Chapter 197

2005 -- S 1069

Enacted 07/07/05

A N A C T

RELATING TO TAXATION -- GLOCESTER

Introduced By: Senators P Fogarty, Gallo, Walaska, Tassoni, and Breene

Date Introduced: May 05, 2005

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 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) of this section.

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

the rate applicable to any other class, except in the city of Providence, and the town of Glocester;

however, in the year following a revaluation or statistical revaluation or update, the city or town

council of any municipality may, by ordinance, adopt tax rates for the property class for all

ratable tangible personal property no greater than twice the rate applicable to any other class

provided that the municipality documents to, and receives written approval from the office of

municipal affairs that the rate difference is necessary to ensure that the estimated tax levy on the

property class for all ratable tangible personal property is not reduced from the prior year as a

result of the revaluation or statistical revaluation.

(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, except in the city of Providence, and the town

of Glocester.

(4) Notwithstanding subdivisions (2) and (3) of this subsection, the tax rates applicable

to wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are

governed by section 44-3-29.1.

(5) Notwithstanding subdivisions (2) and (3) of this subsection, the tax rates applicable

to motor vehicles within Class 4 as defined in subsection (b) of this section 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, except in the city of Providence, and the town of Glocester.

(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.

Glocester may by ordinance provide for and adopt a tax rate on various classes as it shall deem

appropriate. Providence and Glocester shall be able to establish homestead exemptions up to fifty

percent (50%) of value. The calculation provided in subsection (b)(1)(i) shall not be used in

setting the differential tax rates. The tax rate for Class 2 shall not be more than two times the tax

rate of Class 1; the tax rate applicable to Class 3 shall not exceed the tax rate of Class 1 by more

than two hundred percent (200%).

(d) Notwithstanding the provisions of subsection (a) of this section the town council of

the town of Middletown may hereafter, by ordinance, adopt a tax classification plan in

accordance with the provisions of subsections (a) and (b) of this section, to be applicable to taxes

assessed on or after the assessment date of December 31, 2002.

SECTION 2. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

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

44-5-11.12. Residential real estate classification -- Glocester. – Notwithstanding any

provision of section 44-5-11.8 to the contrary, the town of Glocester may adopt a separate tax

classification for unimproved residentially zoned real property excepting property assessed

pursuant to section 44-27-1 et seq.

44-5-11.13. Homestead exemption in the town of Glocester. – The town council of the

town of Glocester is authorized to annually fix the amount, if any, of a homestead exemption with

respect to assessed value from local taxation on taxable real property used for residential purposes

in the town of Glocester and to grant homestead exemptions to the owner or owners of residential

real estate in an amount not to exceed forty percent (40%) of the assessed value. The exemption

only applies to property used exclusively for residential purposes, and improved with a dwelling

containing less than five (5) units. In order to determine compliance with the homestead

exemption as outlined in this section, the town council shall provide by ordinance rules and

regulations governing eligibility for the exemption established by this section.

SECTION 3. This act shall take effect upon passage.

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LC03240

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