2020 -- H 8016

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LC005401

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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

     

     Introduced By: Representative Joshua J. Giraldo

     Date Introduced: June 09, 2020

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-5-20.02 of the General Laws in Chapter 44-5 entitled "Levy and

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Assessment of Local Taxes" is hereby amended to read as follows:

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     44-5-20.02. Central Falls -- Property tax classification -- List of ratable property.

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     (a) Notwithstanding any provision within § 44-5-11.8 to the contrary, on On or before June

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1, except in 1990, in which case the time is thirty (30) days after June 1, 1990, the assessor in the

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city of Central Falls, after certification for classification, shall submit to the director of revenue a

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list containing the true, full, and fair cash value of the ratable estate and motor vehicles and shall

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classify and provide a tax rate for the property according to the following use:

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     (1) "Class 1" includes: (i) Residential residential property which is owner-occupied

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dwellings of no more than five (5) units and which is property used or held for human habitation,

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including rooming houses and mobile homes with facilities designed and used for living, sleeping,

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cooking, and eating on a non-transient basis. Eligibility for the owner-occupied tax classification

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shall be determined by compliance with § 44-3-34 and relevant city ordinances. This property

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includes accessory land, buildings, or improvements incidental to the habitation and used

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exclusively by the residents of the property or their guests. This property does not include a hotel,

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motel, commercial, or industrial property. Residential property shall consist of:

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     (A) Owner-occupied dwellings of no more than five (5) units;

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     (B) Non owner-occupied dwellings of no more than five (5) units, including properties for

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mixed use as residential and commercial properties; and

 

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     (C) Units or dwellings with six (6) or more units.

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     (2) "Class 2" includes residential property which is owner-occupied dwellings of more than

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five (5) units and non-owner-occupied dwellings, including properties for mixed use as residential

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and commercial properties, and which is property used or held for human habitation, including

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rooming houses and mobile homes with facilities designed and used for living, sleeping, cooking,

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and eating on a non-transient basis. This property includes accessory land, buildings, or

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improvements incidental to the habitation and used exclusively by the residents of the property or

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their guests. This property includes open space including "farm", "forest" and "open space land" as

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defined in accordance with § 44-27-2. This property does not include a hotel, motel, commercial,

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or industrial property.

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     (ii) Open space including "farm", "forest", and "open-space land" as defined in accordance

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with § 44-27-2.

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     (2) "Class 2" includes:

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     (i) Personal

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     (3) "Class 3" includes personal property, previously subject to tax, includes all goods,

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chattels, and effects, wherever they may be, except those that are exempt from taxation by the laws

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of the United States or of this state.; and

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     (ii) Every vehicle and trailer registered under chapter 3 of title 31.

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     (3) "Class 3"

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     (4) "Class 4" includes every vehicle and trailer registered under chapter 3 of title 31.

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     (5) "Class 5" includes property used commercially or for industrial manufacturing.

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     (b) The city of Central Falls may, by resolution or ordinance adopted by the city council,

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provide for tax classification of property and tax rates in the city of Central Falls to become

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effective in any year in which the assessment roll reflects a general revaluation of all taxable

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property in the city of Central Falls based on the five (5) classes outlined in subsection (a) of this

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section.

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     (c) The effective tax rate for Class 2 shall not exceed by two (2) times, the effective tax

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rate for Class 1; the effective tax rate for Class 5 shall not exceed by three (3) times, the effective

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tax rate for Class 1; and the effective tax rate for Class 3 shall not exceed by four (4) times, the

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effective tax rate for Class 1.

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     SECTION 2. Section 44-3-34 of the General Laws in Chapter 44-3 entitled "Property

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Subject to Taxation" is hereby amended to read as follows:

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     44-3-34. Central Falls -- Homeowner exemption.

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     (a) The city council of the city of Central Falls, may, by ordinance, provide that the property

 

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of each person who is a domiciled resident of the city of Central Falls and which property is the

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principal residence of that person is exempt from taxation as follows: single-family owner-occupied

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dwellings of no more than five (5) units not to exceed sixty thousand dollars ($60,000) of assessed

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valuation; two-family (2) dwellings not to exceed five thousand dollars ($5,000) of assessed

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valuation; three- through eight-family (8) dwellings and commercial units not to exceed three

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thousand dollars ($3,000) of assessed valuation. The exemption is applied to residential property

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and includes property with up to a total of eight (8) five (5) residential units and may include one

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commercial or professional use unit as part of the total of eight (8) five (5) assessed units; provided,

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that the person entitled to the exemption has presented to the city tax assessors, on or before the

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last day on which sworn statements may be filed with the assessors for the year for which exemption

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is claimed. That person is entitled to the exemption as long as his or her legal residence remains

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unchanged.

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     (b) Each person upon application for exemption shall provide by means of a sworn

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statement to the assessor clear and convincing evidence to establish his or her legal residence at the

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property subject to the exemption and eligibility for the exemption.

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     (c) In the event property granted an exemption under this section is sold or transferred

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during the year for which the exemption is claimed, the city of Central Falls, upon approval of the

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city council, may provide for a proration of the homestead exemption in cases where title to a

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property passes from:

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     (1) Those not entitled to claim an exemption to those who are entitled to claim an

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exemption; or

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     (2) A person entitled to claim an exemption to those who are not entitled to claim an

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exemption.

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     (d) The city council of the city of Central Falls shall, by ordinance, establish rules and

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regulations governing the acceptance of evidence of residence.

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     SECTION 3. This act shall take effect upon passage and shall be retroactive to July 1, 2020.

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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 amend the classes of property to create a class of owner-occupied dwellings

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of no more than five (5) units as opposed to those properties of five (5) or more units and nonowner-

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occupied dwellings, limit the effective tax rates for all classes and extend home exemption to

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owner-occupied property of no more than five (5) units.

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     This act would take effect upon passage and would be retroactive to July 1, 2020.

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