2022 -- H 7127

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LC003656

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO TAXATION -- PROPERTY TAX RELIEF

     

     Introduced By: Representatives Ruggiero, Shallcross Smith, Carson, Hull, Handy,
Fogarty, Vella-Wilkinson, Williams, Batista, and Caldwell

     Date Introduced: January 20, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-33-9 of the General Laws in Chapter 44-33 entitled "Property Tax

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Relief" is hereby amended to read as follows:

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     44-33-9. Computation of credit.

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     The amount of any claim made pursuant to this chapter shall be determined as follows:

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     (1) For any taxable year, a claimant is entitled to a credit against his or her tax liability

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equal to the amount by which the property taxes accrued or rent constituting property taxes accrued

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upon the claimant's homestead for the taxable year exceeds a certain percentage of the claimant's

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total household income for that taxable year, which percentage is based upon income level and

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household size. The credit shall be computed in accordance with the following table:

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     Income Range 1 Person 2 or More Persons

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     less than $6000 3% 3%

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     $6001-9000 4% 4%

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     $9001-12000 5% 6% 5%

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     $12001-15000 6% 5%

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     $15001-30000 6% 6%

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     31001-50000 6%

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     (2) The maximum amount of the credit granted under this chapter will be as follows:

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     Year Credit Maximum

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     Commencing July 1977 $55.00

 

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     Commencing July 1978 $150.00

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     Commencing July 1979 $175.00

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     Commencing July 1980 $200.00

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     Commencing on July 1997 and subsequent years $250.00

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     Commencing on July 2006 2022 $300.00 850.00

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     Commencing July 2007 and subsequent years, the credit shall be increased, at a minimum,

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to the maximum amount to the nearest five dollars ($5.00) increment within the allocation of five

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one-hundredths of one percent (0.05%) of net terminal income derived from video lottery games

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up to a maximum of five million dollars ($5,000,000) until a maximum credit of five hundred

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dollars ($500) is obtained pursuant to the provisions of ยง 42-61-15. In no event shall the exemption

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in any fiscal year be less than the prior fiscal year.

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     (3) The income ranges and credits set forth in this section shall be adjusted annually for

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inflation by the total percentage increase in the Consumer Price Index for All Urban Consumers

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(CPI-U). published by the United States Department of Labor Bureau of Labor Statistics for the

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Northeast Region for the previous fiscal year, but in any event not to exceed twelve percent (12%).

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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 TAX RELIEF

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     This act would increase the total amount of income to fifty thousand dollars ($50,000) per

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household to claim the state-funded property tax relief credit as well as the maximum credit amount

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to eight hundred fifty dollars ($850) and mandate that the income ranges and credits be adjusted

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annually for inflation.

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     This act would take effect upon passage.

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LC003656

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