2013 -- H 5391 AS AMENDED

=======

LC01100

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO TAXATION-LEVY AND ASSESSMENT OF LOCAL TAXES-CENTRAL

FALLS

     Introduced By: Representatives Silva, Hull, and McLaughlin

     Date Introduced: February 12, 2013

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 44-5-61.1 of the General Laws in Chapter 44-5 entitled "Levy and

1-2

Assessment of Local Taxes" is hereby amended to read as follows:

1-3

     44-5-61.1. Central Falls -- Exemption or stabilizing of taxes on qualifying property

1-4

located in the city. -- Except as provided in this section, the city council of the city of Central

1-5

Falls may vote to authorize for a period not exceeding five (5) ten (10) years, and subject to the

1-6

conditions provided in this section, to exempt from payment, in whole or in part, real and

1-7

personal qualifying property, or to determine a stabilized amount, of taxes to be paid on account

1-8

of the qualifying property located within the city of Central Falls, notwithstanding the valuation

1-9

of the property or the rate of tax; provided, that after a public hearing, at least ten (10) days'

1-10

notice of which must be given in a newspaper having a general circulation in the city, the city

1-11

council determines that granting of the exemption or stabilization for qualifying property has

1-12

inured or will inure to the benefit of the city by reason of the willingness of the owners of

1-13

qualifying property to replace, reconstruct, expand or remodel existing buildings, facilities,

1-14

machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment or

1-15

to construct new buildings or facilities or acquire new machinery or equipment for use in the

1-16

buildings or facilities or to reoccupy or reuse the buildings or facilities if they are vacant or

1-17

abandoned for manufacturing/warehousing or research and development, resulting in an increase

1-18

in investment by the owners in the city. For purposes of this section, "qualifying property" means

1-19

any building or structures used or intended to be used essentially for offices, manufacturing, or

2-1

commercial enterprises., including, but not limited to, financial service enterprises. Except as

2-2

provided in this section, property, the payment of taxes on which has been so exempted or which

2-3

is subject to the payment of a stabilized amount of taxes, shall not, during the period for which

2-4

the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by

2-5

the city so long as that property is used or intended to be used for the manufacturing or

2-6

commercial purposes for which the exemption or stabilized amount of taxes was made.

2-7

     SECTION 2. Section 44-5-12 of the General Laws in Chapter 44-5 entitled "Levy and

2-8

Assessment of Local Taxes" is hereby amended to read as follows:

2-9

     44-5-12. Assessment at full and fair cash value. -- (a) All real property subject to

2-10

taxation shall be assessed at its full and fair cash value, or at a uniform percentage of its value,

2-11

not to exceed one hundred percent (100%), to be determined by the assessors in each town or

2-12

city; provided, that:

2-13

      (1) Any residential property encumbered by a covenant recorded in the land records in

2-14

favor of a governmental unit or Rhode Island housing and mortgage finance corporation

2-15

restricting either or both the rents that may be charged or the incomes of the occupants shall be

2-16

assessed and taxed in accordance with section 44-5-13.11;

2-17

      (2) In assessing real estate which is classified as farm land, forest, or open space land in

2-18

accordance with chapter 27 of this title the assessors shall consider no factors in determining the

2-19

full and fair cash value of the real estate other than those which relate to that use without regard

2-20

to neighborhood land use of a more intensive nature;

2-21

      (3) Warwick. - The city council of the city of Warwick is authorized to provide, by

2-22

ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick

2-23

who makes any improvements or additions on his or her principal place of residence in the

2-24

amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the

2-25

city of Warwick, is exempt from reassessment of property taxes on the improvement or addition

2-26

until the next general citywide reevaluation of property values by the tax assessor. For the

2-27

purposes of this section, "residence" is defined as voting address. This exemption does not apply

2-28

to any commercial structure. The property owner shall supply all necessary plans to the building

2-29

official for the improvements or addition and shall pay all requisite building and other permitting

2-30

fees as now are required by law; and

2-31

      (4) Central Falls. - The city council of the city of Central Falls is authorized to provide,

2-32

by ordinance, that the owner of any dwelling of one to eight (8) units who makes any

2-33

improvements or additions to his or her residential or rental property in an amount not to exceed

2-34

twenty twenty-five thousand dollars ($20,000) ($25,000) as determined by the tax assessor of the

3-1

city of Central Falls is exempt from reassessment of property taxes on the improvement or

3-2

addition until the next general citywide reevaluation of property values by the tax assessor. The

3-3

property owner shall supply all necessary plans to the building official for the improvements or

3-4

additions and shall pay all requisite building and other permitting fees as are now required by

3-5

law.

3-6

      (5) Tangible property shall be assessed according to the asset classification table as

3-7

defined in section 44-5-12.1.

3-8

      (b) Municipalities shall make available to every land owner whose property is taxed

3-9

under the provisions of this section a document which may be signed before a notary public

3-10

containing language to the effect that they are aware of the additional taxes imposed by the

3-11

provisions of section 44-5-39 in the event that they use land classified as farm, forest, or open

3-12

space land for another purpose.

3-13

      (c) Pursuant to the provisions of section 44-3-29.1, all wholesale and retail inventory

3-14

subject to taxation is assessed at its full and fair cash value, or at a uniform percentage of its

3-15

value, not to exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each

3-16

town and city. Once the fiscal year 1999 value of the inventory has been assessed, this value shall

3-17

not increase. The phase-out rate schedule established in section 44-3-29.1(d) applies to this fixed

3-18

value in each year of the phase-out.

3-19

     SECTION 3. This act shall take effect upon passage.

=======

LC01100

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION-LEVY AND ASSESSMENT OF LOCAL TAXES-CENTRAL

FALLS

***

4-1

     This act would authorize the city council of the city of Central Falls to increase the

4-2

amount of time for tax exemptions for certain improvements to qualifying real and personal

4-3

property from five (5) years to ten (10) years, and the amount from twenty thousand dollars

4-4

($20,000) to twenty-five thousand dollars ($25,000).

4-5

     This act would take effect upon passage.

=======

LC01100

=======