Chapter 080
2013 -- S 0826 SUBSTITUTE A
Enacted 06/12/13
A N A C T
RELATING TO
TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES
Introduced By: Senators Miller, Goodwin, Ruggerio, Goldin, and Jabour
Date Introduced: April 04, 2013
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 § 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 excluding class 4 shall not exceed by
fifty percent (50%) the rate applicable to any other class,
except in the city of
the town of
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, excluding
class 4, except in the city of
(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 § 44-3-29.1.
(5) The tax rates
applicable to motor vehicles within Class 4 as defined in subsection (b)
of this section are governed by § 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
business uses and residential real estate of more than five
(5) dwelling units.
(i)
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 the town of
(ii) In lieu of a
homestead exemption, any city or town may divide this class into non-
owner and owner occupied property, and adopt separate tax
rates in compliance with the within
tax rate restrictions.
(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
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.
(c) The city council of
the city of
Glocester may by ordinance provide for and adopt a tax rate on
various classes as it shall deem
appropriate. Provided, that the tax rate for Class 2 shall not
be more than two (2) 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%). Providence
and Glocester shall be able to establish
homestead
exemptions up to fifty percent (50%) of value. The and
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
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.
(e) Notwithstanding the
provisions of subsection (a) of this section, the town council of
the town of
accordance with the provisions of subsections (a) and (b) of
this section and the provisions of §
44-5-79, to be applicable to taxes assessed on or
after the assessment date of December 31, 2004.
SECTION 2. This act shall take effect upon passage.
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LC02159/SUB A
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