2023 -- H 5448 | |
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LC001332 | |
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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 | |
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Introduced By: Representative Tina L. Spears | |
Date Introduced: February 08, 2023 | |
Referred To: House Municipal Government & Housing | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 44-5-11.8 of the General Laws in Chapter 44-5 entitled "Levy and |
2 | Assessment of Local Taxes" is hereby amended to read as follows: |
3 | 44-5-11.8. Tax classification. |
4 | (a) Upon the completion of any comprehensive revaluation or any update, in accordance |
5 | with § 44-5-11.6, any city or town may adopt a tax classification plan, by ordinance, with the |
6 | following limitations: |
7 | (1) The designated classes of property shall be limited to the classes as defined in |
8 | subsection (b) of this section. |
9 | (2) The effective tax rate applicable to any class, excluding class 4, shall not exceed by |
10 | fifty percent (50%) the rate applicable to any other class, except in the city of Providence and the |
11 | town of Glocester and the town of East Greenwich; however, in the year following a revaluation or |
12 | statistical revaluation or update, the city or town council of any municipality may, by ordinance, |
13 | adopt tax rates for the property class for all ratable tangible personal property no greater than twice |
14 | the rate applicable to any other class, provided that the municipality documents to, and receives |
15 | written approval from, the office of municipal affairs that the rate difference is necessary to ensure |
16 | that the estimated tax levy on the property class for all ratable tangible personal property is not |
17 | reduced from the prior year as a result of the revaluation or statistical revaluation. |
18 | (3) Any tax rate changes from one year to the next shall be applied such that the same |
19 | percentage rate change is applicable to all classes, excluding class 4, except in the city of |
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1 | Providence and the town of Glocester and the town of East Greenwich. |
2 | (4) Notwithstanding subsections (a)(2) and (a)(3) of this section, the tax rates applicable to |
3 | wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are |
4 | governed by § 44-3-29.1. |
5 | (5) The tax rates applicable to motor vehicles within Class 4, as defined in subsection (b) |
6 | of this section, are governed by § 44-34.1-1. |
7 | (6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure |
8 | apply to the reporting of, and compliance with, these classification restrictions. |
9 | (b) Classes of property. |
10 | (1) Class 1: Residential real estate consisting of no more than five (5) dwelling units; land |
11 | classified as open space; and dwellings on leased land including mobile homes. In the city of |
12 | Providence, this class may also include residential properties containing partial commercial or |
13 | business uses and residential real estate of more than five (5) dwelling units. |
14 | (i) A homestead exemption provision is also authorized within this class; provided |
15 | however, that the actual, effective rate applicable to property qualifying for this exemption shall be |
16 | construed as the standard rate for this class against which the maximum rate applicable to another |
17 | class shall be determined, except in the town of Glocester and the city of Providence. |
18 | (ii) In lieu of a homestead exemption, any city or town may divide this class into non- |
19 | owner and owner-occupied property and adopt separate tax rates in compliance with the within tax |
20 | rate restrictions. |
21 | (2) Class 2: Commercial and industrial real estate; residential properties containing partial |
22 | commercial or business uses; and residential real estate of more than five (5) dwelling units. In the |
23 | city of Providence, properties containing partial commercial or business uses and residential real |
24 | estate of more than five (5) dwelling units may be included in Class 1. |
25 | (3) Class 3: All ratable, tangible personal property. |
26 | (4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of |
27 | this title. |
28 | (c) The city council of the city of Providence and the town council of the town of Glocester |
29 | and the town council of the town of East Greenwich may, by ordinance, provide for, and adopt, a |
30 | tax rate on various classes as they shall deem appropriate. Provided, that the tax rate for Class 2 |
31 | shall not be more than two (2) times the tax rate of Class 1 and the tax rate applicable to Class 3 |
32 | shall not exceed the tax rate of Class 1 by more than two hundred percent (200%). Glocester shall |
33 | be able to establish homestead exemptions up to fifty percent (50%) of value and the calculation |
34 | provided in subsection (b)(1)(i) shall not be used in setting the differential tax rates. |
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1 | (d) Notwithstanding the provisions of subsection (a) of this section, the town council of the |
2 | town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with |
3 | the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or |
4 | after the assessment date of December 31, 2002. |
5 | (e) Notwithstanding the provisions of subsection (a) of this section, the town council of the |
6 | town of Little Compton may hereafter, by ordinance, adopt a tax classification plan in accordance |
7 | with the provisions of subsections (a) and (b) of this section and the provisions of § 44-5-79, to be |
8 | applicable to taxes assessed on or after the assessment date of December 31, 2004. |
9 | (f) Notwithstanding the provisions of subsection (a) of this section, the town council of the |
10 | town of Scituate may hereafter, by ordinance, change its tax assessment from fifty percent (50%) |
11 | of value to one hundred percent (100%) of value on residential and commercial/industrial/mixed- |
12 | use property, while tangible property is assessed at one hundred percent (100%) of cost, less |
13 | depreciation; provided, however, the tax rate for Class 3 (tangible) property shall not exceed the |
14 | tax rate for Class 1 (residential) property by more than two hundred thirteen percent (213%). This |
15 | provision shall apply whether or not the fiscal year is also a revaluation year. |
16 | (g) Notwithstanding the provisions of subsections (a) and (b) of this section, the town |
17 | council of the town of Coventry may hereafter, by ordinance, adopt a tax classification plan |
18 | providing that Class 1, as set forth in subsection (b) “Classes of Property” of this section, may also |
19 | include residential properties containing commercial or business uses, such ordinance to be |
20 | applicable to taxes assessed on or after the assessment date of December 31, 2014. |
21 | (h) Notwithstanding the provisions of subsection (a) of this section, the town council of the |
22 | town of East Greenwich may hereafter, by ordinance, adopt a tax classification plan in accordance |
23 | with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on |
24 | or after the assessment date of December 31, 2018. Further, the East Greenwich town council may |
25 | adopt, repeal, or modify that tax classification plan for any tax year thereafter, notwithstanding the |
26 | provisions of subsection (a) of this section. |
27 | (i) Notwithstanding the provisions of subsection (a) of this section, the town council of the |
28 | town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with |
29 | the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or |
30 | after the assessment date of December 31, 2022. |
31 | (j) Notwithstanding the provisions of subsection (a) of this section, the town council of the |
32 | town of New Shoreham may hereafter, by ordinance, adopt a tax classification plan in accordance |
33 | with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on |
34 | or after the assessment date of December 31, 2023. |
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1 | SECTION 2. This act shall take effect upon passage. |
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LC001332 | |
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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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1 | This act would allow the town council of New Shoreham to adopt a tax classification plan |
2 | in accordance with the provisions of this section, to be applicable to taxes on or after the assessment |
3 | date of December 31, 2023. |
4 | This act would take effect upon passage. |
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LC001332 | |
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