2013 -- H 5176

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LC00493

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TAXATION - POWERS AND DUTIES OF FIRE DISTRICTS

     Introduced By: Representatives Guthrie, Tomasso, and Serpa

     Date Introduced: January 29, 2013

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

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adding thereto the following chapter:

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     CHAPTER 5.2

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POWERS AND DUTIES OF FIRE DISTRICTS

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     44-5.2-1. Tax classification. -- (a) Any fire district may adopt a tax classification plan,

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by a majority vote of the electors of the district, with the following limitations:

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      (1) The designated classes of property shall be limited to the four (4) classes as defined

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in subsection (b) of this section.

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     (2) The effective tax rate applicable to any class excluding class 4 shall not exceed by

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fifty percent (50%) the rate applicable to any other class.

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     (3) Any tax rate changes from one year to the next shall be applied such that the same

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percentage rate change is applicable to all classes, excluding class 4.

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     (4) Notwithstanding subdivisions (2) and (3) of this subsection, the tax rates applicable to

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wholesale and retail inventory within class 3 as defined in subsection (b) of this section are

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governed by section 44-3-29.1.

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     (5) The tax rates applicable to motor vehicles within class 4 as defined in subsection (b)

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of this section are governed by section 44-34.1-1.

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     (6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure

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applies to the reporting of and compliance with these classification restrictions.

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     (b) Classes of Property.

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     (1) Class 1: Residential real estate consisting of no more than five (5) dwelling units, land

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classified as open space, and dwellings on leased land including mobile homes.

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     (2) Class 2: Commercial and industrial real estate, residential properties containing partial

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commercial or business uses and residential real estate of more than five (5) dwelling units.

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     (3) Class 3: All ratable tangible personal property.

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     (4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of

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this title.

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     44-5.2-2. Supplemental taxes.-- In order to maintain a balanced budget and to prevent a

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deficit projected for a current fiscal year, a fire district may adopt a supplemental tax by a

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majority vote of the electors of the district.

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     44-5.2-3. Audit of Accounts and Installation of Systems. -- All fire districts located

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within the cities and towns of the state shall be required to conduct an independent annual audit.

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     44-5.2-4. Availability of funds upon failure of fire district to approve annual

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appropriation. -- Unless otherwise provided by charter, if a fire district fails to approve an

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annual appropriation measure, the same amounts appropriated in the previous fiscal year shall be

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available provided, that such appropriation shall be increased by such amount as is necessary for

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expenditures for payment of existing bonded indebtedness of the fire district and interest thereon.

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     44-5.2-5. Compliance. -- Unless otherwise provided, the division of municipal finance in

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the department of revenue shall monitor fire district compliance with this chapter and issue

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periodic reports to the general assembly on compliance.

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     44-5.2-6. Application. -- The powers and duties set forth in this chapter shall not apply

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if specifically prohibited by the charter of any fire district..

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     SECTION 2. This act shall take effect upon passage.

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LC00493

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - POWERS AND DUTIES OF FIRE DISTRICTS

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     This act would provide fire districts with the power to adopt tax classification rates, adopt

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supplemental taxes and operate under a previous fiscal year's budget under certain circumstances.

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It would also subject fire districts to audit of accounts and installation of systems.

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     This act would take effect upon passage.

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LC00493

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