Chapter 414

2003 -- S 0981

Enacted 08/06/03

A N A C T

RELATING TO TAXATION-PROPERTY SUBJECT TO TAXATION

Introduced By: Senator Kevin A. Breene

Date Introduced: April 01, 2003

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation"

is hereby amended by adding thereto the following section:

44-3-9.6. Exempting or stabilizing of taxes on qualifying property used for

manufacturing or commercial purposes in the town of Richmond. - - (a) Except as provided

in this section, the town council of the town of Richmond may vote to authorize, for a period not

exceeding twenty (20) years, and subject to the conditions provided in this section, to exempt

from payment, in whole or part, real and personal property used for manufacturing or commercial

purposes, or to determine a stabilized amount of taxes to be paid on account of the property,

notwithstanding the valuation of the property or the rate of tax; provided, that after public

hearings, at least ten (10) days' notice of which shall be given in a newspaper of general

circulation in the town, the town council determines that:

(1) Granting of the exemption or stabilization will inure to the benefit of the town by

reason of:

(A) the willingness of the manufacturer or commercial concern to locate in the town; or

(B) the willingness of a manufacturing firm to expand facilities with an increase in

employment or the willingness of a commercial or manufacturing concern to retain or expand its

facility in the town and not reduce its work force in the town; or

(C) an improvement of the physical plant of the town that will result in long-term

economic benefits to the town and the state;

(2) Granting of the exemption or stabilization of taxes will inure to the benefit of the

town by reason of the willingness of a manufacturing or commercial concern or property owner

to construct new or to replace, reconstruct, convert, expand, retain or remodel existing buildings,

facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures,

machinery, or equipment, resulting in the maintenance of, or an increase in, the manufacturing or

commercial property investment by the firm or property owner in the town.

(b) Should the town council make the determination in subsection (a)(1)(B), subsection

(a)(1)(C), or subsection (a)(2), an exemption or stabilization may be granted for existing

buildings, property, machinery, or facilities owned by businesses already located in the town of

Richmond on the effective date of this section.

(c) For the purposes of this section, commercial property means any structure or facility

used essentially for offices or commercial enterprises.

(d) Except as provided in this section, property for which taxes have been exempted in,

whole or part, or stabilized pursuant to this section shall not, during the period for which taxes

have been exempted or stabilized, be further liable to taxation by the town so long as the property

is used for the manufacturing or commercial purpose for which the exemption or stabilization was

granted.

(e) Notwithstanding any vote of, or findings by the town council, the property shall be

assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of

paying the indebtedness of the town and the indebtedness of the state or any political subdivision

thereof, to the extent assessed upon or apportioned to the town, and the interest thereon, and for

appropriation to any sinking fund of the town, which portion of the tax shall be paid in full, and

the taxes so assessed and collected shall be kept in a separate account and used only for that

purpose.

(f) Any application for tax exemption or stabilization submitted pursuant to this section

shall be submitted before an application for development plan review is submitted to the

Richmond Planning Board pursuant to Chapter 18 of the Code of Ordinances, as amended.

(g) Any tax exemption or stabilization granted by the town council pursuant to this

section shall be applicable for a period beginning on the first day of the fiscal year in which the

exemption or stabilization is granted.

(h) If a property owner whose property tax has been exempted or stabilized pursuant to

this section becomes delinquent in the payment of its property taxes, or transfers ownership of its

business, the town council shall have the authority to review and terminate the tax exemption or

stabilization agreement.

     SECTION 2. This act shall take effect upon passage.

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LC02869

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