2023 -- H 5288

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LC000819

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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 -- PROPERTY SUBJECT TO TAXATION

     Introduced By: Representatives Voas, Ackerman, Marszalkowski, Phillips, Alzate,
Giraldo, Potter, Solomon, and Baginski

     Date Introduced: February 01, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is

hereby amended by adding thereto the following section:

     44-3-9.12. Exemption or stabilizing of taxes on qualifying property used for

manufacturing, commercial, residential or mixed-use purposes.

     (a)(1) Except as provided in this section, the town council of the town of Cumberland may

vote to authorize, for a period not to exceed twenty (20) years, and subject to the conditions as

provided in this section, to exempt from payment, in whole or in part, real and personal property

which has undergone environmental remediation, is historically preserved, or is used for affordable

housing, manufacturing, commercial, residential, or mixed-use purposes, or to determine a

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

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

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

determines that:

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

by reason of:

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

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

     (B) The willingness of a manufacturing or commercial firm or concern to expand facilities

with an increase in employment or the willingness of a commercial or manufacturing concern to

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

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

economic benefit to the town and state; or

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

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

or

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

by reason of the willingness of a manufacturing, commercial, residential or mixed-use firm or

property owner to construct new or replace, reconstruct, expand, or remodel existing buildings,

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

or equipment resulting in an increase in plant, commercial, residential housing or mixed-use

building investment by the firm or property owner in the town.

     (2) Provided that should the town council make the determination in subsection (a)(1)(i)(B)

of this section, any exemption or stabilization may be granted as to new buildings, fixtures,

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

existing building, fixtures, machinery and equipment for existing employers in the town.

     (b) For purposes of this section, “real property used for manufacturing, commercial,

residential or mixed-use purposes” includes any building or structure used for manufacturing,

offices, commercial enterprises, and/or residential housing including, without limitation, any

building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used

for service industries, or used for any other commercial or manufacturing business, residential

housing , including mixed-use, and the land on which any such building or structure is situated.

     (c) For purposes of this section, “personal property used for manufacturing, commercial or

mixed-use purposes” means any property owned by a firm or concern occupying a building,

structure, and/or land used for commercial or mixed-use purposes and used by such firm or property

owner in its manufacturing, commercial or mixed-use enterprise including, without limitation, real

property and personal property including furniture, fixtures, equipment, machinery, stock in trade,

and inventory.

     (d) Except as provided in this section, real and personal property, the payment of taxes on

which has been so exempted or that is subject to the payment of a stabilized amount of taxes, shall

not, during the period for which the exemption or stabilization of the amount of taxes is granted,

be further liable to taxation by the town in which the property is located so long as the property is

used for the manufacturing, commercial, residential or mixed-use purposes for which the

exemption or stabilized amount of taxes was made.

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     (e) Notwithstanding any vote and findings by the town council, the property shall be

assessed for and shall pay that portion of the tax, if any, assessed by the town of Cumberland for

the purpose of paying the indebtedness of the town and the indebtedness of the state or any political

subdivision of the state to the extent assessed upon or apportioned to the town, and the interest on

the indebtedness, and for appropriation to any sinking fund of the town, which portion of the tax

shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and

used only for that purpose.

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

agreements pursuant to subsection (a) of this section.

     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 authorize the town of Cumberland to exempt from taxation or determine a

stabilized amount of taxes to be paid for real and personal property, located in the town of

Cumberland, which has undergone environmental remediation, is historically preserved, or is used

for affordable housing, manufacturing, commercial, residential, or mixed-use purposes.

     This act would take effect upon passage.

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