Chapter 348

2006 -- S 2935

Enacted 07/07/06

 

A N  A C T

RELATING TO TAXATION

          

     Introduced By: Senators Connors, Badeau, and Issa

     Date Introduced: March 15, 2006

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

adding thereto the following chapter:

 

     CHAPTER 33.4

CUMBERLAND SENIOR RESIDENT PROPERTY TAX SERVICES CREDIT PROGRAM

 

     44-33.4-1. Program established. -- A senior resident property tax service credit program

is hereby established, commencing on July 1, 2006, to allow qualified senior residents, as

determined by the provisions of this act, to receive limited real estate tax credits in exchange for

services provided to the town of Cumberland municipal government, as described in this act.

 

     44-33.4-2. Age and income limits. -- Taxpayers qualifying for a senior resident property

tax service must be sixty-five (65) years of age or older by July 1, 2006 to earn property tax credit

relief under this program. The taxpayers must reside at the property as a full-time resident or

residents, and have a gross annual income from all sources at or below the low income level for

Providence County for the previous calendar year as published by the U.S. Department of

Housing and Urban Development for a two (2) person household for jointly held property, or in

the case of a single person, at or below the published level as aforementioned for a one-person

household.

 

     44-33.4-3. Ownership. -- The taxpayer or taxpayers applying for the senior resident

property tax service credit program must be the owner of the respective real estate to which the

credit will apply. If the property is held in trust, the beneficiary or beneficiaries of the trust must

be the taxpayer or taxpayers applying for the senior resident property tax service credit program.

 

     44-33.4-4. Maximum abatement and hourly rate. -- The maximum credit taxpayers

may earn is five hundred dollars ($500) per fiscal year. Credit for service will be at the state of

Rhode Island hourly minimum wage at the time the service is performed.

 

     44-33.4-5. Personal exemptions and deferrals. -- Taxpayers may earn tax credits under

the service credit program in addition to any property tax exemptions for which they may be

eligible under any provision of the general or public law, or town of Cumberland ordinances.

 

     44-33.4-6. Adoption of local program rules. -- The Cumberland mayor may establish

rules and procedures for the senior property tax service credit program. These rules and

procedures will assure coordination of the assignment of program participants to the various

municipal departments where they will perform their services.

 

     44-33.4-7. Certification of service. -- The board, officer or department supervising the

senior taxpayer's service must certify to the assessor the hours of service performed by the

taxpayer and must be received by the tax assessor by March 31st of each year.

 

     44-33.4-8. Status of volunteers. -- Senior taxpayers performing services for the town of

Cumberland government in return for property tax reductions shall be considered employees for

the purposes of municipal tort liability. The town of Cumberland may be liable for damages for

injuries to third-parties and for indemnification of the seniors only to the same extent as they are

in the case of injuries caused by regular municipal employees.

 

     44-33.4-9. Taxation on services prohibited. -- In no instance shall the amount by which

a person's property tax liability is reduced in exchange for the provision of services provided

herein, be considered income, wages or employment for the purposes of taxation, for the purposes

of withholding taxes, for the purposes of unemployment insurance, for the purposes of workers'

compensation, or any other applicable provisions of the Rhode Island general laws.

 

     SECTION 2. This act shall take effect upon passage.

     

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LC02774

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