Chapter 268

2003 -- H 6474

Enacted 07/17/03

AN ACT

RELATING TO TAXATION

Introduced By: Representatives Callahan, Long, and Shavers

Date Introduced: May 28, 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, 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