Chapter 006
2015 -- S 0028
Enacted 03/19/2015

A N   A C T
RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES -- COVENTRY

Introduced By: Senators Raptakis, and Kettle
Date Introduced: January 13, 2015

It is enacted by the General Assembly as follows:
     SECTION 1. Section 44-5-11.8 of the General Laws in Chapter 44-5 entitled "Levy and
Assessment of Local Taxes" is hereby amended to read as follows:
     44-5-11.8. Tax classification. -- (a) Upon the completion of any comprehensive
revaluation or any update, in accordance with § 44-5-11.6, any city or town may adopt a tax
classification plan, by ordinance, with the following limitations:
      (1) The designated classes of property shall be limited to the classes as defined in
subsection (b) of this section.
      (2) The effective tax rate applicable to any class, excluding class 4, shall not exceed by
fifty percent (50%) the rate applicable to any other class, except in the city of Providence, and the
town of Glocester; however, in the year following a revaluation or statistical revaluation or
update, the city or town council of any municipality may, by ordinance, adopt tax rates for the
property class for all ratable tangible personal property no greater than twice the rate applicable to
any other class, provided that the municipality documents to, and receives written approval from,
the office of municipal affairs that the rate difference is necessary to ensure that the estimated tax
levy on the property class for all ratable tangible personal property is not reduced from the prior
year as a result of the revaluation or statistical revaluation.
      (3) Any tax rate changes from one year to the next shall be applied such that the same
percentage rate change is applicable to all classes, excluding class 4, except in the city of
Providence and the town of Glocester.
      (4) Notwithstanding subdivisions (2) and (3) of this subsection, the tax rates applicable
to wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are
governed by § 44-3-29.1.
      (5) The tax rates applicable to motor vehicles within Class 4, as defined in subsection (b)
of this section, are governed by § 44-34.1-1.
      (6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure
applyies to the reporting of, and compliance with, these classification restrictions.
      (b) Classes of Property.
      (1) Class 1: Residential real estate consisting of no more than five (5) dwelling units,;
land classified as open space,; and dwellings on leased land including mobile homes. In the city
of Providence, this class may also include residential properties containing partial commercial or
business uses and residential real estate of more than five (5) dwelling units.
      (i) A homestead exemption provision is also authorized within this class; provided
however, that the actual, effective rate applicable to property qualifying for this exemption shall
be construed as the standard rate for this class against which the maximum rate applicable to
another class shall be determined, except in the town of Glocester.
      (ii) In lieu of a homestead exemption, any city or town may divide this class into non-
owner and owner-occupied property, and adopt separate tax rates in compliance with the within
tax rate restrictions.
      (2) Class 2: Commercial and industrial real estate,; residential properties containing
partial commercial or business uses,; and residential real estate of more than five (5) dwelling
units. In the city of Providence, properties containing partial commercial or business uses and
residential real estate of more than five (5) dwelling units may be included in Class 1.
      (3) Class 3: All ratable, tangible personal property.
      (4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of
this title.
      (c) The city council of the city of Providence and the town council of the town of
Glocester may, by ordinance, provide for, and adopt, a tax rate on various classes as they shall
deem appropriate. Provided, that the tax rate for Class 2 shall not be more than two (2) times the
tax rate of Class 1; the tax rate applicable to Class 3 shall not exceed the tax rate of Class 1 by
more than two hundred percent (200%). Glocester shall be able to establish homestead
exemptions up to fifty percent (50%) of value and the calculation provided in subsection (b)(1)(i)
shall not be used in setting the differential tax rates.
      (d) Notwithstanding the provisions of subsection (a) of this section, the town council of
the town of Middletown may hereafter, by ordinance, adopt a tax classification plan in
accordance with the provisions of subsections (a) and (b) of this section, to be applicable to taxes
assessed on or after the assessment date of December 31, 2002.
      (e) Notwithstanding the provisions of subsection (a) of this section, the town council of
the town of Little Compton may hereafter, by ordinance, adopt a tax classification plan in
accordance with the provisions of subsections (a) and (b) of this section and the provisions of §
44-5-79, to be applicable to taxes assessed on or after the assessment date of December 31, 2004.
      (f) Notwithstanding the provisions of subsection (a) of this section, the town council of
the town of Scituate may hereafter, by ordinance, change its tax assessment from fifty percent
(50%) of value to one hundred percent (100%) of value on residential and
commercial/industrial/mixed-use property, while tangible property is assessed at one hundred
percent (100%) of cost, less depreciation; provided, however, the tax rate for Class 3 (tangible)
property shall not exceed the tax rate for Class 1 (residential) property by more than two hundred
thirteen percent (213%). This provision shall apply whether or not the fiscal year is also a
revaluation year.
     (g) Notwithstanding the provisions of subsections (a) and (b) of this section, the town
council of the town of Coventry may hereafter, by ordinance, adopt a tax classification plan
providing that Class 1, as set forth in subsection (b) “Classes of Property” of this section, may
also include residential properties containing commercial or business uses, such ordinance to be
applicable to taxes assessed on or after the assessment date of December 31, 2014.
     SECTION 2. This act shall take effect upon passage.
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LC000321
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