2021 -- S 0975

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LC002760

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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 -- PROPERTY SUBJECT TO TAXATION -- SMITHFIELD

     Introduced By: Senator Stephen R. Archambault

     Date Introduced: June 22, 2021

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

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

hereby amended by adding thereto the following section:

     44-3-9.11. Smithfield - Exemption or stabilizing of taxes on qualifying property used

for manufacturing or commercial purposes.

     (a) Except as provided in this section, the town council of the town of Smithfield may vote

to authorize, for a period not to exceed ten (10) years, and subject to the conditions provided in this

section, to exempt from payment, in whole or in part, real and/or personal property used for

manufacturing or commercial purposes, or to determine a stabilized amount of taxes to be paid on

account of the property, notwithstanding the valuation of the property or the rate of tax; provided,

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

having a general circulation in the town, the town council determines that:

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

by reason of:

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

town; or

     (ii) The willingness of a manufacturing or commercial firm or concern to expand facilities

with an increase in employment; or

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

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

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

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

or commercial building investment by the firm or concern in the town.

     (b) For purposes of this section, "real property used for commercial purposes" includes any

building or structure used for offices or commercial enterprises including, without limitation, any

building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used

for service industries, or used for any other commercial business, and the land on which the building

or structure is situated and not used for residential purposes.

     (c) For purposes of this section, "personal property used for commercial purposes" means

any personal property owned by a firm or concern in its commercial enterprise including, without

limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.

     (d) Except as provided in this section, property, the payment of taxes or which is subject

to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption

or stabilization of the amount of taxes is granted, be further liable to taxation by the town in which

the property is located so long as the property is used for the manufacturing or commercial purposes

for which the exemption or stabilized amount of taxes was made.

     (e) Notwithstanding any vote and findings by the town council, the property shall be

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

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

subdivision of the state to the extent assessed upon or apportioned to the town, and the interest on

the indebtedness, and for appropriation to any sinking fund of the town, which portion of the tax

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

used only for that purpose.

     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 -- PROPERTY SUBJECT TO TAXATION -- SMITHFIELD

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

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

     This act would take effect upon passage.

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LC002760

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