2019 -- H 5947

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Representatives Morin, Phillips, Carson, O'Brien, and Casey

     Date Introduced: April 03, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-5-13.11 of the General Laws in Chapter 44-5 entitled "Levy and

Assessment of Local Taxes" is hereby amended to read as follows:

     44-5-13.11. Qualifying low-income housing -- Assessment and taxation.

     Any residential property that has been issued an occupancy permit on or after January 1,

1995, after substantial rehabilitation as defined by the U.S. Department of Housing and Urban

Development and is encumbered by a covenant recorded in the land records in favor of a

governmental unit or Rhode Island housing and mortgage finance corporation restricting either or

both the rents that may be charged to tenants of the property or the incomes of the occupants of

the property, is subject to a tax that equals eight percent (8%) ten percent (10%) of the property's

previous years' gross scheduled rental income or a lesser percentage as determined by each

municipality. Twenty percent (20%) of the tax collected pursuant to this section shall be used by

the local municipalities for public school education aid. This twenty percent (20%) collected

pursuant to this section shall not be used to lower the determination of the state’s share of

foundation education aid, and shall not be taken into consideration in calculating the state’s share

of foundation education aid, as determined pursuant to §§ 16-7.2-3 or 16-7.2-4.

     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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

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     This act would increase the maximum tax for qualifying low-income housing from eight

percent (8%) to ten percent (10%) of the property’s previous year’s gross scheduled rental

income. Twenty percent (20%) of the tax collected pursuant to this increase would be allocated

to the local municipalities for public school education aid. The tax increase would not be used to

lower the determination of the state’s share of foundation education aid, and would not be used in

calculating the state’s share of foundation education aid.

     This act would take effect upon passage.

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