2023 -- H 5049

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LC000513

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

     

     Introduced By: Representatives Perez, Batista, Vella-Wilkinson, Noret, Corvese,
Costantino, and Cardillo

     Date Introduced: January 11, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-5-11.6 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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     44-5-11.6. Assessment of valuations - Apportionment of levies.

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     (a) Notwithstanding the provisions of § 44-5-11 [repealed], beginning on December 31,

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2000, the assessors in the several towns and cities shall conduct an update as defined in this section

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or shall assess all valuations and apportion the levy of all taxes legally ordered under the rules and

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regulations, not repugnant to law, as the town meetings and city councils, respectively, shall, from

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time to time, prescribe; provided, that the update or valuation is performed in accordance with the

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following schedules:

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     (1)(i) For a transition period, for cities and towns that conducted or implemented a

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revaluation as of 1993 or in years later:

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       Update Revaluation

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     Lincoln 2000 2003

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     South Kingstown 2000 2003

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     Smithfield 2000 2003

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     West Warwick 2000 2003

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     Johnston 2000 2003

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     Burrillville 2000 2003

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     North Smithfield 2000 2003

 

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     Central Falls 2000 2003

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     North Kingstown 2000 2003

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     Jamestown 2000 2003

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     North Providence 2001 2004

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     Cumberland 2001 2004

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     Bristol 2004 2001

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     Charlestown 2001 2004

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     East Greenwich 2002 2005

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     Cranston 2002 2005

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     Barrington 2002 2005

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     Warwick 2003 2006

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     Warren 2003 2006

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     East Providence 2003 2006

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     (ii) Provided that the reevaluation period for the town of New Shoreham shall be extended

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to 2003 and the update for the town of Hopkinton may be extended to 2007 with no additional

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reimbursements by the state relating to the delay.

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     (iii) The implementation date for this schedule is December 31, of the stated year.

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     (iv) Those cities and towns not listed in this schedule shall continue the revaluation

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schedule pursuant to § 44-5-11 [repealed].

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     (2)(i) For the post-transition period and in years thereafter:

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       Update #1 Update #2 Revaluation

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     Woonsocket 2002 2005 2008

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     Pawtucket 2002 2005 2008

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     Portsmouth 2001 2004 2007

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     Coventry 2001 2004 2007

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     Providence 2003 2006 2009

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     Foster 2002 2005 2008

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     Middletown 2002 2005 2008

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     Little Compton 2003 2006 2009

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     Scituate 2003 2006 2009

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     Westerly 2003 2006 2009

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     West Greenwich 2004 2007 2010

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     Glocester 2004 2007 2010

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     Richmond 2004 2007 2010

 

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     Bristol 2004 2007 2010

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     Tiverton 2005 2008 2011

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     Newport 2005 2008 2011

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     New Shoreham 2006 2009 2012

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     Narragansett 2005 2008 2011

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     Exeter 2005 2008 2011

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     Hopkinton 2007 2010 2013

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     Lincoln 2006 2009 2012

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     South Kingstown 2006 2009 2012

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     Smithfield 2006 2009 2012

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     West Warwick 2006 2009 2012

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     Johnston 2006 2009 2012

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     Burrillville 2006 2009 2012

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     North Smithfield 2006 2009 2012

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     Central Falls 2006 2009 2012

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     North Kingstown 2006 2009 2012

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     Jamestown 2006 2009 2012

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     North Providence 2007 2010 2013

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     Cumberland 2007 2010 2013

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     Charlestown 2007 2010 2013

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     East Greenwich 2008 2011 2014

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     Cranston 2008 2011 2014

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     Barrington 2008 2010 2014

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     Warwick 2009 2012 2015

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     Warren 2009 2012 2016

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     East Providence 2009 2012 2015

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     (ii) The implementation date for the schedule is December 31 of the stated year. Upon the

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completion of the update and revaluation according to this schedule, each city and town shall

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conduct a revaluation within nine (9) years of the date of the prior revaluation and shall conduct an

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update of real property every three (3) years from the last revaluation. Provided, that for the town

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of Bristol, the time for the first statistical update following the 2010 revaluation shall be extended

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from 2013 to 2014 and said statistical update shall be based on valuations as of December 31, 2014,

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and the first revaluation following the December 31, 2014, and 2015 statistical revaluation shall be

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extended from 2016 to 2019 and said revaluation shall be based on valuations as of December 31,

 

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2018; and, that for the city of Woonsocket, the time of the first statistical update following the 2017

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revaluation shall be extended from 2020 to 2021, and the statistical update shall be based on the

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valuations as of December 31, 2021; and, that for the city of Warwick, the time for the second

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statistical update following the 2015 revaluation shall be extended from 2021 to 2022 and said

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statistical update shall be based on valuations as of December 31, 2022; and, that for the town of

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Johnston, the time of the revaluation following the 2012 revaluation shall be extended from 2022

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to 2023, and the statistical update shall be based on the valuations as of December 31, 2022; and,

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that for the town of West Greenwich, the time for a first statistical update following the 2019

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revaluation shall be extended from 2022 to 2023 and said statistical update shall be based on

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valuations as of December 31, 2023; and, that for the town of New Shoreham, the full evaluation

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nine (9) years following the 2012 revaluation based on the valuations of December 31, 2021, shall

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be extended to December 31, 2022, and be based on valuations as of December 31, 2022. Provided

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that for the city of East Providence, the revaluation period as of the December 31, 2021, assessment

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date shall be extended to the December 31, 2022, assessment date, with no additional

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reimbursements by the state relating to the delay.

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     (iii) Cities and towns shall not change the assessment of any property based on the purchase

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price of the property after a transfer occurs except in accordance with a townwide or citywide

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revaluation or update schedule; provided that, this prohibition shall not apply to completed new

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real estate construction.

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     (iv) Commencing December 31, 2023, and every December 31 thereafter, all revaluations

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performed shall not increase more than twenty percent (20%) from the last previous revaluation

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performed in accordance with this section.

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     (b) No later than February 1, 1998, the director of the department of revenue shall

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promulgate rules and regulations consistent with the provisions of this section to define the

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requirements for the updates that shall include, but not be limited to:

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     (1) An analysis of sales;

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     (2) A rebuilding of land value tables;

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     (3) A rebuilding of cost tables of all improvement items; and

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     (4) A rebuilding of depreciation schedules. Upon completion of an update, each city or

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town shall provide for a hearing and/or appeal process for any aggrieved person to address any

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issue that arose during the update.

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     (c) The costs incurred by the towns and cities for the first update shall be borne by the state

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in an amount not to exceed twenty dollars ($20.00) per parcel. The costs incurred by the towns and

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cities for the second update shall be borne eighty percent (80%) by the state (in an amount not to

 

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exceed sixteen dollars ($16.00) per parcel) and twenty percent (20%) by the town or city, and in

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the third update and thereafter, the state shall pay sixty percent (60%) of the update (not to exceed

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twelve dollars ($12.00) per parcel) and the town or city shall pay forty percent (40%); provided,

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that for the second update and in all updates thereafter, that the costs incurred by any city or town

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that is determined to be a distressed community pursuant to § 45-13-12 shall be borne eighty percent

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(80%) by the state and twenty percent (20%) by the city or town for all updates required by this

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section.

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     (d) The office of municipal affairs, after consultation with the League of Cities and Towns

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and the Rhode Island Assessors’ Association, shall recommend adjustments to the costs formula

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described in subsection (c) of this section based upon existing market conditions.

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     (e) Any property that is either exempt from the local property tax pursuant to § 44-3-3 or

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pays a city or town an amount in lieu of taxes is not required to have its values updated pursuant to

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this section and the property is not eligible for the reimbursement provisions of subsection (c) of

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this section. However, those properties that are exempt from taxation and are eligible for state

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appropriations in lieu of property tax under the provisions of § 45-13-5.1 are eligible for state

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reimbursement pursuant to subsection (c) of this section, provided, that these properties were

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revalued as part of that city or town’s most recent property revaluation.

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     (f) No city or town is required to conduct an update pursuant to this section unless the state

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has appropriated sufficient funds to cover the state’s costs as identified in subsection (c) of this

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section.

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     (g) Any city or town that fails to conduct an update or revaluation as required by this

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section, or requests and receives an extension of the dates specified in this section, shall receive the

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same amount of state aid under §§ 45-13-1, 45-13-5.1, and 45-13-12 in the budget year for which

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the new values were to apply as the city or town received in state aid in the previous budget year;

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provided, however, if the new year’s entitlement is lower than the prior year’s entitlement, the

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lower amount applies, except for the town of New Shoreham for the fiscal year 2003.

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     (h) Any bill or resolution to extend the dates for a city or town to conduct an update or

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revaluation must be approved by a two-thirds (⅔) majority of both houses of the general assembly.

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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 place a cap of twenty percent (20%) on increases in consecutive

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revaluations of real property in all cities and towns conducting revaluations commencing December

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31, 2023, and every December 31 thereafter.

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     This act would take effect upon passage.

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