Chapter 227

2004 -- S 2517 SUBSTITUTE A

Enacted 07/01/04

A N A C T

RELATING TO TAXATION

Introduced By: Senator Kevin A. Breene

Date Introduced: February 11, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-3-13.8 of the General Laws in Chapter 44-3 entitled "Property

Subject to Taxation" is hereby repealed.

44-3-13.8. Exemption of persons over the age of 65 years in the Town of Exeter. --

(a) The tax assessor(s) shall grant upon a proper claim a tax exemption in accordance with the

schedule of exemptions provided in subsection (e) of this section, provided that "income"

includes the aggregate income of the person and all other persons residing with him or her;

provided further that "income" is computed on a calendar year basis and includes all income of

every nature and description, whether or not taxable, and whether earned or unearned, and

includes, but is not limited to dividends, interest, gross net gains, gifts, pensions, all types of

compensation, social security and veterans benefits. Only one exemption shall be granted to

cotenants, joint tenants, or tenants by the entirety who are sixty-five (65) years of age or older and

occupy the property. (b) The elderly tax exemption as provided in this section is provided

annually, upon timely application, to every qualified person who is a resident domiciary of the

town of Exeter of the age of sixty-five (65) or more years and has reached his or her 65th birthday

by December 31st of the assessment year for which the exemption is sought, continuously

residing in the town of Exeter in a dwelling house or mobile home owned by him or her. At the

time of making application, the applicant shall have been a resident domiciliary of the town of

Exeter for a continuous period of five (5) years ending with the date of assessment for the year for

which the exemption is claimed and shall have owned and had title to his or her dwelling house

for the same five (5) year period. Applications must be completed and filed on or before March

1st of the year for which the exemption is claimed and shall be signed by the applicant and

notarized under the pains and penalties of perjury. (c) The qualification of any applicant for the

elderly tax exemption, as provided in this section, is as follows: (1) Age may be proven by

furnishing to the tax assessor(s) either a birth certificate, certificate of citizenship, baptismal

certificate or certified affidavit, under the pains of perjury, of a third party, of a government

issued ID card. (2) Ownership may be established by furnishing the tax assessor(s) with the date

of purchase and land evidence record of that land. (3) Legal domicile may be established by the

production of a current voters registration card. (4) Income and occupancy may be proven by

incorporating the facts in a sworn application, under the pains and penalties of perjury, (the form

of which is furnished by the assessor(s)) together with copies of all relevant United States and

Rhode Island tax returns. (5) Additionally, the assessor(s) may subject the exemption in this

section to the verifications with respect to qualifications as he or she deems necessary or

appropriate. (6) No property is exempt from taxation which the assessor(s) has adjudged to have

been conveyed to an applicant for the purpose of evading taxation. (d) Any person receiving

and/or entitled to a local property tax exemption or freeze on the effective date of this act [June

30, 1999] based upon age or disability, may continue to claim one exemption or remain on the

frozen tax role as long as the person remains qualified. The exemptions provided in this section

supersede and are in lieu of any local property tax freeze or exemption available due to age or

disability. The exemptions provided in this section are in addition to any other exemption or

exemptions to which the person is entitled. (e) The following schedule is determinative of

exemptions as provided by this section:

Combined taxpayer Individual proportionate More than (1) qualified

income: exemption on 100% of individual residing at

assessed value: dwelling combined

proportionate exemption

100% of assessed value:

$6,000 50% 60%

$8,000 45% 55%

$10,000 40% 50%

$12,000 35% 45%

$14,000 30% 40%

$16,000 25% 35%

$18,000 20% 30%

$20,000 15% 25%

$22,000 10% 20%

$24,000 5% 15%

$26,000 10%.

(f) The tax assessor shall grant upon a proper claim a tax exemption to any person who

meets the requirements contained in subsection (b) of this section, and which exemption is in an

amount not exceeding five thousand dollars ($5,000); this exemption is in addition to any other

exemption from taxation under any other law or ordinance.

     SECTION 2. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation"

is hereby amended by adding thereto the following section:

44-3-13.12. Exemption of persons over the age of 65 years or fully disabled in the

town of Exeter. – (a) In order to encourage, maintain, and preserve a sustainable supply of owner

occupied housing that is affordable for low and moderate income senior citizens and individuals

with disabilities that is in keeping with the rural character of the town of Exeter and that is

consistent with environmental and available infrastructure considerations, the assessor shall grant

upon a proper claim a tax exemption in accordance with the schedule of exemptions provided in

subsection (g) of this section.

(b) The word “income,” as used herein, includes the aggregate income of the person and

all other persons residing with him or her. “Income” shall be computed on a calendar year basis

and shall include all income of every nature and description, whether or not taxable, and whether

earned or unearned, and includes, but is not limited to, interest, gross net gains, gifts, pensions, all

types of compensation, social security and veterans benefits.

(c) This exemption applies to owner-occupants only. Only one (1) exemption shall be

granted to co-tenants, joint tenants, or tenants by the entirety who are sixty-five (65) years of age

or older or who are totally disabled and occupy the subject property.

(d) This exemption applies only to the legally zoned minimally required acreage, primary

dwelling, and its associated accessory structures, owned and occupied by the applicant.

Additional or excess acreage, sites, secondary dwellings and improvements inconsistent with the

legal and conforming use of the primary dwelling are not eligible for this exemption.

(e) The elderly/disabled tax exemption as provided in this section is provided annually,

upon timely application, to every qualified person who is a legally domiciled resident of the town

of Exeter of the age of sixty-five (65) or more years and has reached his or her 65th birthday by

December 31st of the assessment year for which the exemption is sought or who is totally

disabled, and continuously residing in the town of Exeter in a dwelling house or mobile home

owned by him or her. Applications must be completed and filed on or before March 15th of each

year for which the exemption is claimed and shall be signed by the applicant and notarized under

the pains and penalties of perjury.

(f) Proof of the qualification of any applicant for the elderly/disabled tax exemption, as

provided in this section, shall include the following together with such other and further

information as may be deemed reasonable and necessary by the tax assessor or the town council:

(1) Age shall be proven by furnishing to the assessor either a birth certificate, certificate

of citizenship, baptismal certificate or certified affidavit, under the pains of perjury, of a third

party having knowledge, or a government issued ID card.

(2) Ownership shall be established by furnishing the assessor with sufficient evidence of

the date of purchase and certified copies of the documentary land evidence records relating to

acquisition of the subject property.

(3) Legal domicile shall be established by the production of any of the documents

authorized by section 17-1-3.1 to establish residency for voting purposes.

(4) Income and occupancy may be proven by incorporating required facts in a sworn

application signed by the applicant and notarized, under the pains and penalties of perjury, (the

form of which is furnished by the assessor) together with copies of all requested United States

and Rhode Island tax returns and schedules.

(5) Disability may be proven by a licensed medical doctor’s sworn and notarized opinion,

or by satisfactory federal or state documentation certifying such total disability.

(6) Additionally, the assessor may require such other and further verifications or

documents respecting qualifications of the applicant as he or she deems reasonably necessary or

appropriate.

(7) No property shall be exempt from taxation which the assessor determines to have

been conveyed to an applicant for the purpose of evading taxation.

(g) The following schedule shall determine the amount of the exemption to which the

applicant may be entitled pursuant to this ordinance:

Household Income Assessment Reduction

0 - $20,000 50%

$20,001 - $25,000 40%

$25,001 - $30,000 30%

$30,001 - $35,000 20%

$35,001 - $40,000 10%

$40,001 - $52,000 5%

(1) When applying multiple exemptions, the assessor shall first apply the assessment

reduction provided in this section and then apply any other applicable exemptions.

(2) The assessor shall grant upon a proper claim a tax exemption to any qualified person

who meets the requirements contained in subsection (f) of this section. No such exemption shall

exceed five thousand dollars ($5,000). This exemption is in addition to any other exemption from

taxation provided under any other law or ordinance; provided, however, that this exemption will

supercede any previous elderly/disabled freeze or exemption. Any person with a pre-existing

elderly/disabled freeze, sliding scale exemption on the effective date of this ordinance may

choose to either continue on the existing program, or may apply for this exemption.

     SECTION 3. This act shall take effect upon passage.

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LC01851/SUB A

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