Chapter
351
2006 -- S 2963
Enacted 07/07/06
A N A
C T
PERMITTING THE TOWN
OF SOUTH KINGSTOWN TO EXEMPT CERTAIN
PROPERTIES FROM
TAXATION
Introduced By: Senator V.
Susan Sosnowski
Date Introduced: March 23,
2006
It is enacted
by the General Assembly as follows:
SECTION
1. Chapter 44-3 of the General Laws entitled "Property Subject to
Taxation" is
hereby
amended by adding thereto the following section:
44-3-9.7.
South Kingstown -- Exemption or stabilization of tax on qualified property
used
for manufacturing or commercial purposes in the town of South Kingstown. – (a)
Except
as provided in this section, the town council of the town of South Kingstown
may vote to
authorize,
for a period not exceeding ten (10) years, and subject to the conditions
provided in this
section,
to exempt from payment, in whole or part, real and personal property used for
manufacturing
or commercial purposes, or to determine a stabilized amount of taxes to be paid
on
account
of the property, notwithstanding the valuation of the property or the rate of
tax; provided,
that
after public hearings, at least ten (10) days' notice of which shall be given
in a newspaper of
general
circulation in the town, the town council determines that:
(1)
Granting of the exemption or stabilization of taxes will inure to the benefit
of the
town
by reason of:
(i)
The willingness of the manufacturing or commercial concern to locate in the
town; or
(ii)
The willingness of a manufacturing firm to expand facilities with an increase
in
employment
or the willingness of a commercial or manufacturing concern to retain or expand
its
facility
in the town and not reduce its work force in the town; or
(iii)
An improvement of the physical plant of the town that will result in long-term
economic
benefits to the town and the state.
(2)
Granting of the exemption or stabilization of taxes will inure to the benefit
of the
town
by reason of the willingness of a manufacturing or commercial firm or concern
to replace,
reconstruct,
expand or remodel existing buildings, facilities, fixtures, machinery, or
equipment
with
modern buildings, facilities, fixtures, machinery, or equipment, resulting in
an increase in,
plant
or commercial building investment by the firm or concern in the town.
(b)
Should the town council make the determination in paragraphs (a)(1)(i) through
paragraphs
(a)(1)(iii), or subdivision (a)(2) of this section, an exemption or stabilization
may be
granted
for existing buildings, property, machinery, or facilities owned by businesses
already
located
in the town of South Kingstown on January 1, 2006.
(c) For the purposes of this section, "real property used for
manufacturing or commercial
purposes"
includes any building or structure used for offices or commercial enterprises
including
without
limitation any building or structure used for wholesale, warehouse,
distribution, and/or
storage
business, used for service industries, or used for any other commercial
business and the
land
on which the building or structure is situated and not used for residential
purposes.
(d)
For purposes of this section, "personal property used for manufacturing or
commercial
purposes" means any personal property owned by a firm or concern occupying
a
building,
structure, and/or land used for commercial purposes and used by such firm or
concern in
its
commercial enterprise including, without limitation, furniture, fixtures,
equipment, machinery,
stock
in trade, and inventory.
(e)
Except as provided in this section, property for which taxes have been exempted
in
whole
or part, or stabilized pursuant to this section, shall not, during the period
for which taxes
have been
exempted or stabilized, be further liable to taxation by the town so long as
the property
is
used for the manufacturing or commercial purpose for which the exemption or
stabilization was
granted.
(f)
Notwithstanding any vote of, or findings by the town council, the property
shall be
assessed
for, and shall pay, that portion of the tax, if any, assessed by the town for
the purpose of
paying
the indebtedness of the town and the indebtedness of the state or any political
subdivision
of
the state, to the extent assessed upon or apportioned to the town, and the
interest on the
indebtedness,
and for appropriation to any sinking fund of the town, which portion of the tax
shall
be
paid in full, and the taxes so assessed and collected shall be kept in a
separate account and
used
only for that purpose.
(g)
Any application for tax exemption or stabilization submitted pursuant to this
section
shall
be submitted before an application for development plan review is submitted to
the South
Kingstown
planning board, as applicable, or for other such permits and/or approvals that
may be
required
from any other town board or commission.
(h)
Any tax exemption or stabilization granted by the town council pursuant to this
section
shall be applicable for a period beginning on the first day of the fiscal year
in which the
exemption
or stabilization is granted.
(i)
If a property owner whose property tax has been exempted or stabilized pursuant
to
this
section becomes delinquent in the payment of its property taxes, or transfers
ownership of its
business,
the town council shall have the authority to review and terminate the tax
exemption or
stabilization
agreement.
SECTION
2. This act shall take effect upon passage.
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LC02855
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