2016 -- H 7126 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION - PORTSMOUTH COMMERCIAL FINES

     

     Introduced By: Representatives Canario, Edwards, Gallison, and Tanzi

     Date Introduced: January 13, 2016

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is

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hereby amended by adding thereto the following section:

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     44-3-9.9. Portsmouth - Exemption or stabilizing of taxes on certain qualified

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commercial property. – Portsmouth - Exemption or stabilizing of taxes on qualified

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property used for manufacturing or commercial purposes in the town of Portsmouth. – The

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Portsmouth town council may authorize real and tangible property taxes to be exempted or

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stabilized for legally permitted commercial or industrial businesses that construct a new facility,

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renovate or expand an existing facility, or add leasehold improvements. Nothing in this section

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shall be deemed to permit the exemption or stabilization for any manufacturing or commercial

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concern locating from one city or town within the state to another.

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     (a) Notwithstanding any provisions of §44-3-9 to the contrary, except as provided in this

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section, the town council of the town of Portsmouth may vote to authorize, for a period not

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exceeding ten (10) years, and subject to the conditions provided in this section, to exempt from

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payment, in whole or part, real and personal property used for manufacturing or commercial

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purposes, or to determine a stabilized amount of taxes to be paid on account of the property,

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notwithstanding the valuation of the property or the rate of tax; provided, that after public

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hearings, at least ten (10) days' notice of which shall be given in a newspaper of general

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circulation in the town, the town council determines that:

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     (1) Granting of the exemption or stabilization of taxes will inure to the benefit of the

 

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town by reason of:

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     (i) The willingness of the manufacturing or commercial concern to locate in the town; or

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     (ii) The willingness of a manufacturing firm to expand facilities with an increase in

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employment or the willingness of a commercial or manufacturing concern to retain or expand its

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facility in the town and not reduce its work force in the town; or

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     (iii) An improvement of the physical plant of the town that will result in long-term

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economic benefits to the town and the state.

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     (2) Granting of the exemption or stabilization of taxes will inure to the benefit of the

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town by reason of the willingness of a manufacturing or commercial firm or concern to replace,

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reconstruct, expand or remodel existing buildings, facilities, fixtures, machinery, or equipment

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with modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase in

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plant or commercial building investments by the firm or concern in the town.

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     (b) Should the town council make the determination in subsections (a)(1)(i) through

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(a)(1)(iii), or subsection (a)(2) of this section, an exemption or stabilization may be granted for

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existing buildings, property, machinery, or facilities owned by businesses already located in the

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town of Portsmouth on January 1, 2016.

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     (c) For the purposes of this section, "real property used for manufacturing or commercial

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purposes" means and includes any building or structure used for offices or commercial enterprises

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including, without limitation any building or structure used for wholesale, warehouse,

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distribution, and/or storage business, used for service industries, or used for any other commercial

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business, and not the land on which the building or structure is situated, and not used for

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residential purposes.

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     (d) For purposes of this section, "personal property used for manufacturing or

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commercial purposes" means any personal property owned by a firm or concern occupying a

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building, structure, and/or land used for commercial purposes and used by such firm or concern in

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its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery,

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stock in trade, and inventory.

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     (e) Except as provided in this section, property for which taxes have been exempted in

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whole or in part, or stabilized pursuant to this section, shall not, during the period for which taxes

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have been exempted or stabilized, be further liable to taxation by the town so long as the property

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is used for the manufacturing or commercial purposes for which the exemption or stabilization

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was granted.

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     (f) Notwithstanding any vote of, or findings by the town council, the property shall be

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assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of

 

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paying the indebtedness of the town and the indebtedness of the state or any political subdivision

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of the state, to the appropriation to any sinking fund of the town, which portion of the tax shall be

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paid in full, and the taxes so assessed and collected shall be kept in a separate account and used

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only for that purpose.

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     (g) Any application for tax exemption or stabilization submitted pursuant to this section

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shall be submitted before an application for development plan review is submitted to the

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Portsmouth planning board, as applicable, or for other such permits and/or approvals that may be

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required from any other town board or commission.

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     (h) Any tax exemption or stabilization granted by the town council pursuant to this

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section shall be applicable for a period beginning on the first day of the fiscal year in which the

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exemption or stabilization is granted.

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     (i) If a property owner whose property tax has been exempted or stabilized pursuant to

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this section becomes delinquent in the payment of its property taxes, or transfers ownership of its

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business, the town council shall have the authority to review and terminate the tax exemption or

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stabilization agreement.

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     (j) Nothing in this section shall be deemed to permit the exemption or stabilization

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provided in this section for any manufacturing or commercial concern relocating from one city or

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town within the state of Rhode Island to the town of Portsmouth.

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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 - PORTSMOUTH COMMERCIAL FINES

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     This act would authorize the town of Portsmouth to exempt or stabilize taxes on qualified

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property used for manufacturing or commercial purposes in the town of Portsmouth.

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     This act would take effect upon passage.

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