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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

     

     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:

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

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

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

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

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

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

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limitations:

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

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subsection (b).

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

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

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

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

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

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

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is applicable to all classes.

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

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

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

 

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

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

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

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     (b) Classes of Property.

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

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

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

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

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

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

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

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

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

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

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this title.

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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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

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

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

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

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

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     This act would take effect upon passage.

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