Chapter 276
2004 -- H 8322 AS AMENDED
Enacted 07/02/04
A N A C T
RELATING
TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
Introduced
By: Representatives Moura, Slater, McCauley, Ajello, and Williams
Date
Introduced: March 18, 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, city of Providence, and the
city of
Cranston,
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, except in the city of Providence.
(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, except in the city of Providence.
(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,
except in the city of Providence.
(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 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: various
classes
as it shall deem appropriate. Providence shall be able to establish homestead
exemptions
up
to fifty percent (50%) of value. The calculation provided in subsection
(b)(1)(i) shall not be
used
in setting the differential tax rates. The tax rate for Class 2 shall not be
more than two (2) times
the
tax rate of Class 1; the tax rate applicable to Class 3 shall not exceed the
tax rate of Class 1 by
more
than two hundred percent (200%).
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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LC02954
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