Chapter 121
2009 -- H 6022
Enacted 07/16/09
A N A C T
RELATING TO
LITTLE
Introduced By: Representative John J. Loughlin
Date
Introduced: March 25, 2009
It is enacted by the
General Assembly as follows:
SECTION 1. Section 8 of chapter 16 of the public laws of
1985 entitled "An Act
Establishing the Little
Compton Agricultural Conservancy Trust" as amended by chapter 510 of
the public laws of 1987, chapters 12 and 126 of the
public laws of 1999, and chapter 174 of the
public laws of 2002 is hereby further amended to read as
follows:
Section 8. The term "real property
interest" as used herein shall mean: any present or
future legal equitable interest in or to real property, and
any beneficial interest therein, including
the interest of any beneficiary in a trust which holds
any legal or equitable interest in real
property and the interest including stocks and bonds of any
corporation or limited liability
corporation in real property but shall not include any interest
which is limited to any or all of the
following: the dominant estate in any easement or right-of-way;
the right to enforce any
restriction; any estate at will or at sufferance, and estate for
years having a term of less than
fifteen (15) years; any reversionary right, condition, or
right of entry for condition broken; the
interest of a mortgage or other secured party in any mortgage
or security agreement.
Whenever
a tax is assessed by section 44-25-1 of the general laws on the transfer of a
real
property interest situated in Little Compton, there is
hereby imposed, in addition to said tax, an
additional tax not to exceed the amount of five (5%) percent of
that amount of the total purchase
price which exceeds one hundred fifty thousand
($150,000.00) dollars unless such rate or rates
and/or exemption amount are amended as provided for in
section 7 of this act. Said exemption
shall not be less than one hundred fifty thousand
($150,000.00) dollars.
As
used herein, the total purchase price shall mean the aggregate consideration
received
by a seller or sellers collectively for the transfer of
each recorded lot of real property, whether in a
single conveyance or in separate contemporaneous
conveyances, which transfer or transfers result
in the conveyance of either: (i)
the entire fee interest, or (ii) a lesser fee interest in the real
property including, without limitation, conservation easements
and development rights; and only
one hundred fifty thousand ($150,000.00) dollars (or
other greater amount if adopted by the
electors) exemption shall be applied to such transaction or
transactions conveying the entire fee
interest regardless of the number of deeds or other
instruments used to effectuate the transfer or
the number of buyers or sellers participating therein. If
something less than the entire fee interest
in conveyed, then the exemption shall be reduced
proportionately.
The
additional tax authorized by this section shall also be imposed on the
aggregate
consideration provided in exchange for a transfer of real property
interests held in the name of or
otherwise owned by: (1) A corporation, where there is a
transfer by the controlling stockholders
of their interest in the stock of the corporation; (2) A
limited liability corporation; (3) A trust; (4)
A person or persons or
entities with a property interest of a term of years or lease of property
greater than fifteen (15) years; and (5) A partnership when
there is a change in composition of
such partnership, either in one transaction, or in a
series of related transactions, which change in
composition results in a transfer of capital interest in excess
of fifty percent (50%) of the total
capital interest within such partnership or results in a transfer
of the ownership rights to interests
in excess of fifty percent (50%) of the total profit
interests within such partnership.
In
the case of real property interest in real property which is situated in
both Little
imposed on that portion of the purchase price, in relation to
what the current assessed values, as
determined by the Little Compton tax assessors and their
counterpart in the abutting town, bear to
the total sales price.
The
payment of the additional tax hereby imposed shall be evidenced by the affixing
of
documentary stamps, provided by the Little Compton town clerk's
office, to every original
instrument presented for recording in the same manner as set
forth in section 44-25-3 of said
general laws. Said tax shall be the obligation of the buyer
of real property unless otherwise agreed
to by the parties of the transfer.
SECTION 2. This section of the act shall take effect upon
passage of the act. The
remainder of this act shall take effect upon its approval by a
majority of those voting to approve
the act at an annual or special financial town meeting of
the town of
=======
LC02335
=======