Chapter 041
2003 -- H 6226
Enacted 05/29/03
A N A C T
RELATING
TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
Introduced
By: Representatives Palumbo, Handy, Jacquard, Mumford, and Lima
Date
Introduced: March 20, 2003
It
is enacted by the General Assembly as follows:
SECTION
1. Section 44-5-11.8 of the General Laws in Chapter 44-5 entitled "Levy
and
Assessment
of Local Taxes" is hereby amended to read as follows:
44-5-11.8.
Tax classification. -- (a) Upon the completion of any comprehensive
revaluation
or in the case of the town of Cumberland and the city of Cranston, any
update, in
accordance
with section 44-5-11.6, any city or town may adopt a tax classification plan by
ordinance
with the following limitations: (1) The designated classes of property shall be
limited
to
the four classes as defined in subsection (b). (2) The effective tax rate
applicable to any class
shall
not exceed by 50% the rate applicable to any other class. (3) Any tax rate
changes from one
year
to the next shall be applied such that the same percentage rate change is
applicable to all
classes.
(4) Notwithstanding subdivisions (a)(2) and (a)(3), the tax rates applicable to
wholesale
and
retail inventory within Class 3 as defined in subsection (b) are governed by
section 44-3-29.1.
(5)
Notwithstanding subdivisions (a)(2) and (a)(3), the tax rates applicable to
motor vehicles
within
Class 4 as defined in subsection (b) are governed by section 44-34.1-1. (6) The
provisions
of
chapter 35 of this title relating to property tax and fiscal disclosure applies
to the reporting of
and
compliance with these classification restrictions. (b) Classes of Property. (1)
(i) Class 1:
Residential
real estate consisting of no more than five (5) dwelling units, land classified
as open
space,
and dwellings on leased land including mobile homes. In the city of Providence,
this class
may
also include residential properties containing partial commercial or business
uses and
residential
real estate of more than five (5) dwelling units. A homestead exemption
provision is
also
authorized within this class, provided however, that the actual effective rate
applicable to
property
qualifying for this exemption shall be construed as the standard rate for this
class against
which
the maximum rate applicable to another class shall be determined. (ii) In the
city of
Providence,
the percentage reduction in valuation of residential real estate shall apply to
residential
real estate containing five (5) or less dwelling units. In the case of multiple
dwellings
containing
more than five (5) dwelling units, the percentage reduction in valuation shall
be
applied
to the result of dividing the assessed valuation by the number of dwelling
units in the
multiple
dwelling and multiplying the quotient by five (5). In the city of Providence,
in order to
ensure
compliance with the homestead exemption authorized in this section, the city
council shall
provide
by resolution or ordinance rules and regulations governing eligibility for the
homestead
exemption.
(2) Class 2: Commercial and industrial real estate, residential properties
containing
partial
commercial or business uses and residential real estate of more than five (5)
dwelling
units.
In the city of Providence, properties containing partial commercial or business
uses and
residential
real estate of more than five (5) dwelling units may be included in Class 1.
(3) Class
3:
All ratable tangible personal property. (4) Class 4: Motor vehicles and
trailers subject to the
excise
tax created by chapter 34 of this title. (c) Notwithstanding the provisions of
subsections
(a)(2)
and (a)(3), the city council of the city of Providence may by resolution or
ordinance
provide
for and adopt a tax rate on Class 3, all ratable tangible personal property, in
accordance
with
the following schedule:
Date of Assessment
Tax rate on all
ratable tangible personal
property shall not
exceed the percentages as
indicated below:
December 31, 2000 120% more than the
effective tax rate
applicable to any other
class
December 31, 2001 106% more than the
effective tax rate
applicable to any other
class
December 31, 2002 92% more than the
effective tax rate
applicable to any other
class
December 31, 2003 78% more than the
effective tax rate
applicable to any other
class
December 31, 2004 64% more than the
effective tax rate
applicable to any other
class
December 31, 2005 50% more than the
effective tax rate
applicable to any other
class
SECTION
2. This act shall take effect upon passage.
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LC02803
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