2023 -- H 6014

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LC001916

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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 -- STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION

     

     Introduced By: Representatives Rea, Shallcross Smith, Chippendale, Newberry, Place,
Nardone, Sanchez, McNamara, Noret, and Cardillo

     Date Introduced: March 01, 2023

     Referred To: House Finance

     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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STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION

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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 businesses, including small businesses, and to promote

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economic development, all ratable, tangible personal property not otherwise exempt from taxation

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shall be exempt from taxation up to and including the amount of assessed value set forth in

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subsection (b) of this section.

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     (b) The exemption provided in subsection (a) of this section shall be up to and including

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the following amounts:

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     (1) Five thousand dollars ($5,000) for the tax year ending on December 31, 2024;

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     (2) Twenty thousand dollars ($20,000) for the tax year ending on December 31, 2025;

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     (3) Fifty thousand dollars ($50,000) for the tax year ending on December 31, 2026;

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     (4) One hundred thousand dollars ($100,000) for the tax year ending on December 31,

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2027;

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     (5) Two hundred fifty thousand dollars ($250,000) for the tax year ending on December

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31, 2028.

 

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     (c) Beginning in fiscal year 2025 and for each fiscal year through fiscal year 2029, cities,

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towns, and fire districts shall receive reimbursements, as set forth in this section, from state general

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revenues equal to the amount of lost tax revenues due to the reduction of the tangible property tax

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in the respective fiscal year as a result of the corresponding exemption set forth in subsections (a)

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and (b) of this section.

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     (d) Beginning in fiscal year 2029, all ratable, tangible personal property assessed at less

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than two hundred fifty thousand dollars ($250,000), shall be exempt from taxation.

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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 -- STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION

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     This act would phase in an exemption from taxation of all ratable, tangible personal

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property of businesses, up to a maximum assessed value of two hundred fifty thousand dollars

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($250,000), over a five (5) year period, at which time, the maximum exemption would become

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permanent. This act would also provide for cities, towns, and fire districts to receive reimbursement

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from state general revenues equal to the amount of lost tax revenues due to the exemption.

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     This act would take effect upon passage.

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