Chapter 383

2006 -- S 2088 SUBSTITUTE A

Enacted 07/07/06

A N A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

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

Date Introduced: January 17, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-5-12 of the General Laws in Chapter 44-5 entitled "Levy and

Assessment of Local Taxes" is hereby amended to read as follows:

44-5-12. Assessment at full and fair cash value. -- (a) All real property subject to

taxation shall be assessed at its full and fair cash value, or at a uniform percentage of its value,

not to exceed one hundred percent (100%), to be determined by the assessors in each town or

city; provided, that:

      (1) Any residential property encumbered by a covenant recorded in the land records in

favor of a governmental unit or Rhode Island housing and mortgage finance corporation

restricting either or both the rents that may be charged or the incomes of the occupants shall be

assessed and taxed in accordance with section 44-5-13.11;

      (2) In assessing real estate which is classified as farm land, forest, or open space land in

accordance with chapter 27 of this title the assessors shall consider no factors in determining the

full and fair cash value of the real estate other than those which relate to that use without regard

to neighborhood land use of a more intensive nature;

      (3) Warwick. - The city council of the city of Warwick is authorized to provide, by

ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick

who makes any improvements or additions on his or her principal place of residence in the

amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the

city of Warwick, is exempt from reassessment of property taxes on the improvement or addition

until the next general citywide reevaluation of property values by the tax assessor. For the

purposes of this section, "residence" is defined as voting address. This exemption does not apply

to any commercial structure. The property owner shall supply all necessary plans to the building

official for the improvements or addition and shall pay all requisite building and other permitting

fees as now are required by law; and

      (4) Central Falls. - The city council of the city of Central Falls is authorized to provide,

by ordinance, that the owner of any dwelling of one to eight (8) units who makes any

improvements or additions to his or her residential or rental property in an amount not to exceed

twenty thousand dollars ($20,000) as determined by the tax assessor of the city of Central Falls is

exempt from reassessment of property taxes on the improvement or addition until the next general

citywide reevaluation of property values by the tax assessor. The property owner shall supply all

necessary plans to the building official for the improvements or additions and shall pay all

requisite building and other permitting fees as are now required by law.

(5) Tangible property shall be assessed according to the asset classification table as

defined in section 44-5-12.1.

      (b) Municipalities shall make available to every land owner whose property is taxed

under the provisions of this section a document which may be signed before a notary public

containing language to the effect that they are aware of the additional taxes imposed by the

provisions of section 44-5-39 in the event that they use land classified as farm, forest, or open

space land for another purpose.

      (c) Pursuant to the provisions of section 44-3-29.1, all wholesale and retail inventory

subject to taxation is assessed at its full and fair cash value, or at a uniform percentage of its

value, not to exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each

town and city. Once the fiscal year 1999 value of the inventory has been assessed, this value shall

not increase. The phase-out rate schedule established in section 44-3-29.1(d) applies to this fixed

value in each year of the phase-out.

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

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

44-5-12.1. Assessment of tangible personal property. – (a) All tangible personal

property subject to taxation shall be assessed for taxation based on the original purchase price

(new or used) including all costs such as freight and installation. Assets will be classified and

depreciated as defined in this section.

(b) The following classification and depreciation table shall be used in determining the

assessed value of tangible personal property.

State of Rhode Island Tangible Property Classification

Class I Class II Class III

Class of Assets Short Life 1-5 yrs Mid-Life 6-12 yrs Long Life 13+ yrs

Age Depreciation Rate

1 95 95 95

2 80 90 90

3 60 80 85

4 30 70 80

5 20 60 75

6 20 50 70

7 20 40 65

8 20 30 60

9 20 30 55

10 20 30 50

11 20 30 45

12 20 30 40

13 20 30 35

14 20 30 30

15+ 20 30 30

Assets Shall Not be Trended

(c) Assets shall be classified on an annual basis by the Rhode Island Association of

Assessing Officers' Personal Property Committee based on the following table:

INDUSTRY GROUP IN YEARS CLASS

Aerospace industry II

Agriculture machinery and equipment II

cotton ginning II

Aircraft and all helicopters II

Amusement and theme parks II

Apparel and fabricated textile manufacturing II

Automobile repair shops II

Bakeries and confectionery production II

Barber and beauty shops II

Billboards II

Brewery equipment II

Cable television, headend facilities II

microwave systems II

program origination II

service and test II

subscriber connection and distribution II

Canneries and frozen food production II

Cement manufacture III

Chemical and allied production II

Clay products manufacturing III

Clocks and watches, manufacturing II

electronic instrumentation I

Cold storage and ice-making equipment III

Cold storage warehouse equipment II

Computers, personal computers (PC) I

mainframe I/II

peripherals I

Condiments, manufacturing and processing II

Construction equipment, general construction II

Dairy products manufacturing II

Data handling equipment, except computers II

Distilling II

Electrical equipment manufacturing II

Electronic companies, steam production III

other production, combined cycle III

gas turbines III

nuclear production III

transmission III

distribution III

Electronic equipment manufacturing I

Fabricated metal products II

special tools I

Fishing equipment, excluding boats and barges I

Food and beverage production II

special handling devices I

Fur processing II

Gas distribution, total distribution equipment III

Optional – for equipment by category:

mains and services, plastic III

mains and services, steel III

meters, regulators, installations III

other distribution equipment III

Glass and glass products II

special tools I

Grain and grain mill products manufacture III

Gypsum products III

Hand tools I

Hospital furnishings and equipment II

Hotel and motel furnishings and equipment II

Jewelry products and pens II

Knitwear and knit products I

Laundry equipment II

Leather and leather products II

Logging, timber cutting I/II

Machinery manufacturing, except, as otherwise listed II

Marine construction II

Meatpacking II

Medical and dental supply production II

Metalworking machinery manufacturing II

Mining and quarrying II

Motion picture and television production II

Motor vehicle and parts manufacturing II

special tools I

Office furniture and equipment II

Optical lenses and instrument manufacturing II

Paints and varnishes I

Paper and pulp manufacturing II

converted paper, paperboard and pump II

Petroleum and natural gas, drilling, onshore II

drilling, offshore II

exploration and production II

petroleum refining III

pipeline transportation III

Plastics manufacturing I/II

Plastic products manufacturing II

special tools I

Primary metals production, nonferrous and foundry products III

special tools I

Primary steel mill products III

Printing and publishing II

Professional and scientific instruments II

Professional and scientific instruments II

Radio and television, broadcasting I/II

Railroad transportation equipment manufacturing II

locomotive manufacturing II

Recreation and amusement II

Retail trades, fixtures and equipment II

Residential furniture II

Restaurant and bar equipment II

Restaurant equipment, fast foods II

Rubber products manufacturing II

special tools I

Sawmills, permanent II

portable I

Service establishments II

Ship and boat building machinery and equipment II

special tools I

Soft drink manufacture and bottling II

Steam production and distribution III

Stone products manufacturing III

Sugar and sugar products manufacturing III

Telecommunications, local exchange

analog switching I/II

digital switching I/II

circuit, digital I/II

circuit, analog II

circuit, optic I/II

other central office equipment I/II

information/origination equipment I/II

smart phones I

metallic cable II

fiber cable III

poles III

conduit III

Telecommunications, interstate interexchange

analog switching I/II

digital switching I/II

metallic cable II

fiber cable III

poles III

conduit III

all other equipment I/II

Telecommunications, cellular

analog switching I/II

digital switching I/II

radio frequency channel and control I/II

power equipment II

antennae II

towers III

transmission equipment I/II

cellular phones I

Textile products, including finishing and dyeing II

manufacture of nonwoven fabrics II

manufacture of yarn, thread and woven fabrics II

manufacture of textured yarns II

Theater equipment II

Tobacco and tobacco products III

Vegetable oil products III

Waste reduction and resource recovery II

Water transportation III

vessels, barges and tugs III

Water utilities III

Wharves, docks and piers III

Wholesale trade fixtures and equipment II

Wood products and furniture manufacturing II

     SECTION 3. This act shall take effect upon passage.

=======

LC00084/SUB A

=======