2015 -- H 5752

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LC001938

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION --TIVERTON

ELDERLY EXEMPTION

     

     Introduced By: Representatives Edwards, and Canario

     Date Introduced: February 26, 2015

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-3-16 of the General Laws in Chapter 44-3 entitled "Property

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Subject to Taxation" is hereby amended to read as follows:

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     44-3-16. Elderly -- Freeze of tax rate and valuation. -- (a) The city or town councils of

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the various cities and towns except the towns of West Warwick, Exeter, Coventry and Bristol

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may provide, by ordinance, for the freezing of the rate and valuation of taxes on real property

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located therein to any person who is sixty-five (65) years or older or to any person who is totally

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and permanently disabled regardless of age and who does not have income from all sources in

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excess of four thousand dollars ($4,000) per year, or in the case of the town of Johnston to any

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person who is sixty-five (65) years or older or to any person who is totally and permanently

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disabled regardless of age and who does not have income from all sources in excess of six

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thousand dollars ($6,000) per year, and a total income of seventy-two hundred dollars ($7,200)

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for two (2) or more persons living in that dwelling, or in the case of the city of Cranston to any

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person who is sixty-five (65) years or older or to any person who is totally and permanently

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disabled regardless of age and who does not have income from all sources in excess of twenty

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thousand dollars ($20,000) per year, or a lesser figure as determined by the city council of the city

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of Cranston and a total income of twenty-three thousand dollars ($23,000), or a lesser figure as

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determined by the city council of the city of Cranston, for two (2) or more persons living in that

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dwelling; provided, that the freeze of rate and valuation on real property applies only to owner

 

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occupied single or two (2) family dwellings in which the person resides; and provided, further,

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that the exemption is not allowed unless the person entitled to it has presented to the assessors, on

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or before the last day on which sworn statements may be filed with the assessors for the year for

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which the tax freeze is claimed, or for taxes assessed December 31, 2009, the deadline is April

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15, 2010, evidence that he or she is entitled, which evidence shall stand as long as his or her legal

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residence remains unchanged. The exemptions shall be in addition to any other exemption

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provided by law, and provided, further, that the real estate is not taken from the tax rolls and is

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subject to the bonded indebtedness of the city or town.

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      (b) (1) The town council of the town of West Warwick may provide, by ordinance, for a

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schedule of exemptions from the assessed valuation on real property located there for any person

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who is sixty-five (65) years or older or to any person who is totally and permanently disabled

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regardless of age, which exemption schedule is based upon gross annual income from all sources

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as follows:

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      (i) An exemption of three hundred seventy-five dollars ($375) for those having a gross

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annual income from all sources of $0 to $15,000;

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      (ii) An exemption of two hundred eighty dollars ($280) for those having a gross annual

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income from all sources of $15,001 to $20,000;

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      (iii) An exemption of two hundred thirty-five dollars ($235) for those having a gross

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annual income from all sources of $20,001 to $25,000;

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      (iv) An exemption of one hundred ninety dollars ($190) for those having a gross annual

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income from all sources of $25,001 to $30,000;

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      (v) An exemption of one hundred dollars ($100) for those having a gross annual income

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from all sources of $30,001 to $35,000.

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      (2) Provided, that the exemption schedule applies only to single family dwellings in

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which the person resides; provided, further, that the person acquired the property for actual

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consideration paid or inherited the property; provided, further, that the person has resided in the

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town of West Warwick for a period of three (3) years ending with the date of assessment for the

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year for which exemption is claimed; and provided, further, that the exemption is not allowed

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unless the person entitled to it has presented to the assessors, on or before the last day on which

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sworn statements may be filed with the tax assessor for the year for which the exemption is

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claimed, evidence that he or she is entitled, which evidence shall stand as long as his or her

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residence remains unchanged. In the case of married persons, the age requirement will be met as

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soon as either the husband or wife reaches the age of sixty-five (65) years and in the event the

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husband passes away, a widow sixty-two (62) years of age to sixty-five (65) years of age is

 

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allowed the exemption as long as she remains unmarried.

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      (3) Those persons granted tax relief under chapter 255 of the Public Laws of 1972 have

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the option of retaining their current tax freeze or abandoning it to seek relief under this

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subsection.

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      (c) The town council of the town of Coventry may, by ordinance, exempt from taxation

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the real property and/or mobile homes situated in the town which is owned and occupied as the

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principal residence, by any one or more persons sixty-five (65) years of age or over or by one

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who is totally and permanently disabled, regardless of age, domiciled in the town of Coventry,

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upon terms and conditions that may be established by the town council in the ordinance. The

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exemption is for taxes assessed December 31, 1975, and subsequent years. Any ordinance

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adopted by the town council pursuant to the provisions of this subsection and subsections (d) and

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(e) may be amended at any time and from time to time by the town council or any successor town

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council.

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      (d) The town council of the town of Coventry may, by ordinance, exempt from taxation

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the real property situated in the town, owned and occupied by any person, who is a veteran as

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defined in ยง 44-3-4, totally and permanently disabled or over the age of sixty-five (65) years,

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which exemption is in an amount not exceeding nine thousand dollars ($9,000) of valuation,

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retroactive to real property assessed on December 31, 1978, and which exemption is in addition

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to any and all other exemptions from taxation to which the person may be entitled. The

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exemption is applied uniformly, and without regard to ability to pay, provided, that only one

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exemption is granted to co-tenants, joint tenants, and tenants by the entirety, even though all of

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the co-tenants, joint tenants, and tenants by the entirety are veterans, totally and permanently

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disabled, or sixty-five (65) years of age or over. The exemption applies to a life tenant who has

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the obligation for the payment of the tax on the real property.

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      (e) The town council of the town of Coventry is authorized in the ordinance or

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ordinances to provide that any person who obtains an exemption pursuant to the ordinance to

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which the person is not entitled by the filing or making of any false statement or the proffering of

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any document or other writing known by the person to have been altered, forged, or to contain

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any false or untrue information is liable to the town of Coventry for an amount equal to double

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the amount of reduction in taxes resulting from the exemption, which amount is recoverable by

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the town in a civil action.

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      (f) The town council of the town of Exeter may provide, by ordinance, for the freezing of

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the rate and valuation of taxes on real property located in the town to any qualified person who is

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sixty-five (65) years or older regardless of income, or to any person who is totally and

 

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permanently disabled regardless of age, and income, provided, that the freeze of rate and

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valuation on real property applies only to single family dwellings in which the person resides; and

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provided, further, that the person acquired the property for actual consideration paid or inherited

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the property; and provided that the qualified person has presented to the assessors, on or before

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the last day on which sworn statements may be filed with the assessors for the year for which the

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exemption is claimed, evidence that he or she is entitled, which evidence shall stand as long as his

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or her legal residence remains unchanged. The stabilization of resulting tax assessments shall be

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subject to reasonable definitions, terms and conditions as may otherwise be prescribed by

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ordinance. The exemption is in addition to any other exemption provided by law, and provided,

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further, that the real estate is not taken from the tax rolls and is subject to the bonded

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indebtedness of the town.

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      (g) (1) (i) The town council of the town of Bristol may provide, by ordinance, for the

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freezing of the rate and valuation of taxes on real property located there to any person who is

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sixty-five (65) years or older, or if not sixty-five (65) or older, the taxpayer's spouse who is

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domiciled with him or her, is sixty-five (65) or older; who is fifty (50) years or older and who is

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the widow or widower of a taxpayer who, prior to death, had qualified for, and was entitled to

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relief under this subsection and who was domiciled with the decedent taxpayer on the date of

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death or to any person who is totally and permanently disabled regardless of age. The taxpayer

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shall reside in the town of Bristol for one year prior to filing the claim for relief.

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      (ii) To qualify for relief, the taxpayer shall have "adjusted gross income", as the term is

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defined for federal income tax purposes, for the preceding calendar year of less than ten thousand

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dollars ($10,000).

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      (2) The tax is calculated by fixing the tax at the tax rate as levied on the real property

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during the year in which the taxpayer became age sixty-four (64) or totally and permanently

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disabled regardless of age. The rate remains regardless of the taxpayer's age, date of application,

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or date of qualification.

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      (3) The taxpayer shall apply annually for tax relief on a form prepared by the tax

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assessor. The application shall be filed between January 1 and May 15 for any year in which

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benefits are claimed. The taxpayer shall file any supplemental information necessary to satisfy the

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claim. Upon approval, the tax relief shall take effect in the next forthcoming tax roll.

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      (4) The owner of the property or a tenant for life or for a term of years who meets the

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qualifications previously enumerated is entitled to pay the tax levied on the property for the first

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year in which the claim for tax relief is filed and approved. For each subsequent year the taxpayer

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shall meet the qualifications hereafter enumerated, the taxpayer shall be entitled to continue to

 

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pay the tax or the lesser amount as is levied.

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      (h) The town council of the town of Tiverton may, by ordinance, exempt from taxation

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provide for a tax credit on the real property and/or mobile homes situated in the town which is

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owned and occupied as the principal residence by any one or more persons sixty-five (65) years

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of age or over by one who is totally and permanently disabled, regardless of age, domiciled in the

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town of Tiverton, upon terms and conditions as may be established by the town council in the

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ordinance.

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      (i) (1) The town of Tiverton may provide, by ordinance, for a schedule of exemptions

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from the assessed valuation on real property located there tax credits for any person who is sixty-

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five (65) years or older, which exemption tax credit schedule is based upon annual adjusted gross

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income as defined for federal income tax purposes. as follows:

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      (i) An exemption not to exceed fifty thousand dollars ($50,000) for those having an

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adjusted gross income of zero (0) to fifteen thousand dollars ($15,000);

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      (ii) An exemption not to exceed thirty-five thousand dollars ($35,000) for those having

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an annual adjusted income of fifteen thousand one dollars ($15,001) to eighteen thousand dollars

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($18,000);

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      (iii) An exemption not to exceed twenty-five thousand dollars ($25,000) for those having

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an annual adjusted income of eighteen thousand one dollars ($18,001) to twenty-two thousand

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dollars ($22,000);

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      (iv) An exemption not to exceed twenty thousand dollars ($20,000) for those having an

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annual adjusted income of twenty-two thousand one dollars ($22,001) to thirty thousand dollars

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($30,000).

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      (2) Provided, that the exemption tax credit schedule applies only to single family

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dwellings in which the person resides; provided, further, that the person acquired the property for

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actual consideration paid or inherited the property; provided, further, that the person has resided

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in the town of Tiverton for a period of three (3) years ending with the date of assessment for the

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year for which exemption the tax credit is claimed; and provided, further, that the exemption tax

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credit is not allowed unless the person entitled to it has presented to the assessors, on or before

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the last day on which sworn statements may be filed with the tax assessor for the year for which

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the exemption tax credit is claimed, due evidence that he or she is so entitled, which evidence

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shall stand as long as his or her residence remains unchanged.

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      (3) In the case of married persons, the age requirement will be met as soon as either the

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husband or wife reaches the age of sixty-five (65) years, and in the event the husband a spouse

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passes away, a widow(er) sixty-two (62) years of age to sixty-five (65) years of age is allowed the

 

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exemption tax credit as long as she remains unmarried.

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      (j) The city council of the city of Warwick may provide, by ordinance, for the freezing of

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the tax rate and valuation of real property for persons seventy (70) years of age or older who

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reside in owner occupied single-family homes where the income from all sources does not exceed

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seven thousand five hundred dollars ($7,500) for a single person and does not exceed fifteen

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thousand dollars ($15,000) for married couples. Persons seeking relief shall apply for an

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exemption to the tax assessor no later than March 15 of each year.

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      (k) The town council of the town of East Greenwich may provide, by ordinance, and

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upon such terms and conditions as it deems reasonable, for the freezing of both the tax rate

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attributable to education and the valuation of taxes on real property located in the town of any

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person who is sixty-five (65) years or older or of any person who is totally and permanently

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disabled regardless of age; provided, that the freeze of rate and valuation on real property applies

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only to single or two (2) family dwellings in which the person resides; and provided, further, that

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the person acquired the property for actual consideration paid or inherited the property; and

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provided, further, that the exemption is not allowed unless the person entitled to it has presented

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to the tax assessor, on or before the last day on which sworn statements may be filed with the

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assessor for the year for which the exemption is claimed, evidence that he or she is entitled,

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which evidence shall stand as long as his or her legal residence remains unchanged. The

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exemption is in addition to any other exemption provided by law; and provided, further, that the

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real estate is not taken from the tax rolls and is subject to the bonded indebtedness of the town.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION --TIVERTON

ELDERLY EXEMPTION

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     This act would amend the town of Tiverton's elderly low income tax exemption in order

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to provide a tax credit instead of an exemption, to taxpayers in the town of Tiverton sixty-five

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(65) years of age or older. The act would also repeal the tax exemption schedule and instead

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would allow the Tiverton town council to establish its own schedule of tax credits for citizens

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sixty-five (65) years of age or older.

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     This act would take effect upon passage.

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