2023 -- S 0240 SUBSTITUTE A

========

LC001495/SUB A

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

____________

A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Senators Lawson, Britto, and Lauria

     Date Introduced: February 16, 2023

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-5-11.10 of the General Laws in Chapter 44-5 entitled "Levy and

Assessment of Local Taxes" is hereby amended to read as follows:

     44-5-11.10. Real estate tax classification — East Providence.

     Notwithstanding any provision within § 44-5-11.8 to the contrary:

     (a) Upon the completion of any comprehensive revaluation in accordance with § 44-5-11.6,

the city of East Providence may adopt a tax classification plan by ordinance with the following

limitations:

     (1) The designated classes of property shall be limited to the four (4) classes as defined in

subsection (b).

     (2) The tax rate applicable to any class Class 2 shall not exceed by two hundred percent

(200%) the rate applicable to any other class Class 1.

     (3) Any tax rate changes from one year to the next shall be applied such that the same

percentage rate change is applicable to all classes Beginning with the assessment date of December

31, 2022, and except in any year in which a comprehensive or statistical revaluation is completed,

any tax rate change from one year to the next shall be applied such that the same percentage change

is applicable to all classes.

     (4) Notwithstanding subdivisions (a)(2) and (a)(3), the tax rates applicable to wholesale

and retail inventory within Class 3 as defined in subsection (b) are governed by § 44-3-29.1.

     (5) Notwithstanding subdivisions (a)(2) and (a)(3), the tax rates applicable to motor

vehicles within Class 4 as defined in subsection (b) are governed by § 44-34.1-1.

     (6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure

applies to the reporting of and compliance with these classification restrictions.

     (b) Classes of Property.

     (1) Class 1: Residential real estate consisting of no more than three (3) dwelling units, land

classified as open space, and dwellings on leased land including mobile homes. A homestead

exemption provision is also authorized within this class; provided, however, that the actual effective

rate applicable to property qualifying for this exemption shall be construed as the standard rate for

this class against which the maximum rate applicable to another class shall be determined.

     (2) Class 2: Commercial and industrial real estate, residential properties containing partial

commercial or business uses and residential real estate of more than three (3) dwelling units.

     (3) Class 3: All ratable tangible personal property; excluding wholesale and retail

inventory, which shall be taxed in accordance with § 44-3-29.1.

     (4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of

this title.

     SECTION 2. This act shall take effect upon passage.

========

LC001495/SUB A

========

LC001495/SUB A - Page 2 of 2

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

***

     This act would allow the town of East Providence to adopt a new tax rate applicable to

Class 2 property that shall not exceed by two hundred percent (200%) the rate applicable to Class

1 property. This act would also require in any revaluation year, that any tax rate change be applied

at the same percentage rate change that is applicable to all classes.

     This act would take effect upon passage.

========

LC001495/SUB A

========

LC001495/SUB A - Page 3 of 2