Chapter 04-009

2004 -- H 8282

Enacted 05/07/04

A N A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

Introduced By: Representatives Rose, Dennigan, Savage, Coogan, and Moura

Date Introduced: March 11, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

Taxes" is hereby amended by adding thereto the following section:

44-5-11.10. Real estate tax classification -- East Providence. – Notwithstanding any

provision within section 44-5-11.8 to the contrary:

(a) Upon the completion of any comprehensive revaluation in accordance with section

44-5-11.6, the city of East Providence may adopt a tax classification plan by ordinance with the

following limitations:

(1) The designated classes of property shall be limited to the four(4) classes as defined in

subsection (b).

(2) The effective tax rate applicable to any class shall not exceed by fifty percent (50%)

the rate applicable to any other class.

(3) Any tax rate changes from one (1) 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) Class 1: Residential real estate consisting of no more than three (3) dwelling units,

land classified as open space, and dwellings on leased land including mobile homes. 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.

(2) Class 2: Commercial and industrial real estate, residential properties containing partial

commercial or business uses and residential real estate of more than three (3) dwelling units.

(3) Class 3: All ratable tangible personal property; excluding wholesale and retail

inventory, which shall be taxed in accordance with section 44-3-29.1 of the Rhode Island general

laws.

(4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of

this title.

     SECTION 2. This act shall take effect upon passage.

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LC02925

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