Chapter
434
2006 -- H 6878 SUBSTITUTE A
Enacted 07/06/06
A N A C T
RELATING
TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
Introduced
By: Representative Carol A. Mumford
Date
Introduced: January 24, 2006
It is enacted by the General Assembly as
follows:
SECTION 1. Section
44-5-12 of the General Laws in Chapter 44-5 entitled "Levy and
Assessment of Local Taxes" is hereby
amended to read as follows:
44-5-12.
Assessment at full and fair cash value. -- (a) All real property
subject to
taxation shall be assessed at its full and fair
cash value, or at a uniform percentage of its value,
not to exceed one hundred percent (100%), to be
determined by the assessors in each town or
city; provided, that:
(1) Any residential
property encumbered by a covenant recorded in the land records in
favor of a governmental unit or Rhode Island
housing and mortgage finance corporation
restricting either or both the rents that may be
charged or the incomes of the occupants shall be
assessed and taxed in accordance with section
44-5-13.11;
(2) In assessing
real estate which is classified as farm land, forest, or open space land in
accordance with chapter 27 of this title the
assessors shall consider no factors in determining the
full and fair cash value of the real estate
other than those which relate to that use without regard
to neighborhood land use of a more intensive
nature;
(3) Warwick. -
The city council of the city of Warwick is authorized to provide, by
ordinance, that the owner of any dwelling of one
to three (3) family units in the city of Warwick
who makes any improvements or additions on his
or her principal place of residence in the
amount up to fifteen thousand dollars ($15,000),
as may be determined by the tax assessor of the
city of Warwick, is exempt from reassessment of
property taxes on the improvement or addition
until the next general citywide reevaluation of
property values by the tax assessor. For the
purposes of this section, "residence"
is defined as voting address. This exemption does not apply
to any commercial structure. The property owner
shall supply all necessary plans to the building
official for the improvements or addition and
shall pay all requisite building and other permitting
fees as now are required by law; and
(4) Central
Falls. - The city council of the city of Central Falls is authorized to
provide,
by ordinance, that the owner of any dwelling of
one to eight (8) units who makes any
improvements or additions to his or her
residential or rental property in an amount not to exceed
twenty thousand dollars ($20,000) as determined
by the tax assessor of the city of Central Falls is
exempt from reassessment of property taxes on
the improvement or addition until the next general
citywide reevaluation of property values by the
tax assessor. The property owner shall supply all
necessary plans to the building official for the
improvements or additions and shall pay all
requisite building and other permitting fees as
are now required by law.
(5) Tangible
property shall be assessed according to the asset classification table as
defined in section 44-5-12.1.
(b)
Municipalities shall make available to every land owner whose property is taxed
under the provisions of this section a document
which may be signed before a notary public
containing language to the effect that they are
aware of the additional taxes imposed by the
provisions of section 44-5-39 in the event that
they use land classified as farm, forest, or open
space land for another purpose.
(c) Pursuant to
the provisions of section 44-3-29.1, all wholesale and retail inventory
subject to taxation is assessed at its full and
fair cash value, or at a uniform percentage of its
value, not to exceed one hundred percent (100%),
for fiscal year 1999, by the assessors in each
town and city. Once the fiscal year 1999 value
of the inventory has been assessed, this value shall
not increase. The phase-out rate schedule
established in section 44-3-29.1(d) applies to this fixed
value in each year of the phase-out.
SECTION 2. Chapter
44-5 of the General Laws entitled "Levy and Assessment of Local
Taxes" is hereby amended by adding thereto
the following section:
44-5-12.1.
Assessment of tangible personal property. – (a) All tangible
personal
property subject to taxation shall be assessed
for taxation based on the original purchase price
(new or used) including all costs such as
freight and installation. Assets will be classified and
depreciated as defined in this section.
(b) The
following classification and depreciation table shall be used in determining
the
assessed value of tangible personal property.
State of Rhode Island
Tangible Property Classification
Class I Class II Class III
Class of
Assets Short Life
1-5 yrs Mid-Life 6-12 yrs Long Life 13+ yrs
Age Depreciation
Rate
1 95 95 95
2 80 90 90
3 60 80 85
4 30 70 80
5 20 60 75
6 20 50 70
7 20 40 65
8 20 30 60
9 20 30 55
10
20 30 50
11
20 30 45
12
20 30 40
13
20 30 35
14
20 30 30
15+
20
30 30
Assets Shall
Not be Trended
(c) Assets
shall be classified on an annual basis by the Rhode Island Association of
Assessing Officers' Personal Property Committee
based on the following table:
INDUSTRY GROUP
IN YEARS
CLASS
Aerospace
industry II
Agriculture
machinery and equipment II
cotton
ginning II
Aircraft and all
helicopters II
Amusement and
theme parks II
Apparel and
fabricated textile manufacturing II
Automobile
repair shops II
Bakeries and
confectionery production II
Barber and
beauty shops II
Billboards II
Brewery
equipment II
Cable
television, headend facilities II
microwave systems II
program origination II
service and test II
subscriber connection and
distribution II
Canneries and
frozen food production II
Cement
manufacture III
Chemical and
allied production II
Clay products
manufacturing III
Clocks and
watches, manufacturing II
electronic
instrumentation I
Cold storage
and ice-making equipment III
Cold storage
warehouse equipment
II
Computers,
personal computers (PC) I
mainframe I/II
peripherals I
Condiments,
manufacturing and processing II
Construction
equipment, general construction II
Dairy products
manufacturing II
Data handling
equipment, except computers II
Distilling II
Electrical
equipment manufacturing II
Electronic
companies, steam production III
other production, combined
cycle III
gas turbines III
nuclear production III
transmission III
distribution III
Electronic
equipment manufacturing I
Fabricated
metal products II
special tools I
Fishing
equipment, excluding boats and barges I
Food and
beverage production II
special handling devices I
Fur processing II
Gas
distribution, total distribution equipment III
Optional – for equipment by
category:
mains and services, plastic III
mains and services, steel
III
meters, regulators,
installations III
other distribution equipment III
Glass and glass
products II
special tools I
Grain and grain
mill products manufacture III
Gypsum products
III
Hand tools I
Hospital
furnishings and equipment II
Hotel and motel
furnishings and equipment II
Jewelry
products and pens II
Knitwear and
knit products I
Laundry
equipment II
Leather and
leather products II
Logging, timber
cutting I/II
Machinery
manufacturing, except, as otherwise listed II
Marine
construction II
Meatpacking II
Medical and
dental supply production II
Metalworking
machinery manufacturing II
Mining and
quarrying II
Motion picture
and television production II
Motor vehicle
and parts manufacturing II
special tools I
Office
furniture and equipment II
Optical lenses
and instrument manufacturing II
Paints and
varnishes I
Paper and pulp
manufacturing II
converted paper, paperboard and
pump II
Petroleum and
natural gas, drilling, onshore II
drilling, offshore II
exploration and production II
petroleum refining III
pipeline transportation III
Plastics
manufacturing I/II
Plastic products
manufacturing II
special tools I
Primary metals
production, nonferrous and foundry products III
special tools I
Primary steel
mill products III
Printing and publishing
II
Professional
and scientific instruments II
Professional and scientific
instruments II
Radio and
television, broadcasting I/II
Railroad
transportation equipment manufacturing II
locomotive manufacturing II
Recreation and
amusement II
Retail trades,
fixtures and equipment II
Residential
furniture II
Restaurant and
bar equipment II
Restaurant
equipment, fast foods II
Rubber products
manufacturing II
special tools I
Sawmills,
permanent II
portable I
Service
establishments II
Ship and boat
building machinery and equipment II
special tools I
Soft drink
manufacture and bottling II
Steam
production and distribution III
Stone products
manufacturing III
Sugar and sugar
products manufacturing III
Telecommunications,
local exchange
analog switching I/II
digital switching I/II
circuit, digital I/II
circuit, analog II
circuit, optic I/II
other central office equipment I/II
information/origination
equipment I/II
smart phones I
metallic cable II
fiber cable III
poles III
conduit III
Telecommunications,
interstate interexchange
analog switching I/II
digital switching I/II
metallic cable II
fiber cable III
poles III
conduit III
all other equipment I/II
Telecommunications,
cellular
analog switching I/II
digital switching I/II
radio frequency channel and
control I/II
power equipment II
antennae II
towers III
transmission equipment I/II
cellular phones I
Textile
products, including finishing and dyeing II
manufacture of nonwoven fabrics II
manufacture of yarn, thread and
woven fabrics II
manufacture of textured yarns II
Theater equipment II
Tobacco and
tobacco products III
Vegetable oil
products III
Waste reduction
and resource recovery II
Water
transportation III
vessels, barges and tugs III
Water utilities
III
Wharves, docks
and piers III
Wholesale trade
fixtures and equipment II
Wood products
and furniture manufacturing II
SECTION 3. This
act shall take effect upon passage.
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LC00846/SUB
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