2023 -- H 5753

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LC001666

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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 -- SMALL BUSINESS TANGIBLE PROPERTY TAX RELIEF

ACT

     

     Introduced By: Representatives Rea, Costantino, Edwards, Casey, Chippendale, Hull,
Roberts, Fellela, and Place

     Date Introduced: February 21, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

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adding thereto the following chapter:

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CHAPTER 5.3

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SMALL BUSINESS TANGIBLE PROPERTY TAX RELIEF ACT

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     44-5.3-1. Statewide tangible property tax exemption.

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     (a) Notwithstanding the provisions of chapter 5 of this title or any other provisions to the

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contrary, in an effort to provide relief for small businesses, and to promote economic development,

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all ratable, tangible personal property not otherwise exempt from taxation shall be exempt from

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taxation up to two hundred fifty thousand dollars ($250,000) of assessed value.

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     (b) Cities, towns and fire districts may increase the rate of tax on tangible personal property

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assessed in excess of two hundred fifty thousand dollars ($250,000), in order to recover the amount

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of lost tax revenues due to the exemption in subsection (a) of this section.

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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 -- SMALL BUSINESS TANGIBLE PROPERTY TAX RELIEF

ACT

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     This act would exempt from taxation the tangible personal property of small businesses up

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to two hundred fifty thousand dollars ($250,000) of assessed value. This act would also allow cities,

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towns, and fire districts to increase the tax rate on tangible personal property assessed in excess of

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two hundred fifty thousand dollars ($250,000) in order to recover the amount of lost tax revenues

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resulting from the exemption.

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     This act would take effect upon passage.

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