Chapter 535

2006 -- S 2338

Enacted 07/10/06

A N A C T

RELATING TO LEVY AND ASSESSMENT OF LOCAL TAXES

Introduced By: Senators Sosnowski, Breene, Polisena, Gibbs, and Blais

Date Introduced: February 07, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-5-42 of the General Laws in Chapter 44-5 entitled "Levy and

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

44-5-42. Exemption of certain farm property. -- (a) All farm machinery, including

motor vehicles with farm registration plates, is exempt from taxation; provided, that any town or

city is entitled to reimbursement by the state in an amount equal to the amount levied on the value

of the farm machinery in excess of the value of ten thousand dollars ($10,000.00) based upon

assessments on December 31, 1982.

      (b) Livestock and poultry which are actually and exclusively used in farming, when

owned and kept in this state by any farmer or group of farmers operating as a unit, a partnership,

or a corporation, a majority of the stock of which corporation is held by members of a family

actively engaged in farm operations, are exempt from local property taxation; provided, that the

principal means of livelihood of each farmer whether operating individually or as one of a group,

partnership or corporation is derived from the farming operation. Only one exemption is allowed

to each farmer, group of farmers, partnership, or corporation.

      (c) Richmond. - All real property including all real estate, buildings and improvements

on the property which is not used for a personal residence and is actually and exclusively used in

farming by a qualified farmer may be exempted from taxation by the town of Richmond. For

purposes of this section, a "qualified farmer" is an individual, partnership or corporation who

operates a farm and has filed a 1040F U.S. Internal Revenue form or similar document with the

Internal Revenue Service, has a state of Rhode Island farm tax number, and has earned at least ten

thousand dollars ($10,000) gross income on farm products in each of the preceding three (3)

years, property defined as either farm, forest or open space land, pursuant to chapter 27 of this

title. Any sale of exempted land, or portion of the land, incurs at the time of sale a penalty of

twice the total amount of taxes exempted. The assessed penalty is due and payable to the town of

Richmond, which would grant the exemption at the time of sale of the property. A sale of land to

another qualified farmer or use according to this section is exempted from the penalty.

      (d) Any taxpayer or owner which allows its real property to be used by a qualified owner

in a manner consistent with use defined in subsection (c) may be eligible for the exemption

established by this section for the duration of use by a qualified farmer. The tax assessor may

prorate the exemption according to actual use. The tax assessor may require evidence of actual

use, including, but not limited to, a lease, to substantiate the exemption.

      (e) Cities and towns may tax farm buildings at a rate that reflects the actual costs

incurred by the city or town in services to those buildings.

(f) All greenhouses constructed after January 1, 2006, or altered or repaired after January

1, 2006, where the cost of the alterations or repairs is equal to or greater than fifty percent (50%)

of the physical value of the greenhouse, are exempt from taxation, provided that the greenhouse is

used solely as an agriculture growing structure and provided further that the owner of the

greenhouse operates a farm, has filed a 1040F, and has a current, valid Level II certificate of

exemption as provided for in section 44-18-30.

     SECTION 2. This act shall take effect upon passage.

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LC01606

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