Chapter 247

2013 -- H 6294

Enacted 07/15/13

 

A N A C T

RELATING TO "AN ACT RELATING TO TAX EXEMPTION OF CERTAIN PROPERTY IN THE TOWN OF RICHMOND"

          

     Introduced By: Representative Larry Valencia

     Date Introduced: June 26, 2013

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Section 1 of Chapter 112 of the Public Laws of 2005, January session,

entitled "An Act Relating to Tax Exemption of Certain Property in the Town of Richmond", is

hereby amended to read as follows:

 

     Section 1. (A) In order to encourage, maintain, and preserve a sustainable supply of

owner-occupied housing that is affordable to low and moderate income older people and totally

disabled people, the town council of Richmond may, by ordinance, grant to every person who is a

citizen and resident of the town, and who is sixty-five (65) or more years of age, or is less than

sixty-five (65) years of age and totally disabled, and is residing in the town in a dwelling house or

mobile home that has been owned by him or her for one year before the date of the assessment

has been a resident of Richmond for three (3) years and has owned a home in Richmond for three

(3) years before the year for which the exemption is claimed, on proper claim being made

therefor, a tax exemption proportionate to total gross household income.

     (B) An ordinance enacted pursuant to this act shall provide a schedule of tax exemptions

of sixty percent (60%) or less, for total gross household incomes of $9,346 or more. The town

council shall have the authority to adjust the schedule annually, by amendment to said ordinance,

to accommodate changing economic conditions, including, but not limited to, changes in the

national cost of living index.

     (C) The word "income" as used herein means the aggregate income of the property owner

and all persons living with him or her in the household, from whatever source derived, including,

but not limited to, realized capital gains, gifts, and, in their entirety, pensions, annuities,

retirement benefits, and social security benefits. Income shall be based on the calendar year

preceding the year for which the exemption is claimed total funds received from any source by

the property owner and all other persons living in the household during the calendar year

preceding the year for which the exemption is claimed. The funds may be taxable or nontaxable

and may be from any source, including, but not limited to, wages, salary, and tips; business

income; farm income; dividends, interest, and realized capital gains; pensions, annuities, and

retirement benefits; social security benefits; disability benefits; unemployment benefits,

temporary disability insurance benefits or workers' compensation benefits; estate or trust income;

cash public assistance payments; alimony and child support; monetary gifts; and military income

and cash benefits.

     (D) The word "resident" as used herein means a person whose legal domicile is in

Richmond. A legal domicile is the permanent home to which, upon temporary absence, a person

intends to return. A person can have more than one residence but only one legal domicile. A

temporary or seasonal residence is not a legal domicile.

     (E) The words "totally disabled" as used herein mean a person has been determined by

the social security administration to be one hundred percent (100%) disabled and is eligible for

disability benefits under the federal social security act.

     (D)(F) The ordinance shall provide that the exemption shall be available only to owner-

occupants. Only one exemption shall be granted for each residential property, even if more than

one eligible person is an owner who resides there.

     (E)(G) The ordinance shall provide that the exemption is available annually, upon timely

application, to persons who have reached their sixth-fifth (65th) birthday by December 31 of the

calendar year preceding the year for which the exemption is claimed or to persons who are totally

disabled, and that the tax assessor shall be authorized to require whatever documentation he or

she deems reasonably necessary to verify eligibility. Applications shall be made on or before

April 15 of each year for which the exemption is claimed.

     (F)(H) The ordinance shall provide that no income-bearing property, business property,

or combination business and residential property shall be entitled to the exemption; provided,

however, that the owner of a two-household dwelling who is otherwise entitled to an exemption

shall receive an exemption in proportion to the area occupied by the owner, and the rental income

from the second dwelling unit shall not be considered income for eligibility purposes. The

exemption shall apply to any owner-occupied dwelling unit, including, but not limited to, single-

family houses, condominium apartments and cooperative apartments. If the dwelling unit

occupies only part of a building, the exemption shall be in proportion to the area devoted to the

owner's dwelling unit. Professional persons who conduct their profession from their residence

shall not be entitled to an exemption.

     (G)(I) The ordinance shall provide that property shall not be eligible for a tax exemption

if it has been conveyed to the applicant solely for the purpose of evading taxation. If a property

owner is determined to have received a tax exemption through fraudulent transfer of the property

or through false or misleading statements on a tax exemption application form, the assessor shall

have the authority to record a lien on the property in the land evidence records for the amount of

tax that should have been paid to the town.

     (J) The ordinance shall provide that each exemption shall become effective upon the tax

assessor's certification of the tax roll for the tax year for which the exemption is claimed, and

shall apply to the tax for that year. If the property owner becomes ineligible for the exemption

after certification of the tax roll and before the taxes for the year are paid in full, the tax assessor

shall have the authority to adjust the amount of the tax due on the property and issue a prorated

bill.

     (H)(K) Nothing contained herein or in an ordinance enacted pursuant to the authority

herein shall abrogate the authority conferred on the tax assessor by Rhode Island general laws

section 44-3-3(16).

 

     SECTION 2. The question of acceptance or rejection of this act shall be submitted to the

qualified electors of Richmond who are entitled to vote upon a proposition to impose a tax or

expend money, at any annual or special financial town meeting during 2013. Said vote shall be

taken by standing vote or by paper ballot. Acceptance of this act shall be by majority vote. Any

action taken in the year 2013 at an annual or special financial town meeting shall be as valid as if

this act were in effect at the time the warrant for said town meeting was published and at the time

said annual or special financial town meeting took place, and any ordinance enacted pursuant to

this act shall apply to any application for exemption filed during 2013. After said financial town

meeting, the town clerk shall forthwith certify to the secretary of state the result of the vote.

 

     SECTION 3. This section and Section 2 of this act shall take effect upon passage, and the

remaining section shall take effect upon approval by the qualified electors of Richmond.

     

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LC02845

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