Chapter 351

2008 -- S 3152

Enacted 07/08/08

A N A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

Introduced By: Senator Stephen D. Alves

Date Introduced: June 20, 2008

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

Taxes" is hereby amended by adding thereto the following section:

44-5-2.2. West Warwick -- Maximum levy. – (a) Findings – The general assembly

makes the following findings of fact:

(1) Various sections of several towns in the state, including, but not limited to, the town

of West Warwick, are deteriorated, blighted areas which have created very difficult challenges to

economic development;

(2) Several areas of the state are in a distressed financial condition as defined by Rhode

Island general laws subdivisions 45-13-13(b)(1) through (4) and cannot finance economic

development projects on its own without the participation of private enterprise;

(3) The general assembly has found that it is nearly impossible for private enterprise

alone to meet such challenges;

(4) In certain sections of financially distressed communities, the serious challenges of

economic development and/or redevelopment have not been met by private enterprise alone and

the impact is being felt throughout the community;

(5) Legislation enacted to encourage redevelopment of such deteriorated, blighted areas

of success in generating economic development through the formation of local redevelopment

agencies has had very limited success;

(6) A great deal of success in generating economic development has been realized by

exercising the authority to use tax incremental financing;

(7) Most recently, municipalities in our state have had great success in attracting large

commercial development, including financial services, manufacturing, and major energy

facilities, due in large part to the authority to exempt and/or stabilize property, tangible and/or

inventory taxes;

(8) Attracting large non-residential developments or encouraging expansion of existing

commercial entities can be extremely important to municipalities, where the quality of public

education is largely dependent on the local tax base, thereby expanding the commercial tax base

and reducing reliance upon the residential tax base;

(9) The ability to attract such development and increase the non-residential tax base, in

turn, improves municipalities' ability to finance school systems, municipal services and

infrastructure, thereby improving the quality of life;

(10) In addition to increasing the local non-residential tax base, such development creates

construction jobs, permanent jobs, and spurs additional investment by private enterprises; and

(11) Providing authority to offer tax increment areas will attract and assist in expanding,

revitalizing and redeveloping the tax base in our municipalities, thereby providing long-term

economic benefits and development.

(b) Notwithstanding any other provisions of this chapter, any tax increment generated

from a tax increment area designated by the town of West Warwick in connection with the

development and construction of a hotel/water park to be located in the West Warwick business

park and which is designated for infrastructure improvements or any current and/or future debt

service in accordance with the rules and regulations of the state department of revenue shall be

excluded from the maximum tax a city or town may levy pursuant to the provisions of section 44-

5-2 of the general laws.

     SECTION 2. This act shall take effect upon passage.

=======

LC03251

=======