Chapter
206
2008 -- S 2430 SUBSTITUTE A AS AMENDED
Enacted 07/01/08
A N A C T
RELATING TO TOWNS AND
CITIES - AMENDING THE TAX INCREMENT FINANCING ACT
Introduced By: Senators DaPonte, and Moura
Date Introduced: February 12, 2008
It is
enacted by the General Assembly as follows:
SECTION
1. Chapter 45-33.2 of the General Laws entitled "TAX INCREMENT
FINANCING"
is hereby amended by adding thereto the following section:
45-33.2-21.
Tax Limitations. – (a) Except as provided below, a tax increment
shall be
included
in the calculation of the maximum tax a city or town may levy pursuant to the
provisions
of
section 44-5-2 of the general laws.
(b)
To the extent that inclusion of a tax increment in a tax levy causes a municipality
to
exceed
the maximum tax a city or town may levy pursuant to the provisions of section
44-5-2 of
the
general laws, such excess shall be excluded from such calculation for a period
not to exceed
twenty-five
(25) years if:
(i)
such excess tax increment is allocable to (A) the payment of the principal of
or interest
on
any special obligation bonds issued under the provisions of section 45-33.2-6,
to fund a project
as
described in subdivisions 45-33.2-3(2)(i), (ii) or (iii); (B) any requirement
to fund any reserve
or
other account or satisfy any other financial requirement which must be
satisfied in connection
with
the issuance of such bonds or any other indebtedness or obligation incurred in
connection
with any
such project or portion of one; or (C) any payments made to directly fund any
project
described
in subdivisions 45-33.2-3(2)(i), (ii) or (iii); and
(ii)
the project is determined by the division of property valuation in the
department of
revenue
to be (A) within or contiguous to the tax increment area, or (B) substantially
related to
the
improvements giving rise to the tax increment; or (C) reasonably necessary to
assure the
private
investment required to generate the tax increment.
(c)
The tax assessor in each city and town shall include calculations reflecting
any tax
increment
excluded from the tax cap provisions of section 44-5-2 of the general laws when
submitting
the municipality’s adopted tax levy and rate to the division of property
valuation in
accordance
with section 44-5-2 of the general laws.
(d)
The division of property valuation in the department of revenue may issue such
regulations
as may be required to implement and enforce the provisions of this section.
SECTION
2. This act shall take effect upon passage.
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LC01713/SUB A/2
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