2015 -- H 5955

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LC001771

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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

     

     Introduced By: Representatives Handy, Carnevale, Lombardi, and McKiernan

     Date Introduced: March 20, 2015

     Referred To: House Finance

     (Administration)

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 3.1

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RENEWABLE ENERGY SYSTEMS PROPERTY TAXATION

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     44-3.1-1. Purpose. -- The purpose of this chapter is to facilitate and provide a predictable

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process for how commercial and residential renewable energy systems are assessed and taxed.

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The goal of this chapter is to provide predictability to homeowners, businesses, municipalities

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and renewable energy developers on property valuation tax rates and revenues for renewable

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energy systems. This process shall enhance and improve the state's renewable energy economy

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and reduce the costs of renewable energy.

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     44-3.1-2. Definitions. -- When used in this chapter, the following terms shall have the

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following meanings:

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     (1) "Division" means the Rhode Island division of municipal finance;

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     (2) "Office" means the Rhode Island office of energy resources; and

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     (3) "Renewable energy system" means renewable energy systems using eligible

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renewable energy resources as defined § 39-26-5.

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     44-3.1-3. Renewable energy systems - Exemption. -- The city or town councils of the

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various cities and towns may, by ordinance, exempt from taxation any renewable energy system

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located in the city or town.

 

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     44-3.1-4. Renewable energy systems property taxation. -- Effective July 1, 2015, the

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office shall annually establish in consultation with the division an appropriate methodology as to

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both the valuation and taxation of commercial and residential renewable energy systems. In

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establishing the tax rates for the renewable energy systems, the office shall convene a stakeholder

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group comprised of members with expertise in municipal property taxes and renewable energy

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technologies and system installations. The office, in consultation with the division, shall release

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the residential and commercial renewable energy system property tax rates for public comment,

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which shall be subject to the rulemaking provisions of chapter 35 of title 42, including, but not

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limited to, § 42-35-3(a)(1) which provides for at least thirty (30) days public notice prior to the

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intended action. The rulemaking process shall be completed prior to the residential and

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commercial renewable energy property tax rates being adopted by the division on or before

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January 1, 2016 and annually thereafter. Further, any stakeholder meetings shall be posted in

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accordance with the provisions of § 42-46-6.

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     SECTION 2. Section 44-3-21 of the General Laws in Chapter 44-3 entitled "Property

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Subject to Taxation" is hereby repealed.

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     44-3-21. Renewable energy systems -- Exemption. -- The city or town councils of the

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various cities and towns may, by ordinance, exempt from taxation any renewable energy system

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located in the city or town.

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     SECTION 3. 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

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     This act would establish methodologies to assess and tax commercial and residential

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renewable energy systems.

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     This act would take effect upon passage.

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LC001771

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