2020 -- S 2534

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LC004782

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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 LOCAL ASSESSMENT OF LOCAL TAXES

     

     Introduced By: Senators Lombardo, Ciccone, Lombardi, Nesselbush, and Archambault

     Date Introduced: February 25, 2020

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-5-13.11 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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     44-5-13.11. Qualifying low-income housing -- Assessment and taxation Qualifying

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low- and moderate-income housing -- Assessment and taxation.

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     Any residential property that has been issued an occupancy permit on or after January 1,

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1995, after substantial rehabilitation as defined by the U.S. Department of Housing and Urban

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Development Handbook 4460.1, Chapter 4, Section 2, and is encumbered by a covenant recorded

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in the land records in favor of a governmental unit or Rhode Island housing and mortgage finance

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corporation restricting either or both the rents that may be charged to tenants of the property or the

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incomes of the occupants of the property, is subject to a tax that equals eight percent (8%) of the

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property's previous years' gross scheduled rental income or a lesser percentage as determined by

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each municipality.

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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 LOCAL ASSESSMENT OF LOCAL TAXES

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     This act would apply a tax to moderate-income housing equal to eight percent (8%) of the

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property's previous year's gross scheduled rental income as defined by the U.S. Department of

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Housing and Urban Development Handbook 4461.1, Chapter 4, Section 2.

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     This act would take effect upon passage.

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