Chapter 112

2005 -- S 1004 AS AMENDED

Enacted 06/29/05

A N A C T

RELATING TO TAX EXEMPTION OF CERTAIN PROPERTY IN THE TOWN OF RICHMOND

Introduced By: Senators Breene, Blais, and Sosnowski

Date Introduced: April 07, 2005

It is enacted by the General Assembly as follows:

     Section 1. Chapter 86 of the Public Laws of 1984, entitled "An Act Exempting Certain

Property From Taxation in the Town of Richmond," is hereby amended to read as follows:

SECTION 1. The town council of Richmond may, by ordinance, grant to every person, a

citizen and resident of the town of Richmond of the age of 65 or more years or to a totally

disabled person under 65 years of age and residing in the town of Richmond in a dwelling house

owned by him which is a constituent part of his real property, on proper claim being made

therefore a tax exemption based upon the following schedule:

Taxpayers having an annual income from all sources of:

$5,000 or less, an exemption of $15,000 or 55% of assessed valuation, whichever is

greatest.

$6,000 or less, an exemption of $14,000 or 50% of assessed valuation, whichever is

greatest.

$7,000 or less, an exemption of $13,000 or 45% of assessed valuation, whichever is

greatest.

$8,000 or less, an exemption of $12,000 or 40% of assessed valuation, whichever is

greatest.

$9,000 or less, an exemption of $11,000 or 35% of assessed valuation, whichever is

greatest.

$10,000 or less, an exemption of $10,000 or 30% of assessed valuation, whichever is

greatest.

$11,000 or less, an exemption of $9,000 or 25% of assessed valuation, whichever is

greatest.

$12,000 or less, an exemption of $8,000 or 20% of assessed valuation, whichever is

greatest.

$13,000 or less, an exemption of $6,000 or 15% of assessed valuation, whichever is

greatest.

$14,000 or less, an exemption of $4,000 or 10% of assessed valuation, whichever is

greatest.

$15,000 or less, an exemption of $2,000 or 5% of assessed valuation, whichever is

greatest.

For the purpose of this act the income of a husband shall be deemed to include the total

income of his wife or the income of a wife shall be deemed to include the total income of her

husband, and only one such exemption shall be allowed in favor of a married couple.

Only one such exemption shall be granted to co-tenants, joint tenants and tenants by the

entirety even though all of said co-tenants, joint tenants or tenants by the entirety are 65 years of

age or over or all occupy said property. In addition to the requirement of domicile within the town

of Richmond, at the time of making application, the applicant must have been a resident of said

town for a period of three years ending with the date of assessment for the year for which

exemption is claimed; and further, the applicant for this exemption must have owned and had title

to his dwelling house for the same three-year period; provided, however, that such exemption

shall not be allowed in favor of any person unless he or she shall have presented to the assessor a

true and exact account of his or her ratable estate as provided for in title 45, chapter 5, sections 15

and 16 of the general laws of 1956, as amended, for the year for which exemption is claimed,

together with due evidence that he or she is so entitled to such exemption. An applicant who is

totally disabled must also provide proof of one hundred percent (100%) social security disability

on forms designated by the assessor.

Section 2. No income bearing residential property, business property or combination of

business and residential property, owned and occupied by any person or persons 65 years of age

or over shall be entitled to the exemption herein provided; provided, however, that an owner of a

two tenement or duplex dwelling who is otherwise entitled to an exemption under this act shall

receive an exemption in proportion to the whole for that area used by the owner so entitled,

providing income requirements are met which would exclude rental income for the second

tenement or dwelling unit.

Professional persons who operate and conduct their respective professions from their

residences shall not be entitled to the exemption provided for herein. The practice of said

profession from any residence shall be deemed, for the purpose of this act, to constitute it as

income-bearing property.

Section 3. All exemptions shall terminate upon the conveyance of the subject property,

the death of the person exempted, the moving of such person from the town of Richmond; and

when the subject property is so altered as to character and use that the same becomes subject to

the provisions of section 2 hereof.

Section 4. Definitions, when used in the act:

(a) "Income" in section 1 hereof means all funds received by an individual and or his or

her spouse from whatever source derived including, but not limited to, realized capital gains,

gifts, and, in their entirety, pension, annuity, retirement and social security benefits, and shall

include the income of any other person (other than a full-time student) residing in said residential

structure. Income shall be determined on the basis of the calendar year ending with date of

assessment for the year for which exemption is claimed and each calendar year thereafter.

(b) "Resident" means one legally domiciled within the town of Richmond for a period of

three years ending with the date of assessment for the year for which the exemption is claimed.

Mere seasonal or temporary residence within the town of whatever duration shall not constitute

domicile within the town for the purpose of this act. Absence from this town for a period of

twelve (12) months shall be prima facie evidence of abandonment of domicile in this town. The

burden of establishing legal domicile within the town shall be upon the applicant.

Section 5. No exemption from taxation on the valuation of real property, as herein

provided, shall be allowed except upon written application therefor, which application shall be on

a form prescribed by the assessor. The assessor may at any time inquire into the right of a

claimant to the continuance of an exemption hereunder, and for that purpose he may require the

filing of a new application or the submission of such proof as he shall deem necessary to

determine the right of the claimant to continuance of such exemption. Any financial statement

subsequently found to be untrue shall cause the assessor to record a lien in the town clerk's

records for the amount or amounts that should have been paid to the town. The lien shall continue

in effect until the taxes are paid in full. The assessor shall cause to be sent to each person

presently receiving an elderly exemption, a reminder in December of each year outlining the

basic requirements and sources and amounts of income necessary to be eligible. The remainder

shall note also, that the necessary forms are in the town clerk's office only. The town clerk's office

will assist in filing in applications and notarizing same.

Section 6. Nothing contained herein shall abrogate or affect the authority conferred upon

the assessor by the provisions of section 44-3-3, subparagraph 16 of the general laws of Rhode

Island, 1956, as amended.

Section 7. The question of the acceptance or rejection of this act shall be submitted to the

qualified electors of said town, entitled to vote upon a proposition to impose a tax or for the

expenditure of money at any special or regular financial town meeting to be held after the passage

of this act, and no other action shall be taken under the authority of this act unless a majority of

said electors voting on said question at said town meeting, vote to accept this act, such vote to be

taken by paper ballot or by standing vote.

Any action taken in the year 1984 by the town of Richmond at an annual or special

financial town meeting shall be as valid and effective as if this act were in effect at the time of

issue posting and publication of the warrant for such meeting and at the time of the taking of such

action. The town clerk of the town of Richmond shall forthwith after said town meeting certify to

the secretary of state the result of this vote upon the question submitted.

SECTION 2. This section and section 7 of this act shall take effect upon passage and the

remaining sections shall take effect if and when the electors of the town of Richmond qualified to

vote upon a proposition to impose a tax or for the expenditure of money vote to accept this act.

(A) In order to encourage, maintain, and preserve a sustainable supply of owner-occupied

housing that is affordable to low and moderate income older people and totally disabled people,

the town council of Richmond may, by ordinance, grant to every person who is a citizen and

resident of the town, and who is sixty-five (65) or more years of age, or is less than sixty-five (65)

years of age and totally disabled, and is residing in the town in a dwelling house or mobile home

that has been owned by him or her for one year before the date of the assessment for which the

exemption is claimed, on proper claim being made therefor, a tax exemption proportionate to total

gross household income.

(B) An ordinance enacted pursuant to this act shall provide a schedule of tax exemptions

of sixty percent (60%) or less, for total gross household incomes of $9,346 or more. The town

council shall have the authority to adjust the schedule annually, by amendment to said ordinance,

to accommodate changing economic conditions, including, but not limited to, changes in the

national cost of living index.

(C) The word "income" as used herein means the aggregate income of the property owner

and all persons living with him or her in the household, from whatever source derived, including,

but not limited to, realized capital gains, gifts, and, in their entirety, pensions, annuities,

retirement benefits, and social security benefits. Income shall be based on the calendar year

preceding the year for which the exemption is claimed.

(D) The ordinance shall provide that the exemption shall be available only to owner-

occupants. Only one exemption shall be granted for each residential property, even if more than

one eligible person is an owner who resides there.

(E) The ordinance shall provide that the exemption is available annually, upon timely

application, to persons who have reached their sixth-fifth (65th) birthday by December 31 of the

calendar year preceding the year for which the exemption is claimed or to persons who are totally

disabled, and that the tax assessor shall be authorized to require whatever documentation he or

she deems reasonably necessary to verify eligibility. Applications shall be made on or before

April 15 of each year for which the exemption is claimed.

(F) The ordinance shall provide that no income-bearing property, business property, or

combination business and residential property shall be entitled to the exemption; provided,

however, that the owner of a two-household dwelling who is otherwise entitled to an exemption

shall receive an exemption in proportion to the area occupied by the owner, and the rental income

from the second dwelling unit shall not be considered income for eligibility purposes.

Professional persons who conduct their profession from their residence shall not be entitled to an

exemption.

(G) The ordinance shall provide that property shall not be eligible for a tax exemption if

it has been conveyed to the applicant solely for the purpose of evading taxation. If a property

owner is determined to have received a tax exemption through fraudulent transfer of the property

or through false or misleading statements on a tax exemption application form, the assessor shall

have the authority to record a lien on the property in the land evidence records for the amount of

tax that should have been paid to the town.

(H) Nothing contained herein or in an ordinance enacted pursuant to the authority herein

shall abrogate the authority conferred on the tax assessor by Rhode Island general laws section

44-3-3(16).

SECTION 2. The question of acceptance or rejection of this act shall be submitted to the

qualified electors of Richmond who are entitled to vote upon a proposition to impose a tax or

expend money, at any annual or special financial town meeting during 2005. Said vote shall be

taken by standing vote or by paper ballot. Acceptance of this act shall be by majority vote. Any

action taken in the year 2005 at an annual or special financial town meeting shall be as valid as if

this act were in effect at the time the warrant for said town meeting was published and at the time

said annual or special financial town meeting took place, and any ordinance enacted pursuant to

this act shall apply to any application for exemption filed during 2005. After said financial town

meeting, the town clerk shall forthwith certify to the secretary of state the result of the vote.

     SECTION 3. This section and section 2 of this act shall take effect upon passage, and the

remaining section shall take effect upon approval by the qualified electors of Richmond.      

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LC02980

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