Chapter 321

2004 -- H 8452 SUBSTITUTE A AS AMENDED

Enacted 07/03/04

 

A N A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

     

     

     Introduced By: Representatives Williamson, Landroche, and Murphy

     Date Introduced: April 22, 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 update or in the case of the town of Cumberland 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 fifty percent 50% the

rate applicable to any other class. ; however, in the year following a revaluation or statistical

revaluation or update, the city or town council of any municipality may, by ordinance, adopt tax

rates for the property class for all ratable tangible personal property no greater than twice the rate

applicable to any other class provided that the municipality documents to, and receives written

approval from the office of municipal affairs that the rate difference is necessary to ensure that

the estimated tax levy on the property class for all ratable tangible personal property is not

reduced from the prior year as a result of the revaluation or statistical revaluation.

     (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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LC03224/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

***

 

     This act would allow municipalities to adopt a tax rate for the property class for all

ratable tangible personal property at greater than fifty percent (50%) the rate applicable to any

other class in the year following a revaluation or statistical revaluation, or update provided that

the municipality receives approval from the office of municipal affairs.

     This act would take effect upon passage.

     

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LC03224/SUB A

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