Chapter
04-011
2004 -- H 8460
Enacted 04/06/04
A N A C T
RELATING TO LEVY AND
ASSESSMENT OF LOCAL TAXES
Introduced By:
Representatives Mumford, Moffitt, Watson, Savage, and Williamson
Date
Introduced: April 27, 2004
It is enacted by the General
Assembly as follows:
SECTION
1. Section 44-5-11.8 of the General Laws in Chapter 44-5 entitled "Levy
and
Assessment of Local Taxes" is
hereby amended to read as follows:
44-5-11.8.
Tax classification. -- (a) Upon the completion of any comprehensive
revaluation or in the case of the
town of Cumberland, and the city of Cranston, and the town of
Scituate, any update, in accordance with section 44-5-11.6, any
city or town may adopt a tax
classification plan by ordinance
with the following limitations: (1) The designated classes of
property shall be limited to the
four classes as defined in subsection (b). (2) The effective tax rate
applicable to any class shall not
exceed by 50% the rate applicable to any other class. (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. (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 section 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 section
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) (i) Class
1: Residential real estate consisting of no more than five (5)
dwelling units, land classified as
open space, and dwellings on leased land including mobile
homes. In the city of Providence,
this class may also include residential properties containing
partial commercial or business uses
and residential real estate of more than five (5) dwelling
units. 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. (ii) In
the city of Providence, the percentage reduction in valuation of
residential real estate shall apply
to residential real estate containing five (5) or less dwelling
units. In the case of multiple
dwellings containing more than five (5) dwelling units, the
percentage reduction in valuation
shall be applied to the result of dividing the assessed valuation
by the number of dwelling units in
the multiple dwelling and multiplying the quotient by five (5).
In the city of Providence, in order
to ensure compliance with the homestead exemption authorized
in this section, the city council
shall provide by resolution or ordinance rules and regulations
governing eligibility for the
homestead exemption. (2) Class 2: Commercial and industrial real
estate, residential properties
containing partial commercial or business uses and residential real
estate of more than five (5)
dwelling units. In the city of Providence, properties containing partial
commercial or business uses and
residential real estate of more than five (5) dwelling units may
be included in Class 1. (3) Class
3: All ratable tangible personal property. (4) Class 4: Motor
vehicles and trailers subject to
the excise tax created by chapter 34 of this title. (c)
Notwithstanding the provisions of
subsections (a)(2) and (a)(3), the city council of the city of
Providence may by resolution or
ordinance provide for and adopt a tax rate on Class 3, all ratable
tangible personal property, in
accordance with the following schedule:
Date
of Assessment Tax rate on all ratable tangible personal
property
shall not exceed the
percentages
as indicated below:
December
31, 2000 120% more than the effective tax rate
applicable
to any other class
December
31, 2001 106% more than the effective tax rate
applicable
to any other class
December
31, 2002 92% more than the effective tax rate
applicable
to any other class
December
31, 2003 78% more than the effective tax rate
applicable
to any other class
December
31, 2004 64% more than the effective tax rate
applicable
to any other class
December
31, 2005 50% more than the effective tax rate
applicable
to any other class
(d)
Notwithstanding the provisions of subsection (a) hereof the town council of the
town
of Middletown may hereafter, by
ordinance, adopt a tax classification plan in accordance with the
provisions of subsections (a)1-6
and (b)1-4 hereof, to be applicable to taxes assessed on or after
the assessment date of December 31,
2002.
SECTION
2. This act shall take effect upon passage.
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LC03252
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