§ 44-5-42. Exemption of certain farm property.
(a) All farm machinery, including motor vehicles with farm registration plates, is exempt from taxation; provided, that any town or city is entitled to reimbursement by the state in an amount equal to the amount levied on the value of the farm machinery in excess of the value of ten thousand dollars ($10,000.00) based upon assessments on December 31, 1982.
(b) Livestock and poultry which are actually and exclusively used in farming, when owned and kept in this state by any farmer or group of farmers operating as a unit, a partnership, or a corporation, a majority of the stock of which corporation is held by members of a family actively engaged in farm operations, are exempt from local property taxation; provided, that the principal means of livelihood of each farmer whether operating individually or as one of a group, partnership or corporation is derived from the farming operation. Only one exemption is allowed to each farmer, group of farmers, partnership, or corporation.
(c) Richmond. All real property including all real estate, buildings and improvements on the property which is not used for a personal residence and is actually and exclusively used in farming by a qualified farmer may be exempted from taxation by the town of Richmond. For purposes of this section, a “qualified farmer” is an individual, partnership or corporation who operates a farm and has filed a 1040F U.S. Internal Revenue form or similar document with the Internal Revenue Service, has a state of Rhode Island farm tax number, and has earned at least ten thousand dollars ($10,000) gross income on farm products in each of the preceding three (3) years, property defined as either farm, forest or open space land, pursuant to chapter 27 of this title. Any sale of exempted land, or portion of the land, incurs at the time of sale a penalty of twice the total amount of taxes exempted. The assessed penalty is due and payable to the town of Richmond, which would grant the exemption at the time of sale of the property. A sale of land to another qualified farmer or use according to this section is exempted from the penalty.
(d) Any taxpayer or owner which allows its real property to be used by a qualified owner in a manner consistent with use defined in subsection (c) may be eligible for the exemption established by this section for the duration of use by a qualified farmer. The tax assessor may prorate the exemption according to actual use. The tax assessor may require evidence of actual use, including, but not limited to, a lease, to substantiate the exemption.
(e) Cities and towns may tax farm buildings at a rate that reflects the actual costs incurred by the city or town in services to those buildings.
(f) All greenhouses constructed after January 1, 2006, or altered or repaired after January 1, 2006, where the cost of the alterations or repairs is equal to or greater than fifty percent (50%) of the physical value of the greenhouse, are exempt from taxation, provided that the greenhouse is used solely as an agriculture growing structure and provided further that the owner of the greenhouse operates a farm, has filed a 1040F, and has a current, valid Level II certificate of exemption as provided for in § 44-18-30.
History of Section.
P.L. 1972, ch. 189, § 1; P.L. 1984, ch. 245, art. X, § 1; P.L. 1984, ch. 348, § 1;
P.L. 1988, ch. 84, § 95; P.L. 1996, ch. 207, § 1; P.L. 2001, ch. 81, § 1; P.L. 2001,
ch. 255, § 1; P.L. 2006, ch. 535, § 1; P.L. 2006, ch. 536, § 1.