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 sections:
{ADD 44-5-11.5. Legislative findings. -- ADD} {ADD It is hereby found and declared that:
(A)(1) Rhode Island property taxes continue to play a significant role in the financing of local educational and municipal services. The general assembly recognizes that the way the property tax is assessed, levied and collected can be improved to provide more reliable and up-to-date property values in each of the cities and towns.
(2) The state's ten year property revaluation cycle is the longest revaluation cycle in the country. Infrequent revaluations translate into disparities in property tax burden between types and classes of property within and among cities and towns. In addition, because each city and town represents multiple systems and procedures for administering the property tax, there is an inconsistent administration of property tax law and regulations.
(3) Therefore, it is the intent of the general assembly to ensure that all taxpayers in Rhode Island are treated equitably. The more frequent the revaluation, the greater the equity within and among jurisdictions. Ensuring that taxpayers are treated fairly begins with modernizing the administration of the property tax that ensures:
(a) Up-to-date property values are maintained through more frequent property revaluations;
(b) Cities and towns meet defined standards related to performing updates of property values;
(c) The state shares in the cost of performing updates of property values in the cities and towns;
(d) A meaningful and effective method of ensuring that cities and towns comply with the nine year revaluation cycle and the updates of property values are developed;
(e) Procedures for administering the property tax are standardized - such as general reporting and classification systems;
(f) Assessors and contracted property revaluation companies meet appropriate qualifications and standards; and
(g) Intergovernmental cooperation in the administration of the property tax is maximized.
(4) With these findings in mind, it is the intent of the general assembly to institute a revaluation cycle where every city or town shall conduct a revaluation within nine (9) years of the date of the prior revaluation and shall conduct an update of real property every three (3) years from the date of the last revaluation. ADD}
{ADD 44-5-11.6. Assessment of violations -- Apportionment of levies. -- ADD} {ADD (A) Notwithstanding the provisions of section 44-5-11, beginning on December 31, 2000, the assessors in the several towns and cities shall conduct an update as herein defined or shall assess all valuations and apportions the levy of all taxes legally ordered under the rules and regulations, not repugnant to law, as the town meetings and city councils, respectively shall from time to time prescribe; provided, that such update or valuation shall be performed in accordance with the following schedules:
(1) For a transition period, for cities and towns who conducted or implemented a revaluation as of 1993 or in years later: ADD}
| {ADD | Update | Revaluation | Lincoln | 2000 | 2003 | South Kingstown | 2000 | 2003 | Smithfield | 2000 | 2003 | West Warwick | 2000 | 2003 | Johnston | 2000 | 2003 | Burrillville | 2000 | 2003 | North Smithfield | 2000 | 2003 | Central Falls | 2000 | 2003 | North Kingstown | 2000 | 2003 | Jamestown | 2000 | 2003 | North Providence | 2001 | 2004 | Cumberland | 2001 | 2004 | Bristol | 2001 | 2004 | Charlestown | 2001 | 2004 | East Greenwich | 2002 | 2005 | Cranston | 2002 | 2005 | Barrington | 2002 | 2005 | Warwick | 2003 | 2006 | Warren | 2003 | 2006 | East Providence | 2003 | 2006 ADD} |
{ADD The implementation date for the above schedule shall be December 31st, of the stated year. ADD}
{ADD Those cities and towns not listed above, shall continue the revaluation schedule pursuant to 44-5-11.
(B) For the post transition period and in years thereafter: ADD}
| {ADD | Update #1 | Update #2 | Revaluation | Woonsocket | 2000 | 2003 | 2006 | Pawtucket | 2001 | 2004 | 2007 | Portsmouth | 2001 | 2004 | 2007 | Coventry | 2001 | 2004 | 2007 | Providence | 2002 | 2005 | 2008 | Foster | 2002 | 2005 | 2008 | Middletown | 2002 | 2005 | 2008 | Little Compton | 2003 | 2006 | 2009 | Scituate | 2003 | 2006 | 2009 | Westerly | 2003 | 2006 | 2009 | West Greenwich | 2004 | 2007 | 2010 | Glocester | 2004 | 2007 | 2010 | Richmond | 2004 | 2007 | 2010 | Tiverton | 2005 | 2008 | 2011 | Newport | 2005 | 2008 | 2011 | New Shoreham | 2005 | 2008 | 2011 | Narragansett | 2005 | 2008 | 2011 | Exeter | 2005 | 2008 | 2011 | Hopkinton | 2005 | 2008 | 2011 | Lincoln | 2006 | 2009 | 2012 | South Kingstown | 2006 | 2009 | 2012 | Smithfield | 2006 | 2009 | 2012 | West Warwick | 2006 | 2009 | 2012 | Johnston | 2006 | 2009 | 2012 | Burrillville | 2006 | 2009 | 2012 | North Smithfield | 2006 | 2009 | 2012 | Central Falls | 2006 | 2009 | 2012 | North Kingstown | 2006 | 2009 | 2012 | Jamestown | 2006 | 2009 | 2012 | North Providence | 2007 | 2010 | 2013 | Cumberland | 2007 | 2010 | 2013 | Bristol | 2007 | 2010 | 2013 | Charlestown | 2007 | 2010 | 2013 | East Greenwich | 2008 | 2011 | 2014 | Cranston | 2008 | 2011 | 2014 | Barrington | 2008 | 2011 | 2014 | Warwick | 2009 | 2012 | 2015 | Warren | 2009 | 2012 | 2015 | East Providence | 2009 | 2012 | 2015 ADD} |
{ADD The implementation date for the above schedule shall be December 31st of the stated year. Upon the completion of the update and revaluation schedule above, each city and town shall conduct a revaluation within nine (9) years of the date of the prior revaluation and shall conduct an update of real property every three (3) years from the last revaluation. ADD}
{ADD (C) No later than February 1, 1998, the director of the Department of Administration shall promulgate rules and regulations consistent with the provisions of this section to define the requirements for the updates which shall include, but not be limited to:
(1) An analysis of sales;
(2) A rebuilding of land value tables;
(3) A rebuilding of cost tables of all improvement items; and
(4) A rebuilding of depreciation schedules.
Upon completion of an update, each city or town shall provide for a hearing and/or appeal process for any aggrieved person to address any issue which arose during the update.
(D) The costs incurred by the towns and cities for the first update shall be borne by the state in an amount not to exceed fifteen dollars ($15.00) per parcel. The costs incurred by the towns and cities for the second update shall be borne eighty percent (80%) by the state (in an amount not to exceed ten dollars ($10.00) per parcel) and twenty percent (20%) by the town or city and in the third update and thereafter, the state shall pay sixty percent (60%) of the update (not to exceed six dollars ($6.00) per parcel) and the town or city shall pay forty percent (40%); provided, however, for the second update and in all updates thereafter, that the costs incurred by any city or town which is determined to be a distressed community pursuant to section 45-13-12 shall be borne eighty percent (80%) by the state and twenty percent (20%) by the city and towns for all updates required by this section.
(E) The office of municipal affairs, after consultation with the league of cities and towns and the Rhode Island Assessors' Association, shall recommend adjustments to the costs formula described in subsection (D) above based upon existing market conditions.
(F) Any property, which is either exempt from the local property tax pursuant to section 44-3-3 or which pays a city or town an amount in lieu of taxes, will not be required to have its values updated pursuant to section 44-5-11.6, and such property shall not be eligible for the reimbursement provisions of section 44-5-11.6(e). However, those properties which are exempt from taxation and are eligible for state appropriations in lieu of property tax under the provisions of section 45-13-5.1 will be eligible for state reimbursement pursuant to section 44-5-11.6(e), provided that these properties were revalued as part of that city or town's most recent property revaluation.
(G) No city or town shall be required to conduct an update pursuant to this section unless the state has appropriated sufficient funds to cover the state's costs as identified in subsection (E) above.
(H) Any city or town who fails to conduct an update or revaluation as required by this section, shall be subject to the provisions in section 45-13-1.1.
(I) Any bill or resolution to extend the dates for a city or town to conduct an update or revaluation must be approved by a two-thirds (2/3) majority of both houses of the general assembly. ADD}
{ADD 44-5-11.7. Permanent legislative oversight commission. -- ADD} {ADD (a) There is hereby created a permanent legislative commission on property taxation. The commission shall consist of the following members:
(1) chairperson of the house finance committee, or designee;
(2) chairperson of the senate finance committee, or designee;
(3) chief of the office of municipal affairs, or designee;
(4) the president of the league of cities and towns;
(5) the executive director of the Rhode Island public expenditures council, or designee; and
(6) one (1) member of the Rhode Island Assessors' Association.
The commission at its first meeting shall elect a chairperson from its membership.
(b) The purpose of the commission shall be to study and evaluate property tax related issues including but not limited to:
(1) revaluation process;
(2) exemptions and classifications;
(3) Uniform depreciation rates; and
(4) any other issues which the commission determines is relevant to the issue of property taxation.
(c) The members shall receive no compensation for their services. All departments and agencies of the state shall furnish advice and information, documentary or otherwise to the commission and its agents as is deemed necessary or desirable by the commission to facilitate the purposes of the commission.
(d) The commission shall meet no less than three (3) times per year and shall report its findings and recommendations to the general assembly on an annual basis. ADD}
SECTION 2. Section 44-5-11 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. Assessment of valuations -- Apportionment of levies. -- (a) The assessors in the several towns and cities shall assess all valuation and apportion the levy of all taxes legally ordered under the rules and regulations, not repugnant to law, as the town meetings and city councils, respectively, shall from time to time prescribe; provided, however, that the assessors shall revalue all taxable real estate and implement the revaluation within three (3) years after December 31, 1980 unless a town or city shall have completed and implemented the revaluation within seven (7) years prior to December 31, 1980 and each town or city shall complete and implement a revaluation of all real estate property each tenth (10th) year after its first revaluation is implemented under this section unless an earlier date for revaluation is established; provided further, however, the city of Woonsocket and the town of Cumberland shall have until December 31, 1984 to revalue all taxable real estate and implement the revaluation. Those towns and cities which have both completed and implemented a revaluation within seven (7) years prior to December 31, 1980 shall revalue and implement the revaluation within ten (10) years of the date of the prior revaluation and each and every tenth (10th) year thereafter; provided, however, that the city of Providence shall have until December 31, 1987 to revalue all taxable real estate; provided, however, that the town of West Warwick shall have until December 31, 1993 to revalue all taxable real estate and implement the revaluation; provided, however, that the town of Warren and the city of Cranston shall have until December 31, 1994 to revalue all taxable real estate and implement the revaluation; provided, however, that the town of Bristol shall have until December 31, 1994 to revalue all taxable real estate and implement the revaluation; provided, however, that the town of Narragansett shall have until December 31, 1992 to revalue all taxable real estate and implement the revaluation; provided, however, that the city of Pawtucket and the town of Burrillville shall have until December 31, 1995 to revalue all taxable real estate and implement the revaluation; provided, however, that the city of Central Falls and the towns of Johnston, North Smithfield and Lincoln shall have until December 31, 1993 to revalue all taxable real estate and implement the revaluation; provided however, that the city of East Providence shall have until December 31, 1995 to revalue all taxable real estate and implement the revaluation; provided however, that the city of Cranston shall have until December 31, 1994 to revalue all taxable real estate and implement the revaluation.
(b) The assessors of the respective cities and towns shall certify in writing to the department of administration of their proposed schedule of each revaluation and shall further certify in writing to the department when the revaluation is completed. At the completion of the revaluation, the certification shall include a tax rate, based upon the new valuation, which would have provided the same ad valorem revenue for the town or city as is being raised during the current town or city budget year.
{ADD (c) The provisions of this section shall be repealed in their entirety on January 1, 2000. ADD}
SECTION 3. This act shall take effect upon passage.
