Chapter 302

2006 -- S 3016 SUBSTITUTE B

Enacted 07/04/06

A N A C T

RELATING TO TAXATION - HISTORIC STRUCTURES

Introduced By: Senator Walter S. Felag

Date Introduced: April 12, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-4.1-2, 44-4.1-3, 44-4.1-4, 44-4.1-5 and 44-4.1-6 of the General

Laws in Chapter 44-4.1 entitled "Historic Residence - Tax Credit" are hereby amended to read as

follows:

44-4.1-2. Definitions. -- As used in this chapter:

      (1) "Certified maintenance or rehabilitation" means any maintenance or rehabilitation of

a historic residence consistent with the character of that property or district as determined in

accordance with commission guidelines.

      (2) "Commission" means the Rhode Island historical preservation and heritage

commission created pursuant to section 42-45-2., or for purposes of the historic commercial

structure property tax reduction in Warren, the local historic district commission in Warren.

      (3) "Historic residence" means a historic residential property which is not of a character

subject to federal depreciation allowance pursuant to 26 U.S.C. section 167 or 168 and which is:

      (i) Listed individually in the state register of historic places; or

      (ii) Located in a district listed in the state register of historic places and certified by the

commission as contributing to the historic character of that district; or

      (iii) Located in a local historic district zone as designated by a city or town under chapter

24.1 of title 45 and certified by the commission as contributing to the character of that historic

district zone; or

      (iv) Designated by a city or town as an individual structure subject to regulation by a

local historic district commission under chapter 24.1 of title 45.

(4) "Historic Commercial Structure" means: a historic structure in Warren utilized for

commercial purposes, whole or in part, which is not of a character subject to federal depreciation

allowance pursuant to 26 U.S.C. section 167 or 168 and which is:

(i) Listed individually in the state register of historic places; or

(ii) Located in a district listed in the state register of historic places and certified by the

commission as contributing to the historic character of that district; or

(iii) Located in a local historic district zone as designated by the town under chapter 24.1

of title 45 and certified by the commission as contributing to the character of that historic district

zone; or

(iv) Designated by the town as an individual structure subject to regulation by a local

historic district commission under chapter 24.1 of title 45.

44-4.1-3. Property tax reduction. -- (a) Each city or town may, by ordinance, provide

up to twenty percent (20%) reduction in property tax liability for a period of up to five (5) years

to an owner of a historic residence who incurs substantial maintenance or rehabilitation costs;

provided, however, that

      (b) Warren. - The town council of the town of Warren may, by ordinance, increase the

time period for the reduction in property tax liability up to nine (9) years to an owner of an

historic residence who incurs substantial maintenance or rehabilitation costs. and to the owner of

a historic commercial structure, with a value not to exceed one million dollars ($1,000,000) who

incurs substantial maintenance or rehabilitation costs for the building's exterior or structural

features.

(c) The town or city may elect to provide the reduction to any contributing property listed

on the state register of historic places, or to any property covered by chapter 24.1 of title 45, or to

both. Each city or town shall establish a minimum dollar amount above which an owner must

spend in order to qualify for the property tax reduction.

44-4.1-4. Completion -- Certification. -- Upon completion of maintenance or

rehabilitation for which the owner of a historic residence, or historic commercial structure, seeks

property tax reduction, the owner shall apply to the local tax assessor for relief under this chapter.

Upon receiving the application, the city or town tax assessor shall notify the commission. The

commission shall inspect the maintenance or rehabilitation of the historic residence, or historic

commercial structure, and make a recommendation to the tax assessor who shall certify if it

complies with the commission guidelines. The commission may establish a schedule of

reasonable fees for the processing of inspection of maintenance and rehabilitation. The property

tax reduction commences in the year that the inspection certifies approval of the maintenance or

rehabilitation. An owner who receives a property tax reduction pursuant to this chapter shall,

upon completion of further maintenance or rehabilitation, which again fulfills the necessary

requirements of this chapter, receive a new five (5) year property tax reduction commencing on

approval of the most recent application.

44-4.1-5. Restrictive covenant required. -- No historic residence, or historic

commercial structure, maintained or rehabilitated may benefit from the provisions of this chapter

unless the owner of the historic residence, or historic commercial structure, grants a restrictive

covenant to the commission, agreeing that the historic residence, or historic commercial structure,

shall retain its use and be maintained in a manner which preserves the historic character of the

historic residence's residence or historic commercial structure's rehabilitated portions and the

historic residence's historic character for a period equal to the length of the property tax reduction

or until title to the property is transferred.

44-4.1-6. Forfeiture. -- In the event of the failure of the owner to keep the property

nondepreciable or to maintain the property according to the commission's guidelines during the

period of the tax reduction, the owner forfeits the property tax reduction retroactive to the date the

reduction commenced. All differences in the amount of taxes that were paid and those that would

have been due but for the reduction are payable together with interest of twelve percent (12%) per

annum from the dates that the payments would have been due and are a lien against the historic

residence. If the property is transferred to a new owner within the period that the tax reduction

applies, the original owner similarly forfeits the tax reduction tax reduction shall cease, and not

be applied to the new owner.

     SECTION 2. This act shall take effect upon passage.

=======

LC02979/SUB B

=======