A N A C T
RELATING TO LEVY AND ASSESSMENT OF LOCAL TAXES
It is enacted by the General Assembly as follows:
SECTION 1. Sections 44-5-20.1, 44-5-20.2, 44-5-20.3, and 44-5-20.4 of the General Laws in Chapter 44-5 entitled "Levy and Assessment of Local Taxes" are hereby amended to read as follows:
44-5-20.1. Property tax classification in Pawtucket - Eligibility. -- (a) The city of Pawtucket may request to be certified by the director of administration for property tax classification in any year, except that in 1986 an affirmative resolution of the city council of the city of Pawtucket requesting the classification shall accompany the request to the director of administration. Subsequent requests by the city of Pawtucket to be certified by the director of administration need not be accompanied by an affirmative resolution of the city council.
(b) Property tax classification in the city of Pawtucket shall not be implemented until the assessor has certified in writing to the director of administration that the assessments of all real and personal property and motor vehicles that the assessor proposes to make are at full and fair cash value.
(c) Upon receipt of the certification, the director shall determine the qualifications of the assessor to perform classification as required by the department of administration and if the assessor is so qualified, he or she shall certify the city for property tax classification for the year requested. is hereby authorized to adopt a system of property tax classification.
44-5-20.2. Property tax classification in Pawtucket -- List of ratable property. -- (a) On or before April 1, except in 1984, in which case the time shall be thirty (30) days after April 10, 1984, the assessor in the city of Pawtucket, after certification for classification, shall submit to the director of administration a list containing the true, full, and fair cash value of the ratable estate and motor vehicles and shall classify the property according to the following use:
(1) "Class 1" shall include:
(i) Residential property is property used or held for human habitation containing one or more dwelling units including rooming houses and mobile homes with facilities designed and used for living, sleeping, cooking, and eating on a non-transient basis. This property includes accessory land, buildings, or improvements incidental to the habitation and used exclusively by the residents of the property or their guests. This property shall not include a hotel or motel.
(ii) Open space includes "farm," "forest" and "open space land" as defined in accordance with section 44-27-2, as amended.
(2) "Class 2" shall include, but not be limited to:
(i) Commercial property is property used or held for use for business purposes and not specifically includible in another class, including any business, retail, trade, service, recreational, agricultural, artistic, sporting, fraternal, governmental, educational, or medical enterprise. This property shall include a hotel or motel.
(ii) Industrial property is property used or held for use for manufacturing, milling, converting, producing, processing, or fabricating materials; the extraction or processing of materials unserviceable in their natural state to create commercial products or materials; the mechanical, chemical, or electronic transformation of property into new products and any use that is incidental to or an integral part of that use, whether for profit or non-profit purposes; and property used or held for use for the storage, transmitting, and generating of utilities regulated by the public utilities commission.
(iii) Personal property, heretofore subject to tax, includes all goods, chattels, and effects, wherever they may be, except such as are exempt from taxation by the laws of the United States or of this state. Personal property shall be identified as to its associated class of real property in the preceding description.
(b) Where real property is used or held for more than one purpose and the uses result in different classifications, the assessor shall allocate to each classification the percentage of true and fair cash value of the property devoted to each use.
(a) Under the system of classification of taxable property adopted by the city of Pawtucket, all ratable property in the city of Pawtucket shall be classified by the assessor as follows:
(1) Class 1 - all residential real estate, which consists of not more than five (5) dwelling units and all residential real estate that consists of six (6) dwelling units in which at least one (1) unit is owner occupied. Class 1 includes all mobile/manufactured homes;
(2) Class 2 - all commercial and industrial real estate and all residential real estate which consists of six (6) dwelling units in which no units are owner occupied and all residential real estate which consists of more than six (6) dwelling units;
(3) Class 3 - all ratable tangible personal property;
(4) Class 4 - all motor vehicles and trailers subject to the excise tax created by chapter 34 of title 44.
(b) Where real property is used or held for more than one purpose and the uses result in different classifications, the assessor shall allocate to each classification the percentage of true and fair cash value to the property devoted to each use.
44-5-20.3. Property tax classification in Pawtucket -- Tax levy determination. -- Property tax classification in Pawtucket - Duties of assessor. - In the fiscal year ending June 30, 1990, and in each subsequent fiscal year prior to the fiscal year in which the next revaluation of taxable real estate required by section 44-5-11 is implemented, the motor vehicle excise tax which includes every vehicle and trailer registered under chapter 3 of title 31, as amended, shall be no more than fifteen percent (15%) of the total tax levy. In the fiscal year in which the next revaluation of taxable real estate required by section 44-5-11 is implemented and in each fiscal year thereafter, the motor vehicle excise tax which includes every vehicle and trailer registered under chapter 3 of title 31, as amended, shall be no more than nine percent (9%) of the total tax levy. The director of administration, after having received the list of all ratable property, shall determine a minimum residential factor for the city which shall be sixty-five percent (65%) of the full and fair cash value of taxable residential and open space property divided by the full and fair cash value of all taxable property, excluding motor vehicles, in the city provided, however, that the percent is not less than that required to provide the percentage of the total tax levy imposed on the residential and open space classes in the preceding year. The minimum residential factor shall be subject to such adjustment upward as may be required to provide that the percentage of the total tax levy imposed on any class of taxable property shall not exceed one hundred fifty-five percent (155%) of the full and fair cash value of the taxable property in the class divided by the full and fair cash value of all taxable property in the city, excluding motor vehicles. The minimum residential factor so determined shall be sent to the city of Pawtucket on or before May 1 of each year in which there is a filing of intent to use the factor in determining the percentages of the local tax levy to be borne by each class of property pursuant to section 44-5-20.5. After the first year, the rate of taxation of Class 2 properties shall not be increased over the rate of taxation of the previous year until the rate of taxation of Class 1 properties is equal to the rate of taxation of Class 2 properties and thereafter the rate of taxation of Class 1 and Class 2 properties shall remain equal. (a) The assessor of the city of Pawtucket on or before June 15 of each year shall make a full and fair cash valuation of all the estate, real and personal, including motor vehicles and trailers, subject to taxation, and determine the assessed valuation of each property class.
(b) The assessor shall provide to the finance director a list containing the full and fair cash valuation of each property class. The finance director shall have the authority to apply different rates of taxation to each class and to determine the tax due and payable on the property, provided however, that such rates shall be pursuant to an annual tax resolution approved by the city council in the same manner as is provided for budget approval in the city charter, and provided further that such rate of taxation shall be uniform within each class, and provided further, that for each year, class 2 property rates shall not be more than one hundred and thirty percent (130%) of class 1 property tax rates.
44-5-20.4. Property tax classification in Pawtucket -- Duties of assessor.-- Property tax classification in Pawtucket - Compliance with state law. -- (a) The assessor of the city of Pawtucket after certification by the director of administration for property tax classification shall at the time appointed therefor make a full and fair cash valuation of all the estate, real and personal, and motor vehicles subject to taxation therein, and the determination shall be the assessed valuation of ratable property and motor vehicles.
(b) The assessed valuation of property subject to taxation shall be classified as follows:
(1) Class 1: residential, open space;
(2) Class 2: commercial, industrial, personal property.
(c) The resulting amount shall be the taxable value of each class of property to which shall apply the tax rates applicable to each class, as determined under section 44-5-20.5, of the city of Pawtucket, to determine the tax due and payable on the property.
(d) The assessor of the city of Pawtucket shall attend the classification certification program to be conducted by the director of administration pursuant to directives issued by the director of administration. After the assessor has attended the program, the director shall certify the assessor as qualified to assess property according to classification. (a) All property in class 3, which is classified as inventory, shall be taxed in accordance with section 44-3-29.1 of the general laws of Rhode Island regarding the phasing out of taxes on said property.
(b) All property in class 4 shall be taxed in accordance with chapter 34.1 of title 44 of the general laws of Rhode Island regarding the phasing out of taxes on said property.
SECTION 2. This act shall take effect upon passage.