2020 -- H 7408 | |
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LC003580 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES | |
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Introduced By: Representatives Cortvriend, Chippendale, Canario, Cassar, and | |
Date Introduced: January 31, 2020 | |
Referred To: House Municipal Government | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Sections 44-5-1, 44-5-12, 44-5-13 and 44-5-30 of the General Laws in |
2 | Chapter 44-5 entitled "Levy and Assessment of Local Taxes" are hereby amended to read as |
3 | follows: |
4 | 44-5-1. Powers of city or town electors to levy -- Date of assessment of valuations. |
5 | The electors of any city or town qualified to vote on any proposition to impose a tax or |
6 | for the expenditure of money, when legally assembled, may levy a tax for the purposes authorized |
7 | by law, on the ratable property of the city or town, either in a sum certain, or in a sum not less |
8 | than a certain sum and not more than a certain sum. The tax is apportioned upon the assessed |
9 | valuations pursuant to § 44-5-12 as determined by the assessors of the city or town as of |
10 | December 31 in each year at 12:00 A.M. midnight, the date being known as the date of |
11 | assessment of city or town valuations. |
12 | 44-5-12. Assessment at full and fair cash value. |
13 | (a) All real property subject to taxation shall be assessed at its full and fair cash value, as |
14 | of December 31 in the year of the last update or revaluation, or at a uniform percentage of its |
15 | value thereof, not to exceed one hundred percent (100%), to be determined by the assessors in |
16 | each town or city; provided, that: |
17 | (1) Any residential property encumbered by a covenant recorded in the land records in |
18 | favor of a governmental unit or Rhode Island housing and mortgage finance corporation |
19 | restricting either or both the rents that may be charged or the incomes of the occupants shall be |
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1 | assessed and taxed in accordance with § 44-5-13.11; |
2 | (2) In assessing real estate that is classified as farm land, forest, or open space land in |
3 | accordance with chapter 27 of this title, the assessors shall consider no factors in determining the |
4 | full and fair cash value of the real estate other than those that relate to that use without regard to |
5 | neighborhood land use of a more intensive nature; |
6 | (3) Warwick. The city council of the city of Warwick is authorized to provide, by |
7 | ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick |
8 | who makes any improvements or additions on his or her principal place of residence in the |
9 | amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the |
10 | city of Warwick, is exempt from reassessment of property taxes on the improvement or addition |
11 | until the next general citywide reevaluation of property values by the tax assessor. For the |
12 | purposes of this section, "residence" is defined as voting address. This exemption does not apply |
13 | to any commercial structure. The property owner shall supply all necessary plans to the building |
14 | official for the improvements or addition and shall pay all requisite building and other permitting |
15 | fees as now are required by law; and |
16 | (4) Central Falls. The city council of the city of Central Falls is authorized to provide, by |
17 | ordinance, that the owner of any dwelling of one to eight (8) units who makes any improvements |
18 | or additions to his or her residential or rental property in an amount not to exceed twenty-five |
19 | thousand dollars ($25,000), as determined by the tax assessor of the city of Central Falls, is |
20 | exempt from reassessment of property taxes on the improvement or addition until the next general |
21 | citywide reevaluation of property values by the tax assessor. The property owner shall supply all |
22 | necessary plans to the building official for the improvements or additions and shall pay all |
23 | requisite building and other permitting fees as are now required by law. |
24 | (5) Tangible property shall be assessed according to the asset classification table as |
25 | defined in § 44-5-12.1. |
26 | (6) Provided, however, that, for taxes levied after December 31, 2015, new construction |
27 | on development property is exempt from the assessment of taxes under this chapter at the full and |
28 | fair cash value of the improvements, as long as: |
29 | (i) An owner of development property files an affidavit claiming the exemption with the |
30 | local tax assessor by December 31 each year; and |
31 | (ii) The assessor shall then determine if the real property on which new construction is |
32 | located is development property. If the real property is development property, the assessor shall |
33 | exempt the new construction located on that development property from the collection of taxes on |
34 | improvements, until such time as the real property no longer qualifies as development property, |
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1 | as defined herein. |
2 | For the purposes of this section, "development property" means: (A) Real property on |
3 | which a single-family residential dwelling or residential condominium is situated and said single- |
4 | family residential dwelling or residential condominium unit is not occupied, has never been |
5 | occupied, is not under contract, and is on the market for sale; or (B) Improvements and/or |
6 | rehabilitation of single-family residential dwellings or residential condominiums that the owner |
7 | of such development property purchased out of a foreclosure sale, auction, or from a bank, and |
8 | which property is not occupied. Such property described in § 44-5-12(a)(6)(ii) shall continue to |
9 | be taxed at the assessed value at the time of purchase until such time as such property is sold or |
10 | occupied and no longer qualifies as development property. As to residential condominiums, this |
11 | exemption shall not affect taxes on the common areas and facilities as set forth in § 34-36-27. In |
12 | no circumstance shall such designation as development property extend beyond two (2) tax years |
13 | and a qualification as a development property shall only apply to property that applies for, or |
14 | receives, construction permits after July 1, 2015. Further, the exemptions set forth in this section |
15 | shall not apply to land. |
16 | The exemptions set forth in this subsection (a)(6) for development property shall expire |
17 | as of December 31, 2021. |
18 | (b) Municipalities shall make available to every land owner whose property is taxed |
19 | under the provisions of this section a document that may be signed before a notary public |
20 | containing language to the effect that they are aware of the additional taxes imposed by the |
21 | provisions of § 44-5-39 in the event that they use land classified as farm, forest, or open space |
22 | land for another purpose. |
23 | (c) Pursuant to the provisions of § 44-3-29.1, all wholesale and retail inventory subject to |
24 | taxation is assessed at its full and fair cash value, or at a uniform percentage of its value, not to |
25 | exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each town and city. |
26 | Once the fiscal year 1999 value of the inventory has been assessed, this value shall not increase. |
27 | The phase-out rate schedule established in § 44-3-29.1(d) applies to this fixed value in each year |
28 | of the phase out. |
29 | 44-5-13. Assessment and apportionment according to law -- Date of assessment. |
30 | The assessors shall assess all valuation and apportion any tax levy on the inhabitants of |
31 | the city or town and the ratable property in the city or town according to law, and the assessed |
32 | valuation of the ratable property is made as of the date of assessment provided in § 44-5-1 and |
33 | shall be in accordance with the provisions of § 44-5-12; except that personal property consisting |
34 | of stocks in trade and materials used in manufacture, which include raw materials, fuel, goods in |
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1 | process of manufacture, and completed products, except those which are specifically exempt by |
2 | statute, are estimated at the average of the personalty kept on hand or located in the taxing district |
3 | during the twelve (12) months ending with the date of assessment, or the average of any portion |
4 | of the twelve (12) months when the business has not been carried on or located in the taxing |
5 | district for a year. |
6 | 44-5-30. Judgment on petition where taxpayer has filed account. |
7 | If the taxpayer has given in an account, and if on the trial of the petition, either with or |
8 | without a jury, it appears that the taxpayer's real estate, tangible personal property, or intangible |
9 | personal property has been assessed, if assessment has been made at full and fair cash value, at a |
10 | value in excess of its full and fair cash value, or if assessment has purportedly been made at a |
11 | uniform percentage of full and fair cash value, at a percentage in excess of the uniform |
12 | percentage, in excess of the provisions of § 44-5-12 or if it appears that the tax assessed is illegal |
13 | in whole or in part, the court shall give judgment that the sum by which the taxpayer has been so |
14 | overtaxed, or illegally taxed, with his or her costs, be deducted from his or her tax; but if the |
15 | taxpayer's tax be paid, whether before or after the filing of the petition, then the court shall give |
16 | judgment for the petitioner for the sum by which he or she has been so overtaxed, or illegally |
17 | taxed, plus the amount of any penalty paid on the tax, with interest from the date on which the tax |
18 | and penalty were paid and costs, which judgment shall be paid to the petitioner by the city or |
19 | town treasurer out of the treasury. If, however, on the trial of the petition, it appears that the |
20 | taxpayer has fraudulently concealed or omitted any property from his or her account, or if it |
21 | appears that the assessors have not assessed either the taxpayer's real estate or his or her tangible |
22 | personal property or his or her intangible personal property at a value in excess of its full and fair |
23 | cash value, if assessment has been made at full and fair cash value, or if assessment has |
24 | purportedly been made at a uniform percentage of full and fair cash value, at a percentage in |
25 | excess of the uniform percentage the provisions of § 44-5-12, and that the taxpayer has not been |
26 | illegally taxed, the assessors shall have judgment and execution for their costs. |
27 | 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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1 | This act would authorize tax assessors in the cities and towns to use the last statutory |
2 | update or revaluation as the assessed valuation upon which to levy taxes regarding their real |
3 | property. |
4 | This act would take effect upon passage. |
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LC003580 | |
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