2019 -- H 6232

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LC002848

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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 -- PROVIDENCE HOMESTEAD EXEMPTION

     Introduced By: Representatives McKiernan, Williams, Almeida, Lima, and Mendez

     Date Introduced: June 19, 2019

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

Taxes" is hereby amended by adding thereto the following section:

     44-5-87. Providence -- Homestead exemption.

     Notwithstanding any provision with within § 44-5-11.8 to the contrary:

     (a) The city of Providence is authorized to annually fix, by ordinance, the amount, if any,

of a homestead exemption with respect to assessed value from local taxation on taxable owner-

occupied real property used for residential purposes in the city of Providence and to grant

homestead exemptions to the owner(s) of that residential real estate.

     (b) The homestead exemption in the city of Providence may be:

     (1) A flat amount;

     (2) A uniform rate; or

     (3) A variable rate based on the assessed value of the real property, implemented by

exempting a set amount of assessed value at no greater than fifty percent (50%), and exempting

assessed value in excess of said set amount at no less than twenty percent (20%).

     (c) If the homestead exemption is a uniform or variable rate as described by subsections

(b)(2) or (b)(3) of this section, the city may cap said exemption at a flat dollar amount.

     (d) If the homestead exemption is a flat amount or a variable rate as described by

subsections (b)(1) or (b)(3) of this section, the rate used for purposes of § 44-5-11.8(c) shall be

the base residential rate exclusive of any homestead exemptions.

     (e) The city council of the city of Providence may provide for a proration of the

homestead exemption in cases where title to the property passes from those not entitled to the

exemption to those who are entitled to claim the exemption, or in cases where title to the property

passes from those entitled to the exemption to those who are not entitled to claim the exemption.

     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 -- PROVIDENCE HOMESTEAD EXEMPTION

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     This act would authorize the city of Providence to adopt by ordinance a homestead

exemption for local taxation on owner-occupied residential real property. The homestead

exemption may either be a flat amount, a uniform rate, or a variable rate based on a percentage of

the assessed value.

     This act would take effect upon passage.

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