A N A C T
RELATING TO HOUSING AND OPEN SPACE
It is enacted by the General Assembly as follows:
SECTION 1. Sections 44-5.1-2, 44-5.1-3 and 44-5.1-6 of the General Laws in Chapter 44-5.1 entitled "Real Estate Non-utilization Tax" are hereby amended to read as follows:
44-5.1-2. Definitions -- The following words, terms, and phrases, when used in this chapter, 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 a city's or town's department of minimum housing.
(3) "Privilege year" means the twelve (12) month period corresponding to the calendar year.
(4) "Vacant and abandoned property" means any property which has is:
(i) Remained A building that has remained continuously unoccupied during the privilege year or a lot, with no existing structure that is littered with trash and obviously abandoned;
(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 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 a city or town for violation of minimum housing code provisions relating to the health or safety of citizens during the privilege year.
(5) "Nonprofit housing organization" means any organization exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code whose exempt purposes include the provision of affordable housing to low and moderate income households.
(6) "Reviewing entity" means the municipal entity designated by the city or town pursuant to Rhode Island general laws section 44-5.1-3.
(7) "Development plan" means a plan to rehabilitate a vacant and abandoned property within a set time frame for a use in conformance with the city or town's comprehensive plan.
(8) "Abutter" means a neighbor whose property touches the property in question.
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 town of North Providence is empowered to impose a tax upon the privilege of utilizing property as vacant and abandoned property within the town during any privilege year commencing with the privilege year beginning January 1, 2001, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.
(e) 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.
(f) The city of Woonsocket 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.
(g) Any city or town not previously empowered is empowered to impose a tax upon the privilege of utilizing vacant and abandoned property within the city or town during any privilege year commencing with the privilege year beginning January 1, 2002, and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.
(h) Implementing ordinance - Cities and towns that are empowered to impose this tax and who choose to impose this tax shall adopt an implementing ordinance. Said ordinance shall:
(1) designate a municipal entity responsible for determining which properties are vacant and abandoned;
(2) establish the mechanism by which the tax is imposed and how said tax is removed from the property once the property has been rehabilitated;
(3) designate a reviewing entity to review and approve a development plan submitted by a nonprofit housing organization or an abutter;
(4) empower the tax assessor to abate the tax if it is imposed in error or if a nonprofit housing organization or an abutter acquires the property for rehabilitation and submits a development plan that complies with the provisions of Rhode Island general laws section 44-5.1-3(i)(2);
(i) Exemptions:
(1) The non-utilization tax authorized by this chapter shall not be imposed on property owned by an abutter or a nonprofit housing organization if: (i) the abutter or nonprofit housing organization submits a proposed development plan which has been approved by the Rhode Island Housing Resources Commission or Rhode Island Housing and Mortgage Finance Corporation to the reviewing entity; (ii) the proposed development plan contains a reasonable timetable for the development or reuse of the property; and (iii) the reviewing entity determines that the proposed development plan is in accordance with the approved comprehensive plan of the city or town and approves it.
(2) The reviewing entity shall deliver a copy of the approved development plan to the tax assessor who shall certify the property as exempt from the non-utilization tax.
(3) Failure of the nonprofit housing organization or abutter, without good cause, to carry out the development or reuse of the property in accordance with the timetable set forth in the approved development plan shall result in the property being subject to the non-utilization tax as of the first date of assessment following the expiration of the timetable in the approved development plan.
(4) The decision of the reviewing entity denying approval of a development plan may be appealed as provided in Rhode Island general laws section 44-5.1-6.
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 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.
(3) Was exempt pursuant to Rhode Island general laws section 44-5.1-3(i) from the imposition of the tax set forth in that section.
SECTION 2. Section 45-24-71 of the General Laws in Chapter 45-24 entitled "Zoning Ordinances" is hereby amended to read as follows:
45-24-71. Appeals -- Appeal of enactment of or amendment to zoning ordinance. -- (a) An appeal of an enactment of or an amendment to a zoning ordinance may be taken to the superior court for the county in which the municipality is situated by filing a complaint within thirty (30) days after the enactment or amendment has become effective. The appeal may be taken by an aggrieved party or by any legal resident or landowner of the municipality or by any association group of residents or landowners whether or not incorporated, of the municipality. The appeal shall not stay the enforcement of the zoning ordinance, as enacted or amended, but the court may, in its discretion, grant a stay on appropriate terms, which may include the filing of a bond, and make other orders that it deems necessary for an equitable disposition of the appeal.
(b) The complaint shall state with specificity the area or areas in which the enactment or amendment does not conform with the comprehensive plan and/or the manner in which it constitutes a taking of private property without just compensation.
(c) The review shall be conducted by the court without a jury. The court shall first consider whether the enactment or amendment of the zoning ordinance is in conformance with the comprehensive plan. If the enactment or amendment is not in conformance with the comprehensive plan, then the court shall invalidate the enactment or the amendment, or those parts of the enactment or amendment which are not in conformance with the comprehensive plan. The court shall not revise the ordinance to conform with the comprehensive plan, but may suggest appropriate language as part of the court decision.
(d) In the case of an aggrieved party, where the court has found that the enactment or amendment of the zoning ordinance is in conformance with the comprehensive plan, then the court shall next determine whether the enactment or amendment works as a taking of property from the aggrieved party. If the court determines that there has been a taking, the court shall remand the case to the legislative body of the municipality, with its findings that a taking has occurred, and order the municipality to either provide just compensation or rescind the enactment or amendment within thirty (30) days.
(e) The superior court retains jurisdiction, in the event that the aggrieved party and the municipality do not agree on the amount of compensation, in which case the superior court shall hold further hearings to determine and to award compensation. The superior court retains jurisdiction to determine the amount of an award of compensation for any temporary taking, if that taking exists.
(f) The court may, in its discretion, upon the motion of the parties or on its own motion, award reasonable attorney's fees to any party to an appeal, including a municipality.
SECTION 3. This act shall take effect upon passage.