Chapter 000

Chapter 435

2005 -- H 6642

Enacted 07/19/05

A N A C T

RELATING TO THE BLOCK ISLAND HOUSING BOARD

Introduced By: Representatives E Coderre, and Kilmartin

Date Introduced: June 27, 2005

It is enacted by the General Assembly as follows:

SECTION 1. Sections 45-60-3 and 45-60-5 ~~and 45-60-7~~ of the General Laws in Chapter 45-

60 entitled "Block Island Housing Board" are hereby amended to read as follows:

45-60-3. General powers and duties of the board. -- (a) The board shall have all of the

powers necessary and convenient to carry out and effectuate the purposes and provisions of this

chapter, including, without limitation, those general powers provided to a nonprofit corporation

and including, without limiting the generality of the foregoing, the power to:

(1) Upon application from an eligible applicant in a form prescribed by the board,

provide funding in the form of grants, loans, loan guarantees, lines of credit, rental assistance or

any other means determined to further the goals of the trust for eligible activities;

(2) Enter into cooperative agreements with private organizations or individuals or with

any agency or instrumentality of the United States or of this state or town to carry out the

purposes of this chapter;

(3) Purchase, sell, build, develop or restore real estate, the objective of which is to create

affordable year-round and seasonal housing in perpetuity;

(4) Sell property to eligible applicants, such property may be deed-restricted such that

affordability will remain in perpetuity;

(5) Rent or lease real estate the board may own or lease from others;

(6) Solicit bequests and accept donations;

(7) The selling to or renting/leasing to applicants will be done in accordance with the

provisions of the Rhode Island Fair Housing Practices Act, chapter 37 of title 34. ;

(8) Collect taxes on behalf of the town of New Shoreham from those owners engaged in

the business of renting, leasing, letting, or granting a license to use any seasonal rental in

accordance with sections 45-60-6 and 45-60-7, and the taxes so imposed shall be in addition to all

other taxes imposed by law.

(b) The board shall adopt reasonable rules and regulations governing the conduct of trust

affairs, including the acquisition and management of its holdings, not inconsistent with the

provisions of this chapter. All rules and regulations of the trust are subject to the approval of the

town council.

provision shall not be deemed to prevent holding of executive sessions, provided all votes are

taken in public or closed meeting with recorded vote taken in accordance with chapter 46 of title

42, the Rhode Island open meetings law.

45-60-5. Annual report. -- (a) At the end of each fiscal year which is defined to begin on

July 1 and continue through June 30 of each year, the board shall submit a report concerning its

activities to the town council. More frequent reports may be given as requested. The report shall

include, but not be limited to, the following:

(1) A list and description of activities funded by the board during the preceding year;

(2) A list of taxes and/or contributions received by the board, whatever their form or

nature, and the source of the taxes and/or contributions, unless anonymity is a condition of a

particular contribution. The record of individual payments shall be kept confidential, as are sales

and income tax records;

(3) A full report of the board's activities;

(4) Fund statements will be audited annually by a certified public accounting firm

engaged by the housing board.

SECTION 2. Chapter 45-60 of the General Laws entitled "Block Island Housing Board"

is hereby amended by adding thereto the following sections:

45-60-6. Imposition of seasonal rental tax, rate, procedure, enforcement,

exemptions. -- (a) It is hereby declared to be the legislative intent that every owner is exercising a

taxable privilege who engages in the business of renting, leasing, letting, or granting a license to

use any living quarters or sleeping or housekeeping accommodations in, from, or a part of, or in

connection with any seasonal rental. However, any owner who rents, leases, lets, or grants a

license to others to use, occupy, or enter upon any living quarters or sleeping or housekeeping

accommodations in seasonal rentals and who exclusively enters into a bona fide written

agreement for continuous residence for longer than six (6) months in duration at such property is

not exercising a taxable privilege. For the exercise of such taxable privilege, a tax is hereby levied

in an amount equal to no more than one percent (1%) of the actual rent received for such seasonal

rental by owner. Such tax shall apply to seasonal rental whether or not there is in connection with

any of the same any dining rooms, cafes, or other places where meals or lunches are sold or

served to guests. For purposes of this chapter “seasonal rental” shall mean any home or apartment

rented for six (6) months or less.

(b) The owner receiving the rent shall remit the tax to the town treasurer for deposit into

the Block Island housing fund at the end of the rental season but no later than February 15th of the

following year or at some other time as designated by the Block Island housing board.

any person who shall have entered into a bona fide written lease for longer than six (6) months in

duration for continuous residence at any one seasonal rental.

(d) The tax imposed by this section shall constitute a lien on the property on which the

seasonal rental is located in the same manner as and shall be collectible as are liens authorized

and imposed by chapter 9 of title 44.

45-60-7. Collections of seasonal rental tax. -- (a) When receipt of consideration is by

way of property other than money, the tax shall be levied and imposed on the fair market value of

such nonmonetary consideration.

(b) The owner of the seasonal rental shall remit the tax to the town treasurer for deposit

into the Block Island housing fund at the end of the rental season but no later than February 15th

of the following year or at some other time as designated by the Block Island housing board.

records shall disclose the taxes collected from each owner of such seasonal rental. The records of

individual payments shall be kept confidential, as are sales and income tax records.

(d) The collections received by the town treasurer shall be deposited into the Block Island

housing fund for use by the board as provided in this chapter.

(e) The board shall promulgate such rules and shall prescribe and publish such forms as

may be necessary to effectuate the purposes of this section including, but not limited to,

procedures for collection, timing, due dates and mailing of tax notices. The board is authorized to

establish audit procedures and to assess for delinquent taxes.

(f) Any tax levied pursuant to this section shall be in addition to any other tax imposed

pursuant to chapter 44-5-1 et seq., and in addition to all other taxes and fees and the consideration

for the rental or lease.

SECTION 3. There shall be submitted to the qualified electors of the town of New

Shoreham at a special election to be held on November 8, 2005, for their approval the following

question: "Shall the act passed by the general assembly at its January , 2005 session, entitled 'An

Act Relating to the Block Island Housing Board' be approved and the board of canvassers shall

certify the results of said election to the secretary of state.

SECTION 4. This section and section 3 of this act shall take effect upon the passage of

this act, and the remaining sections of this act shall take effect when the board of canvassers shall

certify to the secretary of state that a majority of the qualified electors voting upon the question

contained in section 3 shall have voted to approve the same.

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LC03592

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