2020 -- S 2071

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LC003524

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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: Senators Seveney, DiPalma, Miller, Conley, and Murray

     Date Introduced: January 21, 2020

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-5-1, 44-5-12, 44-5-13 and 44-5-30 of the General Laws in

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Chapter 44-5 entitled "Levy and Assessment of Local Taxes" are hereby amended to read as

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follows:

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     44-5-1. Powers of city or town electors to levy -- Date of assessment of valuations.

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     The electors of any city or town qualified to vote on any proposition to impose a tax or

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for the expenditure of money, when legally assembled, may levy a tax for the purposes authorized

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by law, on the ratable property of the city or town, either in a sum certain, or in a sum not less

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than a certain sum and not more than a certain sum. The tax is apportioned upon the assessed

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valuations pursuant to § 44-5-12 as determined by the assessors of the city or town as of

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December 31 in each year at 12:00 A.M. midnight, the date being known as the date of

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assessment of city or town valuations.

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     44-5-12. Assessment at full and fair cash value.

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     (a) All real property subject to taxation shall be assessed at its full and fair cash value, as

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of December 31 in the year of the last update or revaluation or at a uniform percentage of its

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value thereof, not to exceed one hundred percent (100%), to be determined by the assessors in

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each town or city; provided, that:

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     (1) Any residential property encumbered by a covenant recorded in the land records in

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favor of a governmental unit or Rhode Island housing and mortgage finance corporation

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restricting either or both the rents that may be charged or the incomes of the occupants shall be

 

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assessed and taxed in accordance with § 44-5-13.11;

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     (2) In assessing real estate that is classified as farm land, forest, or open space land in

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accordance with chapter 27 of this title, the assessors shall consider no factors in determining the

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full and fair cash value of the real estate other than those that relate to that use without regard to

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neighborhood land use of a more intensive nature;

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     (3) Warwick. The city council of the city of Warwick is authorized to provide, by

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ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick

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who makes any improvements or additions on his or her principal place of residence in the

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amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the

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city of Warwick, is exempt from reassessment of property taxes on the improvement or addition

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until the next general citywide reevaluation of property values by the tax assessor. For the

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purposes of this section, "residence" is defined as voting address. This exemption does not apply

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to any commercial structure. The property owner shall supply all necessary plans to the building

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official for the improvements or addition and shall pay all requisite building and other permitting

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fees as now are required by law; and

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     (4) Central Falls. The city council of the city of Central Falls is authorized to provide, by

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ordinance, that the owner of any dwelling of one to eight (8) units who makes any improvements

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or additions to his or her residential or rental property in an amount not to exceed twenty-five

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thousand dollars ($25,000), as determined by the tax assessor of the city of Central Falls, is

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exempt from reassessment of property taxes on the improvement or addition until the next general

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citywide reevaluation of property values by the tax assessor. The property owner shall supply all

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necessary plans to the building official for the improvements or additions and shall pay all

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requisite building and other permitting fees as are now required by law.

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     (5) Tangible property shall be assessed according to the asset classification table as

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defined in § 44-5-12.1.

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     (6) Provided, however, that, for taxes levied after December 31, 2015, new construction

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on development property is exempt from the assessment of taxes under this chapter at the full and

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fair cash value of the improvements, as long as:

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     (i) An owner of development property files an affidavit claiming the exemption with the

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local tax assessor by December 31 each year; and

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     (ii) The assessor shall then determine if the real property on which new construction is

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located is development property. If the real property is development property, the assessor shall

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exempt the new construction located on that development property from the collection of taxes on

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improvements, until such time as the real property no longer qualifies as development property,

 

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as defined herein.

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     For the purposes of this section, "development property" means: (A) Real property on

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which a single-family residential dwelling or residential condominium is situated and said single-

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family residential dwelling or residential condominium unit is not occupied, has never been

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occupied, is not under contract, and is on the market for sale; or (B) Improvements and/or

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rehabilitation of single-family residential dwellings or residential condominiums that the owner

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of such development property purchased out of a foreclosure sale, auction, or from a bank, and

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which property is not occupied. Such property described in § 44-5-12(a)(6)(ii) shall continue to

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be taxed at the assessed value at the time of purchase until such time as such property is sold or

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occupied and no longer qualifies as development property. As to residential condominiums, this

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exemption shall not affect taxes on the common areas and facilities as set forth in § 34-36-27. In

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no circumstance shall such designation as development property extend beyond two (2) tax years

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and a qualification as a development property shall only apply to property that applies for, or

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receives, construction permits after July 1, 2015. Further, the exemptions set forth in this section

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shall not apply to land.

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     The exemptions set forth in this subsection (a)(6) for development property shall expire

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as of December 31, 2021.

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     (b) Municipalities shall make available to every land owner whose property is taxed

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under the provisions of this section a document that may be signed before a notary public

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containing language to the effect that they are aware of the additional taxes imposed by the

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provisions of § 44-5-39 in the event that they use land classified as farm, forest, or open space

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land for another purpose.

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     (c) Pursuant to the provisions of § 44-3-29.1, all wholesale and retail inventory subject to

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taxation is assessed at its full and fair cash value, or at a uniform percentage of its value, not to

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exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each town and city.

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Once the fiscal year 1999 value of the inventory has been assessed, this value shall not increase.

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The phase-out rate schedule established in § 44-3-29.1(d) applies to this fixed value in each year

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of the phase out.

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     44-5-13. Assessment and apportionment according to law -- Date of assessment.

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     The assessors shall assess all valuation and apportion any tax levy on the inhabitants of

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the city or town and the ratable property in the city or town according to law, and the assessed

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valuation of the ratable property is made as of the date of assessment provided in § 44-5-1 and

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shall be in accordance with the provisions of § 44-5-12; except that personal property consisting

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of stocks in trade and materials used in manufacture, which include raw materials, fuel, goods in

 

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process of manufacture, and completed products, except those which are specifically exempt by

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statute, are estimated at the average of the personalty kept on hand or located in the taxing district

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during the twelve (12) months ending with the date of assessment, or the average of any portion

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of the twelve (12) months when the business has not been carried on or located in the taxing

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district for a year.

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     44-5-30. Judgment on petition where taxpayer has filed account.

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     If the taxpayer has given in an account, and if on the trial of the petition, either with or

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without a jury, it appears that the taxpayer's real estate, tangible personal property, or intangible

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personal property has been assessed, if assessment has been made at full and fair cash value, at a

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

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uniform percentage of full and fair cash value, at a percentage in excess of the uniform

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percentage, in excess of the provisions of § 44-5-12 or if it appears that the tax assessed is illegal

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in whole or in part, the court shall give judgment that the sum by which the taxpayer has been so

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overtaxed, or illegally taxed, with his or her costs, be deducted from his or her tax; but if the

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taxpayer's tax be paid, whether before or after the filing of the petition, then the court shall give

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judgment for the petitioner for the sum by which he or she has been so overtaxed, or illegally

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taxed, plus the amount of any penalty paid on the tax, with interest from the date on which the tax

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and penalty were paid and costs, which judgment shall be paid to the petitioner by the city or

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town treasurer out of the treasury. If, however, on the trial of the petition, it appears that the

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taxpayer has fraudulently concealed or omitted any property from his or her account, or if it

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appears that the assessors have not assessed either the taxpayer's real estate or his or her tangible

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personal property or his or her intangible personal property at a value in excess of its full and fair

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cash value, if assessment has been made at full and fair cash value, or if assessment has

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

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excess of the uniform percentage, the provisions of § 44-5-12 and that the taxpayer has not been

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illegally taxed, the assessors shall have judgment and execution for their costs.

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     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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     This act would authorize tax assessors to use the last revaluation as the assessed

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valuation.

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     This act would take effect upon passage.

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