2021 -- S 0238

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LC001069

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Senator Roger Picard

     Date Introduced: February 10, 2021

     Referred To: Senate Housing & Municipal Government

     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%) of the property's previous years' gross

scheduled rental income or a lesser percentage as determined by each municipality; provided, that

where twelve percent (12%) or more of the residential units within a municipality qualify for low-

income housing, the tax that may be charged is ten percent (10%) of the property's current year's

gross scheduled rental income or a lesser percentage as determined by each municipality.

     SECTION 2. This act shall take effect upon passage.

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LC001069

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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 permit a municipality, in which twelve percent (12%) of the housing in a

municipality qualifies for low-income housing, to charge a tax up to ten percent (10%) of the

current year's gross scheduled rental income.

     This act would take effect upon passage.

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LC001069

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