2020 -- H 7462

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LC003214

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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 -- APPELLATE TAX BOARD

     Introduced By: Representatives Shanley, Craven, Casimiro, Kazarian, and Mendez

     Date Introduced: February 06, 2020

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

adding thereto the following chapter:

CHAPTER 2.1

APPELLATE TAX BOARD

     44-2.1-1. Establishment.

     There is hereby created in the department of revenue, not subject to its control in the

conduct of its adjudicatory functions, an appellate tax board.

     44-2.1-2. Members of board.

     (a) The board shall consist of five (5) members, appointed by the governor, with the

advice and consent of the senate. No more than three (3) members shall be members of the same

political party.

     (b) The members shall be appointed for six (6) year terms from March 1 in the year of

appointment. The governor, with the advice and consent of the senate, shall designate one of the

members as chair of the board. Upon the expiration of the term of office as a member, a successor

shall be appointed for a term of six (6) yeas in the manner provided in this section.

     (c)(1) The chair shall receive as compensation fifty percent (50%) of the salary received

by the presiding justice of the superior court, and each other member of the board shall receive as

compensation fifty percent (50%) of the salary received by an associate justice of the superior

court.

     (2) Members shall devote their full time during business hours to the duties of their

offices and the work of the board. No member of the board, while a member, shall act as attorney,

counselor or accountant in any contested matter before the department of revenue, before any

board of assessors, before the courts of the state or the federal courts.

     (d) A member may be removed by the senate, upon request of the governor and upon

notice and hearing, for neglect of duty, inability to perform duties, malfeasance in office, or for

other good cause.

     (e)(1) Members shall be subject to an annual written performance evaluation to be

completed by the chair. The members shall be evaluated upon:

     (i) Efficiency and fairness in the conduct of hearings;

     (ii) Promptness in issuing decisions in single member and small claims cases;

     (iii) The ability to coordinate, oversee, draft and otherwise contribute to the expeditious

issuance of written findings of fact and reports with the assistance of the legal department in cases

assigned to the member;

     (iv) The total number of proceedings of comparable matters handled and orders and

decisions issued in those matters;

     (v) Contributions to the management and reduction of the board's caseload;

     (vi) Any written complaints or commendations received and verified;

     (vii) Compliance with this chapter and other applicable chapters of the general laws; and

     (viii) Other information that may be relevant.

     The chair shall take into consideration the complexity of cases in making this evaluation.

Such performance evaluation may be used as evidence of a member's inability to perform their

duties.

     (2) The chair shall be subject to an annual written performance evaluation to be

completed by the governor's chief legal counsel that includes evaluation of the management of

the board's caseload, the ability to manage effectively the daily operations of the board and the

personnel of the board, and the evaluation criteria applicable to members of the board, as

appropriate. Such performance evaluation may be used by the governor as evidence of a chair's

inability to perform their duties.

     (f) A vacancy in the board shall not impair its powers nor affect its duties. The board

shall have a seal that shall be judicially noticed.

     44-2.1-3. Appointment of employees.

     (a) Subject to appropriation, the chair shall appoint five (5) attorneys and may appoint

such other employees, including clerks, and make such other expenditures including computer

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training, as the chair deems necessary in order to execute efficiently the functions vested in said

board.

     (b) Any clerk or assistant clerk employed by the board shall hold office during good

behavior, subject, however, to retirement under the provisions of any applicable general or special

law relative to retirement systems. A clerk or assistant clerk may be removed by the chair, upon

notice and hearing, for neglect of duty, inability to perform duties, or malfeasance in office, but

for no other cause.

     (c) All expenditures of the board shall be allowed and paid out of monies appropriated for

the purpose of the board, upon presentation of itemized vouchers therefor, signed by the chair or a

person designated by the board for that purpose.

     44-2.1-4. Jurisdiction.

     (a) The board shall have jurisdiction to decide appeals relating to valuation, assessment

and taxation of real and tangible property of individuals and corporations, veterans, property

exemptions, local valuation, assessment and taxation of real and tangible property of individuals

and corporations, motor vehicles, refusal of tax abatements, financial institutions, addition of

valuation based on renovations, refunds and any other provision of law relating to taxation.

     (b) Except as otherwise provided by law, no appeal to the board shall stay the collection

of any tax or excise.

     (c) Whenever a board of assessors, before whom an application in writing for the

abatement of a tax is pending, fails to act upon an application, except with the written consent of

the applicant, prior to the expiration of three (3) months from the date of filing of such

application, it shall then be deemed to be denied, and the taxpayer shall have the right, at any time

within three (3) months thereafter, to take any appeal from the denial to which they may be

entitled by law, in the same manner as though the board of assessors had in fact refused to grant

the abatement applied for. After the expiration of said three (3) months from the date of filing

such application, the board of assessors shall have no further authority to act upon the application;

provided, however, that during the period allowed for the taking of an appeal, including instances

where the application for abatement has been denied, the assessors may, by agreement with the

applicant, abate the tax in whole or in part in final settlement of said application, and shall also

have the authority granted to them by § 44-2.1-6 to abate, in whole or in part, any tax as to which

an appeal has been seasonably taken.

     (d) Whenever the tax administrator, before whom an application in writing for the

abatement of tax is or shall be pending, fails to act upon the application prior to the expiration of

six (6) months from the date of filing of the same, it shall then be deemed to be denied unless the

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applicant shall have filed with the administrator, prior to such expiration, their written consent to

the failure of the administrator to act on the application within the six (6) month period. Consent

may be withdrawn by the applicant at any time, in which event said application, unless previously

acted on by the administrator, shall be deemed to be denied at the expiration of said six (6)

months period or on the date of such withdrawal, whichever is later. The applicant, at any time

within six (6) months from the date on which any such application shall be so deemed to be

denied by the administrator, shall have the right to take any appeal from such denial to which he

or she may be entitled by law in the same manner as though the administrator had in fact refused

to grant the abatement applied for. The administrator shall have authority to act on any

application after the date of any denial if the applicant has not seasonably taken an appeal from

such denial. During the period allowed for the taking of an appeal, the administrator may, by

agreement with the applicant, abate the tax in whole or in part in final settlement of said

application.

     44-2.1-5. Quorum.

     (a) The majority of the members of the board shall constitute a quorum for the transaction

of its business.

     (b) A single member of the board may decide the following types of cases:

     (1) Cases on appeal from a board of assessors where the assessed value of the property

involved does not exceed five hundred thousand dollars ($500,000);

     (2) Cases on appeal from a board of assessors where the assessed value exceeds five

hundred thousand dollars ($500,000), but does not exceed seven hundred fifty thousand dollars

($750,000) when the appellant and appellee gives written consent to a decision by a single

member;

     (3) Cases heard under the informal procedure in which the assessed value is less than one

million dollars ($1,000,000) as provided in § 44-2.1-7 or the small claims procedure as provided

in § 44-2.1-8. In any such appeal, upon request and upon the filing of such written consent, the

appeal shall be advanced for speedy hearing.

     (c) The decision shall be signed by the single member of the board who presided at the

hearing, and such case shall be attributed to said single member for tracking and evaluation

purposes.

     44-2.1-6. Appellate procedure.

     (a) Any party taking an appeal to the board, hereinafter called (the "appellant"), from a

decision or determination of the administrator or of a board of assessors, hereinafter referred to as

the "appellee", shall file a petition with the clerk of the appellate tax board and serve upon said

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appellee a copy thereof in the manner provided in subsection (c) of this section. No petition shall

relate to an assessment on more than one parcel of real estate, except where the board shall

specifically permit otherwise.

     (b)(1) Upon an appeal, the petition shall set forth specifically the facts upon which the

appellant, relies, together with a statement of the contentions of law which the appellant desires to

raise. The appellant shall state upon the petition the address at which service of any pleading,

motion, order, notice or process in connection with the appeal can be made upon them.

     (2) Within such time as the board by its rules may prescribe, the appellee shall file with

the board an answer denying or admitting each and every allegation of fact contained in the

petition; except that, if the appellee desires to raise no issue other than the question whether there

has been an overvaluation or improper classification of the property on which the tax appealed

from was assessed, no answer need be filed. If no answer is filed in such a case, the allegation of

overvaluation or improper classification of such property shall be held to be denied and all other

material facts alleged in the petition admitted. If an answer is filed, a copy shall be served upon

the appellant, in the manner provided in subsection (c) of this section.

     (3) The appellant, at the time of filing the petition shall pay to the clerk an entry fee for

each appeal from a decision of the administrator, or, in the case of an appeal from a decision of a

board of assessors, an entry fee where the assessed fair cash valuation of the real property, or

personal property, or both, the tax on which is sought to be abated, is fifty thousand dollars

($50,000) or less; or an entry fee where such assessed fair cash valuation is in excess of fifty

thousand dollars ($50,000). The administrator shall annually determine the amounts of such entry

fees.

     (4) The board shall not consider, unless equity and good conscience so require, any issue

of fact or contention of law not specifically set out in the petition upon appeal or raised in the

answer. At any time before the decision upon the appeal by the board or by the appeals court

under § 44-2.1-14, the appellee may abate the tax appealed from, in whole or in part, or change its

determination.

     (c) If any petition, including any petition, statement or appeal filed under this section or

§§ 44-2.1-7 and 44-2.1-8, is, after the period allowed for filing appeals with the board, delivered

by United States mail, or by such alternative private delivery service as the board may by rule

permit, to the board, the date of the United States postmark, or other substantiating mark

permitted by rule of the board, affixed on the envelope or other appropriate wrapper in which

such petition is mailed or delivered shall be deemed to be the date of delivery, if such petition

was mailed in the United States in an envelope or other appropriate wrapper, first class postage

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prepaid, or delivered to such alternative private delivery service, properly addressed to the board.

As used in this section, ''United States postmark'' shall mean only a postmark made by the United

States post office.

     (d) In the case of an appeal relating to property classified as either residential greater than

eight (8) units, or commercial or industrial, and which is assessed for more than two hundred

thousand dollars ($200,000) in the previous fiscal year, upon the written request of the appellee,

the appellant shall file with the board an income and expense statement for the most recent year

preceding the valuation date at issue in the appeal, completed under oath, within forty (40) days

of such request.

     44-2.1-7. Informal procedure.

     (a) The board shall establish by rule an alternative procedure, hereinafter referred to as

the "informal procedure", for the determination of petitions for abatement of any tax upon real

estate or tangible personal property, where such procedure is elected by both parties, except as

hereinafter provided. This procedure, to the extent that the board may consider practicable, shall

eliminate formal rules of pleading, practice and evidence, and, except for the entry fee herein

provided, may eliminate any or all fees and costs, or may provide that costs shall be in the

discretion of the board.

     (b)(1) An appellant desiring to be heard under the informal procedure shall pay to the

clerk the entry fee provided in § 44-2.1-6, except as otherwise herein provided, and shall file:

     (i) A written waiver of the right to appeal to the appeals court or the supreme court,

except upon questions of law raised by the pleadings or by an agreed statement of facts or shown

by the report of the board;

     (ii) An election of the informal procedure;

     (iii) A written statement of the facts in the case; and

     (iv) The amount claimed in abatement, together with such additional information as the

clerk may require, hereinafter collectively referred to as the "pleadings".

     (2) The minimum entry fee shall be determined annually by the administrator, if the

assessed fair cash valuation of the property on which the tax appealed from was assessed does not

exceed twenty thousand dollars ($20,000) and such property is occupied in whole or in part by

the appellant as his or her dwelling, contains no more than three (3) units designed for dwelling

purposes and is in no part used for any other purposes, or if the assessed valuation of the property

on which the tax appealed from was assessed does not exceed five thousand dollars ($5,000) and

such property is tangible personal property.

     (c)(1) The pleadings may be made on forms to be supplied by the board and, if the

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appellant so requests and the assessed fair cash valuation of the property concerned does not

exceed twenty thousand dollars ($20,000), shall be made out for the appellant by the clerk or an

employee of the board designated by the board. The clerk shall then serve a copy of such

pleadings upon the appellee. No further pleadings shall be required under this procedure if the

appellee intends to offer no other defense than that the property was not overvalued or that the

property was not improperly classified; otherwise, it shall file with the board within thirty (30)

days of the service of such pleadings an answer similar to that required under the procedure

provided by § 44-2.1-6, hereinafter referred to as the "formal procedure".

     (2) If the assessed fair cash valuation of the property concerned exceeds twenty thousand

dollars ($20,000), the appellee, within thirty (30) days of the date of service of such pleadings,

may elect to have the appeal heard under the formal procedure by so notifying the clerk in writing

and by paying the clerk a transfer fee to be determined annually by the board, in which case the

said statement shall be considered to be a petition and such service to be service of the petition

and the waiver of the right of appeal by the appellant shall be void. If the appellee does not so

transfer the case, the informal procedure shall be deemed to have been accepted and all right of

appeal waived by the appellee, except upon questions of law raised by the pleadings or by an

agreed statement of facts or shown by the report of the board.

     (3) No statement under the informal procedure shall relate to an assessment on more than

one parcel of real estate, except where the board shall specifically permit otherwise. The chair

shall provide for the speedy hearing of all appeals to be heard under the informal procedure. The

chair shall make every effort to reduce the expense of hearing cases filed under the informal

procedure by directing whenever possible that petitions for abatement of taxes assessed upon real

estate situated in the same general locality of the same town be heard together, irrespective of the

identity of the appellants.

     44-2.1-8. Small claims procedure.

     (a) The board shall establish by rule a further alternative procedure, hereinafter referred

to as the "small claims procedure", for the determination of petitions for abatement of any tax or

excise. Unless the appellant affirmatively requests that the case be heard under the formal

procedure provided in § 44-2.1-6, the small claims procedure shall govern any case in which the

amount of tax placed in dispute by the petition does not exceed:

     (1) Twenty-five thousand dollars ($25,000) for any taxable year, in the case of a tax

imposed by taxable year;

     (2) Twenty-five thousand dollars ($25,000) for any calendar year, in the case of a tax

imposed by calendar year; or

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     (3) Twenty-five thousand dollars ($25,000) for any taxable event or transaction in the

case of any other tax.

     For purposes of this section, the amount of any tax or excise placed in dispute does not

include any interest, penalty, or addition to tax. If, however, only the assessment or the amount of

interest and/or penalties is in dispute, said interest and penalties shall not exceed twenty-five

thousand dollars ($25,000).

     (b) Proceedings under the small claims procedure shall be conducted as informally as

possible in accordance with such rules of evidence, practice, and procedure as the board may

prescribe. To the extent that the board may consider practicable, the small claims procedure shall

eliminate formal rules of pleading, practice, and evidence, and except for the entry fee herein

provided, may eliminate any or all fees and costs, or may provide that costs shall be in the

discretion of the board. The chair shall provide for the speedy hearing of all appeals to be heard

under the small claims procedure.

     (c) An appellant filing an appeal under the small claims procedure shall pay the clerk an

entry fee as determined annually and shall file a written statement of the facts of the case and of

the amount claimed in abatement together with any additional information as the clerk may

require. The appellant shall also file a written waiver of the right to appeal to any court. Within

five (5) business days after receipt of the petition, the clerk shall notify the parties to confirm the

scheduling of the appeal and serve a copy of the small claims procedure petition and

accompanying information upon the tax administrator. Within twenty-five (25) business days

after the service of the statement or at another time as the board may order, the tax administrator

shall file with the board an answer similar to that required under the formal procedure provided

by § 44-2.1-6.

     (d) Any case in which the appellant has filed an appeal under the small claims procedure,

as provided in subsections (a) and (c) of this section, shall be designated and docketed as a small

claims case. With the concurrence of the board, the proceedings therein shall be conducted as a

small claims case in accordance with this section.

     (e) At any time before the commencement of the hearing, the board on its own motion or

on the motion of a party to the appeal may order that the small claims designation be removed

and that the proceedings be transferred to the formal procedure under § 44-2.1-6. In addition, at

any time before a decision is entered, the board shall discontinue further proceedings under this

section if it finds:

     (1) That there are reasonable grounds for believing that the amount of tax placed in

dispute exceeds the applicable jurisdictional amount as described in subsection (a) of this section;

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and

     (2) That the amount of the excess is large enough to justify granting the request.

     The tax administrator may also request that a matter be removed from the small claims

procedure if:

     (i) There is a recurring issue of law and the impact of the issue on similarly situated

taxpayers carries an aggregate value of over two hundred fifty dollars ($250,000); or

     (ii) The board determines that the issue to be addressed is not suitable for small claims

resolution due to its complexity, unique nature or other compelling reason as determined by the

board in good faith.

     Upon removal or discontinuance, proceedings in the case shall be transferred to the

formal docket and conducted under the formal procedure provided by § 44-2.1-6. The date on

which the board received the appellant's initial petition shall be considered the date of filing for

the subsequent appeal under the formal procedure. The board shall allow sufficient time for the

parties to modify their small claims submissions as needed to comply with the documentary

requirements of the formal procedure and the waiver of the right of appeal shall be void. If the

small claims designation is not removed and proceedings under this section are not discontinued,

the small claims procedure shall be deemed to have been accepted and all right of appeal waived

by both parties.

     (f) The board shall make a decision in each case heard by it under the small claims

procedure, giving a brief written summary of the reasons therefor. No decision shall grant an

abatement of tax exceeding the amount of tax placed in dispute within the limits prescribed in

subsection (a) of this section. Where the amount of tax which the tax administrator has refused to

abate exceeds the limits imposed by subsection (a) of this section, the appellant may nevertheless

elect the small claims procedure; provided, however, that such election shall, unless the small

claims procedure is discontinued pursuant to subsection (e) of this section, foreclose all rights to

an abatement of any amount of tax in excess of such limits and all interest, penalties, or additions

to tax imposed related to such excess.

     (g) A decision entered in any case in which the proceedings are conducted under this

section shall not be reviewed in any court and shall not be treated as precedent for any other case.

     44-2.1-9. Hearings.

     A hearing shall be granted if any party to an appeal so requests, and upon motion of any

party to an appeal, or by direction of the board. Hearings may be held before less than a majority

of the members of the board and the chair may assign members to hold hearings. Hearings before

the board, or any member thereof, shall be open to the public and such hearings and all

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proceedings shall be conducted in accordance with such rules of practice and procedure as the

board may make and promulgate. The chair may direct that two (2) or more petitions for

abatement of the taxes assessed upon real estate situated in the same general locality of the same

town be heard together, irrespective of the identity of the appellants.

     44-2.1-10. Discovery procedure.

     (a) Before the hearing of a petition for the abatement of a tax upon real estate, machinery

or other tangible property, the appellant shall permit the appellee personally or by attorneys,

experts or other agents, to enter upon such real estate or upon any premises where such personal

property is situated and examine and inspect such real estate or personal property, including any

property which the appellant claims is exempt from taxation. In case of doubt or uncertainty as to

the identity of the property, the appellant shall point out to the appellee the property to which the

appeal relates. In the event the appellant refuses to permit the appellee to inspect said property,

the board may dismiss the appeal.

     (b) At least thirty (30) days prior to the hearing of a petition for the abatement of a tax,

upon a motion filed by either party and granted by the board, or by direction of the board, the

appellant and appellee shall exchange appraisal reports concerning the property.

     (c) In any pending appeal where jurisdiction is established, the board, with the consent of

all parties, may in its discretion employ alternative dispute resolution techniques including,

without limitation, mediation and arbitration. Said alternative dispute resolution techniques shall

be conducted upon such terms and conditions as are established by the parties with the approval

of the board.

     44-2.1-11. Recording of proceedings -- Waiver of appeal.

     (a) At the request of any party made before any evidence is offered, or by direction of the

board, the board shall order that all proceedings in a pending appeal be officially recorded. The

board shall employ transcription methods including, without limitation, electronic transcription

equipment, for the purpose of recording or reporting proceedings before the board. The board

may contract for the recording of such proceedings at the expense of the state in the first instance,

but shall collect the cost thereof from the persons requesting that the proceedings be recorded. In

such contract the board may provide that one or more copies of the transcript be supplied to the

board without cost to the state, and may fix the terms and conditions upon which transcripts will

be supplied to other persons and agencies by the official recorder. No proceedings shall be

recorded or transcribed officially until an amount equal to the cost thereof, as estimated by the

clerk, shall have been deposited with him or her at such times and in such manner as may be

provided by the rules of the board. Any excess deposit over the actual cost shall be returned to the

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depositor by the clerk.

     (b) If no party requests that the proceedings be recorded, all parties shall be deemed to

have waived all rights of appeal to the superior court or the supreme court upon questions as to

the admission or exclusion of evidence, or as to whether a finding was warranted by the evidence.

The right of appeal upon questions of law raised by the pleadings or by an agreed statement of

facts or shown by the report of the board shall not be deemed to be waived. For its own

information only, the board may, subject to appropriation, have stenographic notes of hearings

taken and may have transcripts thereof prepared in proceedings which are not officially recorded

at the request of a party.

     44-2.1-12. Power to administer oaths and summon witnesses and documents.

     (a) Any member of the board, or any employee of the board designated in writing for the

purpose by the chair, may administer oaths, and any member of the board may summon and

examine witnesses and require, by subpoena signed by the member, the production of all returns,

books, papers, documents, correspondence and other evidence, pertinent to the matter under

inquiry, and may require the taking of a deposition before any person competent to administer

oaths, either within or without the state. In the case of a deposition, the testimony shall be reduced

to writing by the person taking the deposition or under their direction and shall then be subscribed

by the deponent.

     (b) Either party may summon witnesses or may require the production of papers in the

same manner in which witnesses may be summoned and papers may be required to be produced

for the purpose of trials in the superior court. Any witness summoned or whose deposition is

taken shall receive the same fees and mileage as witnesses in said court.

     44-2.1-13. Taxation of appeal costs.

     (a) Witness fees and expenses of service of process may be taxed as costs against the

unsuccessful party to the appeal, in the discretion of the board.

     (b) In the event that the state, or any official thereof, is the unsuccessful party to an

appeal, the costs shall be paid from the state treasury upon certificate of a member of the board in

such form as the board may prescribe by regulation.

     (c) In the event that a subdivision of the state, or any official thereof, is the unsuccessful

party to an appeal, the costs shall be paid from the treasury of such subdivision by the treasurer

thereof upon the certificate of a member of the board in such form as the board may prescribe by

regulation.

     (d) In the event that costs are taxed against an unsuccessful taxpayer, a member of the

board shall certify the amount of the same and the costs may be recovered in an action of contract

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by the state treasurer in the case of a tax assessed by the tax administrator, or by the treasurer of

the subdivision of the state in the case of a tax assessed by the subdivision.

     44-2.1-14. Decisions of the board.

     (a) The board, or a single member of the board acting pursuant to the authority outlined

in § 44-2.1-5, shall make a decision in each appeal heard by it within three (3) months from the

close of the record including submission of briefs and may make findings of fact and report

thereon in writing. In any appeal in which the hearing is officially recorded pursuant to § 44-2.1-

11, or in any appeal from the tax administrator of revenue other than cases heard under the small

claims procedure pursuant to § 44-2.1-8, the member may take an additional three (3) months to

issue a decision. In every decision granting an abatement without findings of fact and report

which relates to a tax on land with one or more buildings thereon, the board shall, if so requested

by the appellee in writing at the commencement of the hearing, state separately the value of the

land and of each building.

     (b) Except in cases heard under the informal procedure authorized by § 44-2.1-7, or under

the small claims procedure authorized § 44-2.1-8, the board shall make such findings and report

thereon if so requested by either party within ten (10) days of a decision without findings of fact

and shall issue said findings within three (3) months of the request; provided, however, the board,

in its discretion, may extend the time for issuing said findings and report for an additional period

not to exceed three (3) months, upon written notice to both parties setting forth the reason for the

extension. In extraordinary circumstances or with consent of all parties to the proceeding, the

board may have whatever additional time is necessary for issuance of such findings of fact and

report. Such report may, in the discretion of the board, contain an opinion in writing, in addition

to the findings of fact and decision. If no party requests such findings and report, all parties shall

be deemed to have waived all rights of appeal to the appeals court upon questions as to the

admission or exclusion of evidence, or as to whether a finding was warranted by the evidence. All

reports, findings and opinions of the board and all evidence received by the board, including a

transcript of any official report of the proceedings, all pleadings, briefs and other documents filed

by the parties, shall be open to the inspection of the public; except that the originals of books,

documents, records, models, diagrams and other exhibits introduced in evidence before the board

may be withdrawn from the custody of the board in such manner and upon such terms as the

board may in its discretion prescribe. The decision of the board shall be final as to findings of

fact. Failure to comply with the time limits of this section, shall not affect the validity of the

board's decision.

     (c) From any final decision of the board, an appeal as to matters of law may be taken to

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the superior court by either party to the proceedings before the board so long as that party has not

waived such right of appeal. A claim of appeal shall be filed with the clerk of the board in

accordance with the Rhode Island rules of appellate procedure which rules shall govern such

appeal. The court shall not consider any issue of law which does not appear to have been raised in

the proceedings before the board.

     (d) If the order grants an abatement of a tax assessed by the tax administrator at the rate

of six percent (6%) per annum, and the tax has been paid, the amount abated with interest

computed, and if costs are ordered against the administrator, the amount thereof, shall be paid to

the taxpayer by the state treasurer. If the order grants an abatement of a tax assessed by the board

of assessors of a town and the tax has been paid, the amount abated with interest at the rate of six

percent (6%) per annum from the time when the tax was paid, and if costs are ordered against a

board of assessors, the amount thereof, shall be paid to the taxpayer by the town treasurer, and, if

unpaid, execution therefor may issue against the town as in actions at law. If costs are ordered

against a taxpayer execution shall issue therefor.

     (e) The appeal to the superior court under this section shall be the exclusive method of

reviewing any action of the board. For want of prosecution of a superior court appeal in

accordance with the provisions of this section, the board, or, if the appeal has been entered in the

superior court, a justice of the court, may dismiss the appeal. Upon dismissal of an appeal, the

decision of the board shall thereupon have full force and effect.

     44-2.1-15. Reports and opinions.

     The board shall provide for the publication and distribution of its reports and opinions in

such form and manner as it may deem best adapted for public convenience and use.

     44-2.1-16. Annual reports.

     The board shall report annually to the general assembly any suggestions and

recommendations for the amendment, alteration and modification of existing laws relative to

taxation and related matters, as it may deem desirable, and shall include in its report a statement

of the number and type of matters handled by it during the preceding state fiscal year and the

number of matters pending at the end of the year. Such report shall further provide the aggregate

number and type of cases assigned to each member, the manner by which the case was disposed

of and the average length of time for issuing a decision from the date of the close of the record.

     SECTION 2. 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. Statewide tax rate structures.

     (a) Commencing on December 31, 2021, uniform tax rates shall be implemented for all

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classes of residential and commercial real property, tangible personal property, vacant land, farm

land, forest land and open spaces located within the cities and towns.

     (b) The uniform tax rates shall be established by the tax administrator based on the

amount of the various categories subject to levy within a municipality with apartment buildings

classified as residential property and the tax rate shall be based on their actual use.

     (c) The commercial tax rate shall be capped at one hundred fifty percent (150%) of the

residential tax rate. Any municipality electing to increase the commercial tax set by the

administrator or imposed by the cap shall hold local hearings on the increase and obtain council

and general assembly approval until the increase shall take effect.

     (d) The vacant land tax rate shall be at a rate no less than seventy-five percent (75%) of

the residential tax rate. Any municipality electing to increase the vacant land tax rate set by the

administrator shall hold local hearings on the increase and obtain council and general assembly

approval until the increase shall take effect.

     (e) All municipalities shall conduct an excess land analysis to merge or eliminate

undersized lots from the tax base.

     (f) The tax administrator shall promulgate rules and regulations regarding the

implementation of the provisions of this section.

     SECTION 3. Sections 44-5-11.6 and 44-5-26 of the General Laws in Chapter 44-5

entitled "Levy and Assessment of Local Taxes" are hereby amended to read as follows:

     44-5-11.6. Assessment of valuations -- Apportionment of levies.

     (a) Notwithstanding the provisions of § 44-5-11 [repealed], beginning on December 31,

2000, the assessors in the several towns and cities shall conduct an update as defined in this

section or shall assess all valuations and apportion the levy of all taxes legally ordered under the

rules and regulations, not repugnant to law, as the town meetings and city councils, respectively,

shall, from time to time, prescribe; provided, that the update or valuation is performed in

accordance with the following schedules:

     (1)(i) For a transition period, for cities and towns that conducted or implemented a

revaluation as of 1993 or in years later:

Update Revaluation

Lincoln 2000 2003

South Kingstown 2000 2003

Smithfield 2000 2003

West Warwick 2000 2003

Johnston 2000 2003

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Burrillville 2000 2003

North Smithfield 2000 2003

Central Falls 2000 2003

North Kingstown 2000 2003

Jamestown 2000 2003

North Providence 2001 2004

Cumberland 2001 2004

Bristol 2004 2001

Charlestown 2001 2004

East Greenwich 2002 2005

Cranston 2002 2005

Barrington 2002 2005

Warwick 2003 2006

Warren 2003 2006

East Providence 2003 2006

     (ii) Provided that the reevaluation period for the town of New Shoreham shall be

extended to 2003 and the update for the town of Hopkinton may be extended to 2007 with no

additional reimbursements by the state relating to the delay.

     (iii) The implementation date for this schedule is December 31st, of the stated year.

     (iv) Those cities and towns not listed in this schedule shall continue the revaluation

schedule pursuant to § 44-5-11 [repealed].

     (2)(i) For the post transition period and in years thereafter:

Update #1 Update #2 Revaluation

Woonsocket 2002 2005 2008

Pawtucket 2002 2005 2008

Portsmouth 2001 2004 2007

Coventry 2001 2004 2007

Providence 2003 2006 2009

Foster 2002 2005 2008

Middletown 2002 2005 2008

Little Compton 2003 2006 2009

Scituate 2003 2006 2009

Westerly 2003 2006 2009

West Greenwich 2004 2007 2010

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Glocester 2004 2007 2010

Richmond 2004 2007 2010

Bristol 2004 2007 2010

Tiverton 2005 2008 2011

Newport 2005 2008 2011

New Shoreham 2006 2009 2012

Narragansett 2005 2008 2011

Exeter 2005 2008 2011

Hopkinton 2007 2010 2013

Lincoln 2006 2009 2012

South Kingstown 2006 2009 2012

Smithfield 2006 2009 2012

West Warwick 2006 2009 2012

Johnston 2006 2009 2012

Burrillville 2006 2009 2012

North Smithfield 2006 2009 2012

Central Falls 2006 2009 2012

North Kingstown 2006 2009 2012

Jamestown 2006 2009 2012

North Providence 2007 2010 2013

Cumberland 2007 2010 2013

Charlestown 2007 2010 2013

East Greenwich 2008 2011 2014

Cranston 2008 2011 2014

Barrington 2008 2010 2014

Warwick 2009 2012 2015

Warren 2009 2012 2016

East Providence 2009 2012 2015

     (ii) The implementation date for the schedule is December 31st of the stated year. Upon

the completion of the update and revaluation according to this schedule, each city and town shall

conduct a revaluation within nine (9) years of the date of the prior revaluation and shall conduct

an update of real property every three (3) years from the last revaluation. Provided, that for the

town of Bristol, the time for the first statistical update following the 2010 revaluation shall be

extended from 2013 to 2014 and said statistical update shall be based on valuations as of

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December 31, 2014, and the first revaluation following the December 31, 2014 and 2015

statistical revaluation shall be extended from 2016 to 2019 and said revaluation shall be based on

valuations as of December 31, 2018.

     (3)(i) Commencing with December 31, 2020, or upon completion of the update and

revaluation pursuant to the provisions of subsection (a)(2)(ii) of this section; however, no later

than December 31, 2022, cities and towns shall implement a five (5) year certification of their

assess values of real property.

     (ii) The certification process shall consist of the following:

     (A) Send an annual notice of assessed value to all taxpayers by April 15;

     (B) Appeal of the notice of assessed value to the assessor by the taxpayer on or before

May 15;

     (C) Response to the appeal by the assessor within thirty (30) days of receipt;

     (D) Appeal of the assessor's response either to the local tax board of review or to the

appellate tax board pursuant to the provisions of chapter 2.1 of this title;

     (E) Conduct an inspection of twenty percent (20%) of the real property every year; and

     (F) Inspect and validate any real property sale occurring in any year if the sale price

exceeds thirty percent (30%) of the current value on record.

     (iii)(A) Once a municipality achieves full certification of its tax base pursuant to the five

(5) year implementation, the municipality shall document to the division of property valuation in

the department of revenue that the values are at one hundred percent (100%) of market value and

submit all its supporting data.

     (B) In the event that the division of property valuation deems the tax base values are not

at market value, the certification process shall be suspended with assessment value and tax

revenue frozen until the required adjustments are completed.

     (b) No later than February 1, 1998, the director of the department of revenue shall

promulgate rules and regulations consistent with the provisions of this section to define the

requirements for the updates that shall include, but not be limited to:

     (1) An analysis of sales;

     (2) A rebuilding of land value tables;

     (3) A rebuilding of cost tables of all improvement items; and

     (4) A rebuilding of depreciation schedules. Upon completion of an update, each city or

town shall provide for a hearing and/or appeal process for any aggrieved person to address any

issue that arose during the update.

     (c) The costs incurred by the towns and cities for the first update shall be borne by the

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state in an amount not to exceed twenty dollars ($20.00) per parcel. The costs incurred by the

towns and cities for the second update shall be borne eighty percent (80%) by the state (in an

amount not to exceed sixteen dollars ($16.00) per parcel) and twenty percent (20%) by the town

or city, and in the third update and thereafter, the state shall pay sixty percent (60%) of the update

(not to exceed twelve dollars ($12.00) per parcel) and the town or city shall pay forty percent

(40%); provided, that for the second update and in all updates thereafter, that the costs incurred

by any city or town that is determined to be a distressed community pursuant to § 45-13-12 shall

be borne eighty percent (80%) by the state and twenty percent (20%) by the city or town for all

updates required by this section.

     (d) The office of municipal affairs, after consultation with the League of Cities and

Towns and the Rhode Island Assessors' Association, shall recommend adjustments to the costs

formula described in subsection (c) of this section based upon existing market conditions.

     (e) Any property that is either exempt from the local property tax pursuant to § 44-3-3 or

pays a city or town an amount in lieu of taxes is not required to have its values updated pursuant

to this section and the property is not eligible for the reimbursement provisions of subsection (c)

of this section. However, those properties that are exempt from taxation and are eligible for state

appropriations in lieu of property tax under the provisions of § 45-13-5.1 are eligible for state

reimbursement pursuant to subsection (c) of this section, provided, that these properties were

revalued as part of that city or town's most recent property revaluation.

     (f) No city or town is required to conduct an update pursuant to this section unless the

state has appropriated sufficient funds to cover the state's costs as identified in subsection (c) of

this section.

     (g) Any city or town that fails to conduct an update or revaluation as required by this

section, or requests and receives an extension of the dates specified in this section, shall receive

the same amount of state aid under §§ 45-13-1, 45-13-5.1, and 45-13-12 in the budget year for

which the new values were to apply as the city or town received in-state aid in the previous

budget year; provided, however, if the new year's entitlement is lower than the prior year's

entitlement, the lower amount applies, except for the town of New Shoreham for the fiscal year

2003.

     (h) Any bill or resolution to extend the dates for a city or town to conduct an update or

revaluation must be approved by a two-thirds (2/3) majority of both houses of the general

assembly.

     44-5-26. Petition in superior court for relief from assessment.

     (a) Any person aggrieved on any ground whatsoever by any assessment of taxes against

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him or her in any city or town, or any tenant or group of tenants, of real estate paying rent

therefrom, and under obligation to pay more than one-half of the taxes thereon, may within ninety

(90) days from the date the first tax payment is due, file an appeal in the local office of tax

assessment; provided, if the person to whom a tax on real estate is assessed chooses to file an

appeal, the appeal filed by a tenant or group of tenants will be void. For the purposes of this

section, the tenant(s) has the burden of proving financial responsibility to pay more than one-half

(1/2) of the taxes. The assessor has forty-five (45) days to review the appeal, render a decision

and notify the taxpayer of the decision. The taxpayer, if still aggrieved, may appeal the decision

of the tax assessor to the local tax board of review, or in the event that the assessor does not

render a decision, the taxpayer may appeal to the local tax board of review at the expiration of the

forty-five (45) day period. Appeals to the local tax board of review are to be filed not more than

thirty (30) days after the assessor renders a decision and notifies the taxpayer, or if the assessor

does not render a decision within forty-five (45) days of the filing of the appeal, not more than

ninety (90) days after the expiration of the forty-five (45) day period. The local tax board of

review shall, within ninety (90) days of the filing of the appeal, hear the appeal and render a

decision within thirty (30) days of the date that the hearing was held. Provided, that a city or town

may request and receive an extension from the director of the Rhode Island department of

revenue.

     (b) Appeals to the local office of tax assessment are to be on an application. In the event

of an appeal to the local tax board of review, the local office of tax assessment, upon request by

the taxpayer, shall forward the application to the local tax board of review. The application shall

be in the following form:

STATE OF RHODE ISLAND

FISCAL YEAR ________ ________________________

Name of City or Town

APPLICATION FOR APPEAL OF PROPERTY TAX

     For appeals to the tax assessor, this form must be filed with the local office of tax

assessment within ninety (90) days from the date the first tax payment is due. For appeals to the

local tax board of review, this form must be filed with the local tax board of review not more than

thirty (30) days after the assessor renders a decision, or if the assessor does not render a decision

within forty-five (45) days of the filing of the appeal, not more than ninety (90) days after the

expiration of the forty-five (45) day period.

1. TAXPAYER INFORMATION:

A. Name(s) of Assessed Owner:

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B. Name(s) and Status of Applicant (if other than Assessed Owner):

____________Subsequent Owner (Acquired Title After December 31 on

20________ )

________ Administrator/Executor ________ Lessee ________ Mortgagee _________

Other Specify ________

C. Mailing Address and Telephone No.: _________________ ( ) _________________

Address Tel. No.

D. Previous Assessed Value _____________ E. New Assessed Value _____________

2. PROPERTY IDENTIFICATION: Complete using information as it appears on tax bill.

A. Tax Bill Account No.: _______ Assessed Valuation ________ Annual Tax

B. Location: ________________________ Description:

No. Street Zip

Real Estate Parcel Identification: Map ______ Block ______ Parcel ______ Type ______

Tangible Personal

C. Date Property Acquired: Purchase Price: Total cost of any improvements __________

What is the amount of fire insurance on building:

3. REASON(S) REDUCTION SOUGHT: Check reason(s) reduction is warranted and briefly

explain why it applies. Continue explanation on attachment if necessary.

Overvaluation. Incorrect Usage Classification.

Disproportionate Assessment. Other Specify:

Applicant's Opinion of Value $ Fair Market Value Class Assessed Value

(as of December

31 in the year of

the last update or

revaluation for

real estate and

as of December 31

of the tax year

for personal estate;)

     Explanation

     Have you filed a true and exact account this year with the City Assessor as required by

law?

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Comparable Properties that support your claim:

Address Sale Price Sales Date Property Type Assessed value

4. SIGNATURES;

SIGNATURE OF APPLICANT DATE

SIGNATURE OF AUTHORIZED AGENT DATE

___________________________________________________________( )_______________

Name of Preparer Address Tel. No.

TAXPAYER INFORMATION ABOUT APPEAL PROCEDURE

     REASONS FOR AN APPEAL. It is the intent of the general assembly to ensure that all

taxpayers in Rhode Island are treated equitably. Ensuring that taxpayers are treated fairly begins

where cities and towns meet defined standards related to performing property values. All

properties should be assessed in a uniform manner, and properties of equal value should be

assessed the same.

     TO DISPUTE YOUR VALUATION OR ASSESSMENT OR CORRECT ANY OTHER

BILLING PROBLEM OR ERROR THAT CAUSED YOUR TAX BILL TO BE HIGHER

THAN IT SHOULD BE, YOU MUST APPEAL WITHIN NINETY (90) DAYS FROM THE

DATE THE FIRST TAX PAYMENT IS DUE.

     You may appeal your assessment if your property is: (1) OVERVALUED (assessed value

is more than the fair market value as of December 31 in the year of the last update or revaluation

for real estate and as of December 31 of the tax year for personal estate for any reason, including

clerical and data processing errors; (2) disproportionately assessed in comparison with other

properties; (3) classified incorrectly as residential, commercial, industrial or open space, farm or

forest; (4) illegal tax partially or fully exempt; (5) modified from its condition from the time of

the last update or revaluation.

     WHO MAY FILE AN APPLICATION: You may file an application if you are (1) the

assessed or subsequent (acquiring title after December 31) owner of the property; (2) the owner's

administrator or executor; (3) a tenant or group of tenants of real estate paying rent therefrom,

and under obligations to pay more than one-half (1/2) of the taxes thereon; (4) a person owning or

having an interest in or possession of the property; or (5) a mortgagee if the assessed owner has

not applied. In some cases, you must pay all or a portion of the tax before you can file.

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     WHEN AND WHERE APPLICATION MUST BE FILED. Your application must be

filed with the local office of tax assessment within NINETY (90) days from the date the first tax

payment is due. THESE DEADLINES CANNOT BE EXTENDED OR WAIVED BY THE

ASSESSOR FOR ANY REASON. IF YOUR APPLICATION IS NOT FILED ON TIME, YOU

LOSE ALL RIGHTS TO AN ABATEMENT AND THE ASSESSOR CANNOT BY LAW

GRANT YOU ONE. AN APPLICATION IS FILED WHEN RECEIVED BY THE

ASSESSOR'S OFFICE.

     PAYMENT OF TAX. Filing an application does not stay the collection of your taxes. In

some cases, you must pay the tax when due to appeal the assessors disposition of your

application. Failure to pay the tax assessed when due may also subject you to interest charges and

collection action. To avoid any loss of rights or additional charges, you should pay the tax as

assessed. If an abatement is granted and you have already paid the entire year's tax as abated, you

will receive a refund of any overpayment.

     FILING AN ACCOUNT. Rhode Island General Laws Section 44-5-15 requires the

annual filing of a true and exact account of all ratable estate owned or possessed by every person

and corporate body. The time to file is between December 31, and January 31, of intention to

submit declaration by March 15. Failure to file a true and full account, within the prescribed time,

eliminates the right to appeal to the superior court, subject to the exceptions provided in Rhode

Island General Laws Section 44-5-26(b). No amended returns will be accepted after March 15th.

Such notice of your intention must be sent by certified mail, postage prepaid, postmark no later

than 12 o'clock midnight of the last day, January 31. No extensions beyond March 15th can be

granted. The form for filing such account may be obtained from the city or town assessor.

     ASSESSOR'S DISPOSITION. Upon applying for a reduction in assessment, you may be

asked to provide the assessor with further written information about the property and to permit

them to inspect it. Failure to provide the information or permit an inspection within thirty (30)

days of the request may result in the loss of your appeal rights.

     APPEAL. The assessor shall have forty-five (45) days to review the appeal, render a

decision and notify the taxpayer of the decision. The taxpayer, if still aggrieved, may appeal the

decision of the tax assessor to the local tax board of review, or in the event that the assessor does

not render a decision, the taxpayer may appeal to the local tax board of review at the expiration of

the forty-five (45) day period. Appeals to the local tax board of review shall be filed not more

than thirty (30) days after the assessor renders a decision and notifies the taxpayer, or if the

assessor does not render a decision within forty-five (45) days of the filing of the appeal, not

more than ninety (90) days after the expiration of the forty-five (45) day period.

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DISPOSITION OF APPLICATION (ASSESSOR'S USE ONLY)

GRANTED Assessed Value

Date Sent____________ Abated Value

Date Returned__________ DENIED Adjusted Value

Assessed Tax

On-Site Inspection DEEMED DENIED Abated Tax

Date Adjusted Tax

By__________________

Date Voted/Deemed Denied Tax Board of Review

Date Change Certificate No.

     Any person still aggrieved on any ground whatsoever by an assessment of taxes against

him or her in any city or town may, within thirty (30) days of the tax board of review decision

notice, file a petition with the appellate tax board. Any person still aggrieved on any ground

whatsoever by any decision of the appellate tax board may, within thirty (30) days file a petition

in the superior court for the county in which the city or town lies for relief from the assessment, to

which petition the assessors of taxes of the city or town in office at the time the petition is filed

shall be made parties respondent, and the clerk shall thereupon issue a citation substantially in the

following form:

THE STATE OF

RHODE ISLAND AND PROVIDENCE PLANTATIONS.

     To the sheriffs of several counties, or to their deputies, Greetings: We command you to

summon the assessors of taxes of the town of _________ : to wit, _________ of _________ (if to

be found in your precinct) to answer the complaint of __________ of _________ on the return

day hereof (said return day being the _______ day of _______ A.D. 20_______) in the superior

court to be holden at the county courthouse in __________ as by petition filed in court is fully set

forth; and to show cause why said petition should not be granted. Hereof fail not, and make true

return of this writ with your doings thereon. Witness, the seal of our superior court, at

__________ this ________ day of _________ in the year ______

_____________________________________, Clerk.

     (c) Provided, that in case the person has not filed an account, or filed an appeal first

within the local tax board of review, that person shall not have the benefit of the remedy provided

in this section and in §§ 44-5-27 -- 44-5-31, unless: (1) that person's real estate has been assessed

at a value in excess of the value at which it was assessed on the last preceding assessment day,

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whether then owned by that person or not, and has been assessed, if assessment has been made at

full and fair cash value, at a value in excess of its full and fair cash value, or, if assessment has

purportedly been made at a uniform percentage of full and fair cash value, at a percentage in

excess of the uniform percentage; or (2) the tax assessed is illegal in whole or in part; and that

person's remedy is limited to a review of the assessment on the real estate or to relief with respect

to the illegal tax, as the case may be.

     SECTION 4. 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 -- APPELLATE TAX BOARD

***

     This act would establish a five (5) member board to review decisions relating to

valuation, assessment and taxation of real and tangible property of individuals and corporations

from the tax review boards of the cities and towns prior to any appeal to the superior court and

establish municipal uniform tax rates for all classes of residential and commercial real property,

tangible personal property, vacant land, farm land, forest land and open spaces.

     This act would take effect upon passage.

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