It is enacted by the General Assembly as follows:

SECTION 1. Title 44 Chapter 44-5.1 of the General Laws entitled "Real Estate Nonutilization Tax of the Cities of Providence, Pawtucket and Cranston " is hereby amended to read as follows:

SECTION 2. Sections 44-5.1-1, 44-5.1-2, 44-5.1-3, 44-5.1-4, 44-5.1-5 and 44-5.1-6 of the General Laws in Chapter 44-5.1 entitled "Real Estate Nonutilization Tax of the Cities of Providence, Pawtucket and Cranston" are hereby amended to read as follows:

44-5.1-1. Purpose -- (a) There are numerous vacant and abandoned properties throughout the cities of Providence, Pawtucket and Cranston. and towns of Rhode Island.

(b) The existence of vacant and abandoned properties within the a city or town contributes to the deterioration of its viable real estate.

(c) Vacant and abandoned properties sometimes place a greater demand on essential city or town services such as police and fire protection than do occupied properties comparably assessed for real estate tax purposes.

(d) The owners of vacant and abandoned properties do not always contribute a fair share of the costs of providing the foregoing essential city or town services financed in part by real estate tax revenues, which revenues are solely based on the assessed value of properties.

(e) Some properties are deliberately left vacant by their owners in the hope that real estate values will increase, thereby enabling the owners to sell these properties at a substantial profit without making any of the required repairs or improvements to the property.

(f) The nonutilization of property whether for profit speculation, tax benefit, or any other purposes is the making use of that property and as such, is a privilege incident to the ownership of the property.

(g) Owners of vacant properties must be encouraged to use the properties in a positive manner to stop the spread of deterioration and to increase the stock of viable real estate within the a city. or town.

(h) Owners of vacant and abandoned properties must be required, through the a city's or town's power to tax, to pay a fair share of the cost of providing certain essential city or town services.

44-5.1-2. Definitions -- The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except in those instances where the context clearly indicates a different meaning:

(1) "Actively marketed" means good faith efforts by the owner of the property to obtain one or more occupants of the property. These good faith efforts may include, without limitation, one or more of the following: (i) making substantial financial expenditures in comparison with the value of the property; or (ii) listing the property for sale or lease, or both, with one or more real estate brokers, for a price and on terms, or for a rental that is realistic considering the fair market or fair market rental value of the property; or (iii) advertising, using one or more signs on the property and at least one other medium, the availability of the property for sale or rental for a price and on terms, or at a rental that is realistic considering the fair market value or fair rental value of the property. Sporadic attempts to sell or lease the property during the privilege year may be viewed as not constituting a good faith marketing effort.

(2) "Continuously unoccupied" means any property which is listed during the entire privilege year as vacant in the records of the a city's or town's department of minimum housing shall be deemed continuously unoccupied during the privilege year.

(3) "Privilege year" means the twelve (12) month period corresponding to the calendar year.

(4) "Vacant and abandoned property" means any property which has:

(i) Remained continuously unoccupied during the privilege year;

(ii) (A) In the case of property containing one or more buildings used in whole or in part for one or more dwelling units immediately prior to the time the property became vacant, been under continuous designation as vacant by the a city's or town's department of minimum housing during the privilege year; or

(B) In the case of property containing one or more buildings none of which were used in whole or in part for one or more dwelling units immediately prior to the time the property became vacant, been under continuous citation by an agency of the a city or town for violation of minimum housing code provisions relating to the health or safety of citizens during the privilege year.

44-5.1-3. Imposition of tax -- (a) The city of Providence is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 1984, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

(b) The city of Pawtucket is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 1997, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

(c) The city of Cranston is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 1997, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

(d) The city of East Providence is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 2000, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

44-5.1-4. Rate of tax -- The tax authorized by this chapter shall be measured by the assessed value of the real estate at the rate of ten dollars ($10.00) for each one hundred dollars ($100) of the assessed value of the real estate as most recently returned by the tax assessor of the a city or town.

44-5.1-5. Date on which taxes due -- The tax imposed under authority of this chapter shall be due and payable in the same manner as other municipal taxes are due in the a city or town.

44-5.1-6. Appeals -- (a) In any appeal from the imposition of the tax set forth in this chapter, the tax review board of the a city or town shall find in favor of an appellant who shows that the property assessed:

(1) Was actively marketed during the privilege year; or

(2) Was occupied for substantial portions of the privilege year, notwithstanding its designation by the department of minimum housing.

(b) Nothing contained in this section shall be deemed to enlarge or diminish any other right of appeal that an appellant may possess pursuant to the general or public laws, or city or town ordinances.

SECTION 3. This act shall take effect upon passage.