2020 -- S 2354

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LC004743

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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

     

     Introduced By: Senator Walter S. Felag

     Date Introduced: February 13, 2020

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-3-9 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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     44-3-9. Exemption or stabilizing of taxes on property used for manufacturing,

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commercial, or residential purposes.

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     (a)(1) Except as provided in this section, the electors of any city or town qualified to vote

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on a proposition to appropriate money or impose a tax when legally assembled, may vote to

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authorize the city or town council, for a period not exceeding twenty (20) years, and subject to the

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conditions as provided in this section, to exempt from payment, in whole or in part, real and

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personal property which has undergone environmental remediation, is historically preserved, or is

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used for affordable housing, manufacturing, commercial, or residential purposes, or to determine a

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stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of

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the property or the rate of tax; provided, that after public hearings, at least ten (10) days' notice of

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which shall be given in a newspaper having a general circulation in the city or town, the city or

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town council determines that:

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     (i) Granting of the exemption or stabilization will inure to the benefit of the city or town

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by reason of:

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     (A) The willingness of the manufacturing or commercial concern to locate in the city or

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town, or of individuals to reside in such an area; or

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     (B) The willingness of a manufacturing firm to expand facilities with an increase in

 

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employment or the willingness of a commercial or manufacturing concern to retain or expand its

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facility in the city or town and not substantially reduce its work force in the city or town; or

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     (C) An improvement of the physical plant of the city or town which will result in a long-

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term economic benefit to the city or town and state; or

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     (D) An improvement which converts or makes available land or facility that would

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otherwise be not developable or difficult to develop without substantial environmental remediation;

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or

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     (ii) Granting of the exemption or stabilization of taxes will inure to the benefit of the city

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or town by reason of the willingness of a manufacturing or commercial or residential firm or

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property owner to construct new or to replace, reconstruct, convert, expand, retain or remodel

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existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures,

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machinery, or equipment resulting in an increase or maintenance in plant, residential housing or

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commercial building investment by the firm or property owned in the city or town;

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     (2) Provided that should the city or town council make the determination in subparagraph

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(1)(i)(B) of this subsection, any exemption or stabilization may be granted as to new buildings,

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fixtures, machinery, or equipment for new buildings, firms or expansions, and may be granted as

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to existing buildings, fixtures, machinery and equipment for existing employers in the city or town.

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     (b) Cities shall have the same authority as is granted to towns except that authority granted

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to the qualified electors of a town and to town councils shall be exercised in the case of a city by

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the city council.

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     (c) For purposes of this section, "property used for commercial purposes" means any

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building or structures used essentially for offices or commercial enterprises.

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     (d) Except as provided in this section, property, the payment of taxes on which has been so

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exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the

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period for which the exemption or stabilization of the amount of taxes is granted, be further liable

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to taxation by the city or town in which the property is located so long as the property is used for

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the manufacturing or commercial, or residential purposes for which the exemption or stabilized

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amount of taxes was made.

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     (e) Notwithstanding any vote of the qualified electors of a town and findings of a town

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council or of any vote and findings by a city council, the property shall be assessed for and shall

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pay that portion of the tax, if any, assessed by the city or town in which the real or personal property

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is located, for the purpose of paying the indebtedness of the city or town and the indebtedness of

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the state or any political subdivision of the state to the extent assessed upon or apportioned to the

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city or town, and the interest on the indebtedness, and for appropriation to any sinking fund of the

 

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city or town, which portion of the tax shall be paid in full, and the taxes so assessed and collected

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shall be kept in a separate account and used only for that purpose.

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     (f) Nothing in this section shall be deemed to permit the exemption or stabilization

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provided in this section for any manufacturing or commercial concern relocating from one city or

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town within the state of Rhode Island to another.; provided, however, that a manufacturing or

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commercial concern may, upon a form prescribed by the commerce corporation, apply to the

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commerce corporation, in conjunction with the municipality in which it seeks to relocate, for a

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determination that:

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     (1) The manufacturing or commercial concern could reasonably and efficiently relocate

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outside the state of Rhode Island; and

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     (2) Relocating outside the state of Rhode island would be economically advantageous and

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beneficial to the company.

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     The application shall include a copy of any proposed agreement with the municipality to

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which it seeks to relocate and a statement outlining the benefits the company could receive if it

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were to relocate outside the state of Rhode Island. If the commerce corporation, upon review of the

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application finds that the manufacturing or commercial concern would benefit from relocating

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outside the state of Rhode Island, it may permit the exemption or stabilization of taxes in another

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municipality within this state.

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     (g) Renewable energy resources, as defined in § 39-26-5, qualify for tax stabilization

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agreements pursuant to § 44-3-9(a).

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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 - PROPERTY SUBJECT TO TAXATION

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     This act would permit a manufacturing or commercial concern located in this state to apply

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to the commerce corporation, for an exemption or stabilization of taxes, when moving to another

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municipality within this state if it can show that it could reasonably and efficiently relocate outside

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the state and that such relocation would be economically advantageous.

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     This act would take effect upon passage.

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LC004743

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