption as outlined

in this section, the city council shall provide, by resolution or ordinance, rules and regulations

governing eligibility for the exemption established by this section.

     (c) The city council of the city of Providence may provide for a proration of the

homestead exemption in cases where title to property passes from those not entitled to the

exemption to those who are entitled to claim the exemption.

     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 -- PROVIDENCE HOMESTEAD EXEMPTION

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     This act would enable the city of Providence to adopt a homestead tax exemption. The

value of the first three hundred fifty thousand ($350,000) would receive a homestead exemption

of forty percent (40%) of value while the remaining value would receive a homestead exemption

of twenty-eight percent (28%) of value.

     This act would take effect upon passage.

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LC002837

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