2013 -- S 0185

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LC00424

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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 -- TAXATION OF FARM, FOREST AND OPEN SPACE LAND

     Introduced By: Senators Sosnowski, Cool Rumsey, DiPalma, Felag, and Picard

     Date Introduced: February 06, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-27-3, 44-27-4 and 44-27-5 of the General Laws in Chapter 44-

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27 entitled "Taxation of Farm, Forest, and Open Space Land" are hereby amended to read as

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follows:

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     44-27-3. Classification of farmland. -- (a) An owner of land may file a written

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application with the director of environmental management, for its designation by the director as

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farmland. When the application is made and after a filing fee of ten dollars ($10.00) is paid, the

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director shall examine the land and, if the director determines that it is farmland, the director shall

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issue a certificate in his or her office, furnish a copy to the owner of the land, and file one copy in

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the office of the assessor of the city or town in which the land is located.

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      (b) When requested to do so by the assessor or whenever the director deems it necessary,

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the director of environmental management shall re-examine land designated by the director as

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farmland. If the director finds that this land is no longer farmland, the director shall send a notice

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to the landowner that the landowner has thirty (30) days either to bring the land into compliance

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or to request a formal hearing before the director. If after the thirty (30) days or after the hearing,

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the director confirms that the land is no longer farmland, the director shall issue a certificate

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canceling his or her designation of the land as farmland, and shall furnish one copy to the owner

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and file one in the office of the assessor. Loss of designation by action of the director of

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environmental management makes the land subject to the land use change tax provided for in

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section 44-5-39.

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      (c) (1) An owner of land designated as farmland by the director of environmental

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management may apply for its classification as farmland on any assessment list of the city or

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town where it is located by filing a written application for that classification with the assessor of

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the city or town not earlier than thirty (30) days before nor later than thirty (30) days after the

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date of assessment, except that in years of revaluation not later than thirty (30) days after written

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notice of revaluation or in its absence after receipt of the tax bill, and if the director has not

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cancelled his or her designation of that land as farmland as of a date at or prior to the date of the

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assessment, the assessor shall classify the land as farmland and include it as farmland on the

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assessment list.

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      (2) In order to maintain this classification, each year thereafter, the property owner shall

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submit to the assessor a certificate on a form prescribed by the assessor confirming that the land

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is still used in farming. The assessor shall in the first notification mail the forms by registered or

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certified first class mail not later than the thirtieth of November and if a second notification is

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needed, it shall be mailed certified. Failure to submit the certificate by thirty (30) days after the

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date of assessment is construed as voluntary withdrawal of the classification, except that the

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assessor may waive this requirement for good cause.

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      (3) Notwithstanding the preceding subsections, whenever the owner of land designated

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and classified as farmland is a municipal land trust, municipal conservation commission, or

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private nonprofit land trust, annual certification is not required, and the classification continues

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until the voluntary withdrawal of the classification by the owner, or the transfer of the land by the

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owner in fee simple.

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      (d) Application to the director of environmental management for designation as farmland

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shall be made upon a form prescribed by the director and shall present a description of the land

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and any other information that he or she may require to aid the director in determining whether

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the land qualifies for that designation. An application to an assessor for classification of land as

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farmland shall be made upon a form prescribed by the assessor and shall present a description of

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the land and the date of issuance by the director of environmental management of his or her

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certificate designating it as farmland.

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      (e) Failure to file an application for classification of farmland within the time limit

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prescribed in subsection (c) of this section and in the manner and form prescribed in subsection

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(d) of this section shall be construed as a waiver of the right to that classification on the

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assessment list.

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      (f) Any landowner aggrieved by: (1) the cancellation of a designation under subsection

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(b) of this section or the denial of an application, filed in accordance with the provisions of

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subsections (c) and (d) of this section, by the assessor of a city or town for a classification of land

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as farmland; or (2) the use value assessment placed on land classified as farmland by the assessor;

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has the right to file an appeal within ninety (90) days of receiving notice, in writing, of the denial

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or the use value assessment with the board of assessment review of the city or town. Should the

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city or town not have a board of assessment review, the city or town council reviews the appeal.

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The assessor shall be given the opportunity to explain either his or her refusal to classify the land

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or the assessment placed on the classified land. The board of review, or city or town council, shall

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also consider the testimony of the landowner and the city or town's planning board and

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conservation commission, if they exist. They shall also seek and consider the advice of the office

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of state planning, the department of environmental management, the dean of the college of

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resource development, and the conservation district in which the city or town is located.

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      (g) (1) The board of assessment review, or city or town council, shall not disturb the

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designation of the director issued pursuant to subsection (a) of this section, unless the tax assessor

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has shown by a preponderance of the evidence that that designation was erroneous.

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      (2) The board of assessment review, or city or town council, shall render a decision

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within forty-five (45) days of the date of filing the appeal. Decisions of the board of assessment

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review, or city or town council, may be appealed to the superior court pursuant to section 44-27-

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6.

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     44-27-4. Classification of forest land. -- (a) An owner of not less than ten (10) acres of

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forest land may file a written application with the director of environmental management for its

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designation by the director as forest land. When the application is made and a filing fee of ten

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dollars ($10.00) is paid, the director shall examine the land and, if the director determines that it

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is forest land, the director shall issue a certificate in his or her office, furnish a copy to the owner

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of the land, and file a copy in the office of the assessor of the city or town where the land is

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located.

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      (b) (1) When requested to do so by the assessor or whenever the director deems it

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necessary, the director of environmental management shall re-examine land designated by him or

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her as forest land. If the director finds that the land is no longer forest land or if the director finds

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that the land is not being managed in accordance with the forest management plan approved by

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the director, he or she shall send a notice to the landowner that the landowner has thirty (30) days

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either to bring the land into compliance or to request a formal hearing before the director. If after

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the thirty (30) days or after the hearing, the director confirms that the land is no longer forest

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land, the director shall issue a certificate canceling his or her designation of the land as forest land

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and shall furnish one copy to the owner and shall file one copy in the office of the assessor.

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      (2) Loss of designation by action of the director of environmental management makes

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the land subject to the land use change tax provided for in section 44-5-39.

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      (c) (1) An owner of land designated as forest land by the director of environmental

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management may apply for its classification as forest land on any assessment list of the city or

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town where it is located by filing a written application for the classification with the assessor of

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the city or town not earlier than thirty (30) days before nor later than thirty (30) days after the

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date of assessment, except that in years of revaluation not later than thirty (30) days after written

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notice of revaluation or in its absence after receipt of the tax bill. If the director has not cancelled

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his or her designation of the land as forest land as of a date at or prior to the date of the

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assessment, the assessor shall classify the land as forest land and include the land as forest land

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on the assessment list.

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      (2) In order to maintain this classification, each year thereafter, the property owner shall

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submit to the assessor a certificate on a form prescribed by the assessor confirming that the land

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is still managed as forest land. The assessor shall in the first notification mail these forms by first

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class mail to the property owner not later than November thirtieth and if a second notification is

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needed, it shall be mailed certified. Failure to submit the certificate by thirty (30) days after the

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date of assessment is construed as voluntary withdrawal of the classification; except that the

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assessor may waive this requirement for good cause.

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      (3) Notwithstanding the preceding subsections, whenever the owner of land designated

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and classified as forest land is a municipal land trust, municipal conservation commission, or

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private non-profit land trust, annual certification is not required, and the classification continues

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until the voluntary withdrawal of the classification by the owner or transfer of the land by the

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owner in fee simple.

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      (d) Application to the director of environmental management for designation of land as

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forest land shall be made upon a form prescribed by the director and shall present a description of

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the land and any other information that he or she may require to aid the director in determining

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whether the land qualifies for that designation, including a written forest management plan

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prepared by a professionally qualified forester on the director's staff or another professionally

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qualified forester in consultation with the landowner, with recommended management practices

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to be followed. An application to an assessor for classification of land as forest land shall be made

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on a form prescribed by the assessor and shall present a description of the land and the date of the

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issuance by the director of his or her certificate designating it as forest land.

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      (e) Failure to file an application for classification of land as forest land within the time

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limit prescribed in subsection (c) of this section and in the manner and form prescribed in

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subsection (d) of this section is considered a waiver of the right to that classification on the

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assessment lists.

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      (f) Any landowner aggrieved by: (1) the cancellation of a designation under subsection

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(b) of this section or the denial of an application, filed in accordance with the provisions of

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subsections (c) and (d) of this section, by the assessor of a city or town for a classification of land

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as forest land; or (2) the use value assessment placed on land classified as forest land by the

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assessor; has the right to file an appeal within ninety (90) days of receiving notice, in writing, of

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the denial or the use value assessment with the board of assessment review of the city or town.

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Should the city or town not have a board of assessment review, the city or town council shall

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review the appeal. The assessor is given the opportunity to explain either his or her refusal to

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classify the land or the assessment placed on the classified land. The board of review, or city or

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town council, shall also consider the testimony of the landowner and the city or town's planning

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board and conservation commission, if they exist. They shall also seek and consider the advice of

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the office of state planning, the department of environmental management, the dean of the college

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of resource development and the conservation district in which the city or town is located.

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      (g) (1) The board of assessment review, or city or town council, shall not disturb the

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designation of the director issued pursuant to subsection (a) of this section, unless the tax assessor

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has shown by a preponderance of the evidence that that designation was erroneous.

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      (2) The board of assessment review, or city or town council, shall render a decision

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within forty-five (45) days of the date of filing the appeal. Decisions of the board of assessment

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review, or city or town council, may be appealed to the superior court pursuant to the provisions

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of section 44-27-6.

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     44-27-5. Classification of open space land. -- (a) (1) An owner of land may apply for its

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classification as open space land on any assessment list of a city or town by filing a written

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application for that classification with the assessor of the city or town, not later than thirty (30)

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days before nor later than thirty (30) days after the date of assessment, except in years of

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revaluation when the landowner may file not later than thirty (30) days after receiving written

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notice of revaluation or in its absence after receipt of the tax bill. The assessor shall determine

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whether the land is open space and, if the assessor determines that the land is open space, the

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assessor shall classify the land as open space land and include the land as open space on the

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assessment list.

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      (2) In order to maintain this classification, each year thereafter, the landowner shall

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submit to the assessor a certificate, on a form prescribed by the assessor, confirming that the land

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is still open space. The assessor shall in the first notification mail the forms by registered or

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certified first class mail not later than the thirtieth of November and if a second notification is

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needed, it shall be mailed certified. Failure to submit the certificate by thirty (30) days after the

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date of assessment is construed as voluntary withdrawal of the classification; except that the

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assessor may waive this requirement for good cause.

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      (3) Notwithstanding the preceding subdivision, whenever the owner of land designated

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and classified as open space land is a municipal land trust, municipal conservation commission,

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or private nonprofit land trust, annual certification is not required, and the classification continues

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until the voluntary withdrawal of the classification by the owner, or the transfer of the land by the

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owner is fee simple.

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      (b) An application for classification of land as open space land shall be made upon a

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form prescribed by the assessor and shall present a description of the land, a general description

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of the use to which it is being put, and any other information that the assessor may require to aid

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him or her in determining whether the land qualifies for that classification.

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      (c) Failure to file an application for classification of land as open space land within the

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time limit prescribed in subsection (a) of this section and in the manner and form prescribed in

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subsection (b) of this section is considered a waiver of the right to that classification on the

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assessment list.

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      (d) Any landowner aggrieved by: (1) the denial of an application filed in accordance

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with the provisions of subsections (a) and (b) of this section by the assessor of a city or town for

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classification of land as open space land; or (2) the use value assessment placed on land classified

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as open space land by the assessor; has the right to file an appeal within ninety (90) days of

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receiving notice, in writing, of the denial or the use value assessment with the board of

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assessment of review of the city or town. Should the city or town not have a board of assessment

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review, the city or town council shall review the appeal. The assessor shall be given the

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opportunity to explain either his or her refusal to classify the land or the assessment placed on the

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classified land. The board of review or city or town council shall also consider the testimony of

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the landowner and the city or town's planning board and conservation commission, if they exist.

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They shall also seek and consider the advice of the office of state planning, the department of

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environmental management, the dean of the college of resource development and the

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conservation district in which the city or town is located.

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      (e) (1) The board of assessment review, or city or town council, shall not disturb the

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designation of the director issued pursuant to subsection (a) of this section, unless the tax assessor

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has shown by a preponderance of the evidence that that designation was erroneous.

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      (2) The board of assessment review or city or town council shall render a decision within

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forty-five (45) days of the date of filing the appeal. Decisions of the board of assessment review,

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or city or town council, may be appealed to the superior court pursuant to the provisions of

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section 44-27-6.

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     SECTION 2. This act shall take effect upon passage.

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LC00424

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- TAXATION OF FARM, FOREST AND OPEN SPACE LAND

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     This act would amend the laws to enable the tax assessor to save postage in the first

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mailing of a form to landowners to confirm that space is still farm, forest or open land.

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     This act would take effect upon passage.

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LC00424

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