2013 -- S 0606

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LC01907

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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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Senators P Fogarty, Nesselbush, and Cote

     Date Introduced: March 06, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-5-11.5 and 44-5-11.6 of the General Laws in Chapter 44-5

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entitled "Levy and Assessment of Local Taxes" are hereby amended to read as follows:

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     44-5-11.5. Legislative findings -- Revaluation cycle. -- It is found and declared that:

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      (1) Rhode Island property taxes continue to play a significant role in the financing of

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local educational and municipal services. The general assembly recognizes that the way the

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property tax is assessed, levied and collected can be improved to provide more reliable and up-to-

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date property values in each of the cities and towns.

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      (2) The state's ten (10) year property revaluation cycle is the longest revaluation cycle in

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the country. Infrequent revaluations translate into disparities in property tax burden between types

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and classes of property within and among cities and towns. In addition, because each city and

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town represents multiple systems and procedures for administering the property tax, there is an

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inconsistent administration of property tax law and regulations.

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      (3) It is the intent of the general assembly to ensure that all taxpayers in Rhode Island are

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treated equitably. The more frequent the revaluation, the greater the equity within and among

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jurisdictions. Ensuring that taxpayers are treated fairly begins with modernizing the

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administration of the property tax that ensures:

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      (i) Up-to-date property values are maintained through more frequent property

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revaluations;

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      (ii) Cities and towns meet defined standards related to performing updates of property

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values;

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      (iii) The state shares in the cost of performing updates of property values in the cities and

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towns;

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      (iv) A meaningful and effective method of ensuring that cities and towns comply with

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the nine (9) year revaluation cycle and the updates of property values are developed;

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      (v) Procedures for administering the property tax are standardized -- such as general

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reporting and classification systems;

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      (vi) Assessors and contracted property revaluation companies meet appropriate

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qualifications and standards; and

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      (vii) Intergovernmental cooperation in the administration of the property tax is

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maximized.

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      (4) With these findings in mind, it is the intent of the general assembly to institute a

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revaluation cycle where every city or town conducts a revaluation within nine (9) years of the

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date of the prior revaluation and shall conduct an update of real property every three (3) six (6)

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years from the date of the last revaluation.

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     44-5-11.6. Assessment of valuations -- Apportionment of levies. -- (a) Notwithstanding

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the provisions of section 44-5-11 [repealed] beginning on December 31, 2000, the assessors in the

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several towns and cities shall conduct an update as defined in this section or shall assess all

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valuations and apportion the levy of all taxes legally ordered under the rules and regulations, not

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repugnant to law, as the town meetings and city councils, respectively, shall from time to time

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prescribe; provided, that the update or valuation is performed in accordance with the following

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schedules:

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     (1) (i) For a transition period, for cities and towns who conducted or implemented a

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revaluation as of 1993 or in years later:

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      Update Revaluation

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     Lincoln 2000 2003

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     South Kingstown 2000 2003

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     Smithfield 2000 2003

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     West Warwick 2000 2003

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     Johnston 2000 2003

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     Burrillville 2000 2003

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     North Smithfield 2000 2003

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     Central Falls 2000 2003

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     North Kingstown 2000 2003

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     Jamestown 2000 2003

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     North Providence 2001 2004

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     Cumberland 2001 2004

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     Bristol 2004 2001

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     Charlestown 2001 2004

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     East Greenwich 2002 2005

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     Cranston 2002 2005

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     Barrington 2002 2005

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     Warwick 2003 2006

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     Warren 2003 2006

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     East Providence 2003 2006

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      (ii) Provided that the reevaluation period for the town of New Shoreham shall be

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extended to 2003 and the update for the town of Hopkinton may be extended to 2007 with no

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additional reimbursements by the state relating to the delay.

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      (iii) The implementation date for this schedule is December 31st, of the stated year.

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      (iv) Those cities and towns not listed in this schedule, shall continue the revaluation

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schedule pursuant to section 44-5-11 [repealed].

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     (2) (i) For the post transition period and in years thereafter:

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      Update #1 Update #2 Revaluation

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     Woonsocket 2002 2005 2008

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     Pawtucket 2002 2005 2008

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     Portsmouth 2001 2004 2007

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     Coventry 2001 2004 2007

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     Providence 2003 2006 2009

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     Foster 2002 2005 2008

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     Middletown 2002 2005 2008

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     Little Compton 2003 2006 2009

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     Scituate 2003 2006 2009

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     Westerly 2003 2006 2009

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     West Greenwich 2004 2007 2010

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     Glocester 2004 2007 2010

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     Richmond 2004 2007 2010

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     Bristol 2004 2007 2010

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     Tiverton 2005 2008 2011

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     Newport 2005 2008 2011

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     New Shoreham 2006 2009 2012

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     Narragansett 2005 2008 2011

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     Exeter 2005 2008 2011

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     Hopkinton 2007 2010 2013

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     Lincoln 2006 2009 2012

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     South Kingstown 2006 2009 2012

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     Smithfield 2006 2009 2012

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     West Warwick 2006 2009 2012

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     Johnston 2006 2009 2012

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     Burrillville 2006 2009 2012

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     North Smithfield 2006 2009 2012

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     Central Falls 2006 2009 2012

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     North Kingstown 2006 2009 2012

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     Jamestown 2006 2009 2012

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     North Providence 2007 2010 2013

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     Cumberland 2007 2010 2013

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     Charlestown 2007 2010 2013

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     East Greenwich 2008 2011 2014

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     Cranston 2008 2011 2014

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     Barrington 2008 2010 2014

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     Warwick 2009 2012 2015

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     Warren 2009 2012 2015

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     East Providence 2009 2012 2015

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      (ii) The implementation date for the schedule is December 31st of the stated year. Upon

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the completion of the update and revaluation according to this schedule, each city and town shall

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conduct a revaluation within nine (9) years of the date of the prior revaluation and shall conduct

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an update of real property every three (3) six (6) years from the last revaluation.

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      (b) No later than February 1, 1998, the director of the department of revenue shall

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promulgate rules and regulations consistent with the provisions of this section to define the

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requirements for the updates which shall include, but not be limited to:

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      (1) An analysis of sales;

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      (2) A rebuilding of land value tables;

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      (3) A rebuilding of cost tables of all improvement items; and

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      (4) A rebuilding of depreciation schedules. Upon completion of an update, each city or

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town shall provide for a hearing and/or appeal process for any aggrieved person to address any

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issue, which arose during the update.

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      (c) The costs incurred by the towns and cities for the first update shall be borne by the

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state in an amount not to exceed twenty dollars ($20.00) per parcel. The costs incurred by the

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towns and cities for the second update shall be borne eighty percent (80%) by the state (in an

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amount not to exceed sixteen dollars ($16.00) per parcel) and twenty percent (20%) by the town

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or city and in the third update and thereafter, the state shall pay sixty percent (60%) of the update

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(not to exceed twelve dollars ($12.00) per parcel) and the town or city shall pay forty percent

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(40%); provided, that for the second update and in all updates thereafter, that the costs incurred

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by any city or town which is determined to be a distressed community pursuant to section 45-13-

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12 shall be borne eighty percent (80%) by the state and twenty percent (20%) by the city or town

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for all updates required by this section.

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      (d) The office of municipal affairs, after consultation with the league of cities and towns

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and the Rhode Island assessors' association, shall recommend adjustments to the costs formula

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described in subsection (c) of this section based upon existing market conditions.

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      (e) Any property, which is either exempt from the local property tax pursuant to section

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44-3-3 or which pays a city or town an amount in lieu of taxes, is not required to have its values

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updated pursuant to this section, and the property is not eligible for the reimbursement provisions

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of subsection (c) of this section. However, those properties which are exempt from taxation and

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are eligible for state appropriations in lieu of property tax under the provisions of section 45-13-

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5.1 are eligible for state reimbursement pursuant to subsection (c) of this section, provided, that

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these properties were revalued as part of that city or town's most recent property revaluation.

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      (f) No city or town is required to conduct an update pursuant to this section unless the

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state has appropriated sufficient funds to cover the state's costs as identified in subsection (c) of

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this section.

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      (g) Any city or town that fails to conduct an update or revaluation as required by this

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section, or requests and receives an extension of the dates specified in this section, shall receive

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the same amount of state aid under sections 45-13-1, 45-13-5.1, and 45-13-12 in the budget year

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for which the new values were to apply as the city or town received in-state aid in the previous

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budget year; provided, however, if the new year's entitlement is lower than the prior year's

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entitlement, the lower amount applies, except for the town of New Shoreham for the fiscal year

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2003.

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      (h) Any bill or resolution to extend the dates for a city or town to conduct an update or

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revaluation must be approved by a two-thirds ( 2/3) (2/3) majority of both houses of the general

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assembly.

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     SECTION 2. This act shall take effect upon passage.

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LC01907

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

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     This act would increase from three (3) to six (6) years the interval of time within which a

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city or town must conduct an update of its last real property revaluation.

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     This act would take effect upon passage.

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LC01907

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