2020 -- H 7435 | |
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LC003786 | |
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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 - PROPERTY SUBJECT TO TAXATION | |
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Introduced By: Representatives Speakman, Knight, Donovan, and Cassar | |
Date Introduced: February 05, 2020 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 44-3-9 of the General Laws in Chapter 44-3 entitled "Property |
2 | Subject to Taxation" is hereby amended to read as follows: |
3 | 44-3-9. Exemption or stabilizing of taxes on property used for manufacturing, |
4 | commercial, or residential purposes. |
5 | (a)(1) Except as provided in this section, the electors of any city or town qualified to vote |
6 | on a proposition to appropriate money or impose a tax when legally assembled, may vote to |
7 | authorize the city or town council, for a period not exceeding twenty (20) years, and subject to the |
8 | conditions as provided in this section, to exempt from payment, in whole or in part, real and |
9 | personal property which has undergone environmental remediation, is historically preserved, or is |
10 | used for affordable housing, manufacturing, commercial, or residential purposes, or to determine |
11 | a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation |
12 | of the property or the rate of tax; provided, that after public hearings, at least ten (10) days' notice |
13 | of which shall be given in a newspaper having a general circulation in the city or town, the city or |
14 | town council determines that: |
15 | (i) Granting of the exemption or stabilization will inure to the benefit of the city or town |
16 | by reason of: |
17 | (A) The willingness of the manufacturing or commercial concern to locate in the city or |
18 | town, or of individuals to reside in such an area; or |
19 | (B) The willingness of a manufacturing firm to expand facilities with an increase in |
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1 | employment or the willingness of a commercial or manufacturing concern to retain or expand its |
2 | facility in the city or town and not substantially reduce its work force in the city or town; or |
3 | (C) An improvement of the physical plant of the city or town which will result in a long- |
4 | term economic benefit to the city or town and state; or |
5 | (D) An improvement which converts or makes available land or facility that would |
6 | otherwise be not developable or difficult to develop without substantial environmental |
7 | remediation; or |
8 | (ii) Granting of the exemption or stabilization of taxes will inure to the benefit of the city |
9 | or town by reason of the willingness of a manufacturing or commercial or residential firm or |
10 | property owner to construct new or to replace, reconstruct, convert, expand, retain or remodel |
11 | existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, |
12 | machinery, or equipment resulting in an increase or maintenance in plant, residential housing or |
13 | commercial building investment by the firm or property owned in the city or town; |
14 | (2) Provided that should the city or town council make the determination in subparagraph |
15 | (1)(i)(B) of this subsection, any exemption or stabilization may be granted as to new buildings, |
16 | fixtures, machinery, or equipment for new buildings, firms or expansions, and may be granted as |
17 | to existing buildings, fixtures, machinery and equipment for existing employers in the city or |
18 | town. |
19 | (b) Cities shall have the same authority as is granted to towns except that authority |
20 | granted to the qualified electors of a town and to town councils shall be exercised in the case of a |
21 | city by the city council. |
22 | (c) For purposes of this section, "property used for commercial purposes" means any |
23 | building or structures used essentially for offices or commercial enterprises. |
24 | (d) Except as provided in this section, property, the payment of taxes on which has been |
25 | so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during |
26 | the period for which the exemption or stabilization of the amount of taxes is granted, be further |
27 | liable to taxation by the city or town in which the property is located so long as the property is |
28 | used for the manufacturing or commercial, or residential purposes for which the exemption or |
29 | stabilized amount of taxes was made. |
30 | (e) Notwithstanding any vote of the qualified electors of a town and findings of a town |
31 | council or of any vote and findings by a city council, the property shall be assessed for and shall |
32 | pay that portion of the tax, if any, assessed by the city or town in which the real or personal |
33 | property is located, for the purpose of paying the indebtedness of the city or town and the |
34 | indebtedness of the state or any political subdivision of the state to the extent assessed upon or |
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1 | apportioned to the city or town, and the interest on the indebtedness, and for appropriation to any |
2 | sinking fund of the city or town, which portion of the tax shall be paid in full, and the taxes so |
3 | assessed and collected shall be kept in a separate account and used only for that purpose. |
4 | (f) Nothing in this section shall be deemed to permit the exemption or stabilization |
5 | provided in this section for any manufacturing or commercial concern relocating from one city or |
6 | town within the state of Rhode Island to another.; provided, however, that a manufacturing or |
7 | commercial concern may, upon a form prescribed by the commerce corporation, apply to the |
8 | commerce corporation, in conjunction with the municipality in which it seeks to relocate, for a |
9 | determination that: |
10 | (1) The manufacturing or commercial concern could reasonably and efficiently relocate |
11 | outside the state of Rhode Island; and |
12 | (2) Relocating outside the state of Rhode island would be economically advantageous and |
13 | beneficial to the company. |
14 | The application shall include a copy of any proposed agreement with the municipality to |
15 | which it seeks to relocate and a statement outlining the benefits the company could receive if it |
16 | were to relocate outside the state of Rhode Island. If the commerce corporation, upon review of |
17 | the application finds that the manufacturing or commercial concern would benefit from relocating |
18 | outside the state of Rhode Island, it may permit the exemption or stabilization of taxes in another |
19 | municipality within this state. |
20 | (g) Renewable energy resources, as defined in § 39-26-5, qualify for tax stabilization |
21 | agreements pursuant to § 44-3-9(a). |
22 | 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 - PROPERTY SUBJECT TO TAXATION | |
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1 | This act would permit a manufacturing or commercial concern located in this state to |
2 | apply to the commerce corporation, for an exemption or stabilization of taxes, when moving to |
3 | another municipality within this state if it can show that it could reasonably and efficiently |
4 | relocate outside the state and that such relocation would be economically advantageous. |
5 | This act would take effect upon passage. |
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