Chapter 369
2013 -- S 0828
Enacted 07/15/13
A N A C T
RELATING TO
"AN ACT RELATING TO TAX EXEMPTION OF CERTAIN PROPERTY IN THE TOWN OF
Introduced By: Senator Catherine Cool Rumsey
Date Introduced: April 04, 2013
It is enacted by the General
Assembly as follows:
SECTION 1. Section 1 of Chapter 112 of the Public Laws of
2005, January session,
entitled "An Act Relating to Tax Exemption of Certain
Property in the Town of
hereby amended to read as follows:
Section
1. (A) In order to encourage, maintain, and preserve a sustainable
supply of
owner-occupied housing that is affordable to low and moderate income
older people and totally
disabled people, the town council of
citizen and resident of the town, and who is sixty-five (65)
or more years of age, or is less than
sixty-five (65) years of age and totally disabled, and is
residing in the town in a dwelling house or
mobile home that has been owned by him or her for one year
before the date of the assessment
has been a resident of
(3) years before the year for which the exemption is claimed, on proper claim
being made
therefor, a tax exemption proportionate to total gross
household income.
(B) An ordinance enacted
pursuant to this act shall provide a schedule of tax exemptions
of sixty percent (60%) or less, for total gross
household incomes of $9,346 or more. The town
council shall have the authority to adjust the schedule
annually, by amendment to said ordinance,
to accommodate changing economic conditions, including,
but not limited to, changes in the
national cost of living index.
(C) The word
"income" as used herein means the aggregate income of the property
owner
and all persons living with him or her in the household,
from whatever source derived, including,
but not limited to, realized capital gains, gifts, and,
in their entirety, pensions, annuities,
retirement benefits, and social security benefits. Income shall
be based on the calendar year
preceding the year for which the exemption is claimed total funds received from any source by
the property owner and all other persons living in the
household during the calendar year
preceding the year for which the exemption is claimed. The
funds may be taxable or nontaxable
and may be from any source, including, but not limited
to, wages, salary, and tips; business
income; farm income; dividends, interest, and realized
capital gains; pensions, annuities, and
retirement benefits; social security benefits; disability
benefits; unemployment benefits,
temporary disability insurance benefits or workers'
compensation benefits; estate or trust income;
cash public assistance payments; alimony and child
support; monetary gifts; and military income
and cash benefits.
(D) The word
"resident" as used herein means a person whose legal domicile is in
intends to return. A person can have more than one residence
but only one legal domicile. A
temporary or seasonal residence is not a legal domicile.
(E) The words
"totally disabled" as used herein mean a person has been determined
by
the social security administration to be one hundred
percent (100%) disabled and is eligible for
disability benefits under the federal social security act.
(D)(F) The
ordinance shall provide that the exemption shall be available only to owner-
occupants. Only one exemption shall be granted for each
residential property, even if more than
one eligible person is an owner who resides there.
(E)(G) The
ordinance shall provide that the exemption is available annually, upon timely
application, to persons who have reached their sixth-fifth (65th)
birthday by December 31 of the
calendar year preceding the year for which the exemption is
claimed or to persons who are totally
disabled, and that the tax assessor shall be authorized to require
whatever documentation he or
she deems reasonably necessary to verify eligibility.
Applications shall be made on or before
April 15 of each year for which the
exemption is claimed.
(F)(H) The
ordinance shall provide that no income-bearing property, business property,
or combination business and residential property shall
be entitled to the exemption; provided,
however, that the owner of a two-household dwelling who is
otherwise entitled to an exemption
shall receive an exemption in proportion to the area
occupied by the owner, and the rental income
from the second dwelling unit shall not be considered
income for eligibility purposes. The
exemption shall apply to any owner-occupied dwelling unit,
including, but not limited to, single-
family houses, condominium apartments and cooperative
apartments. If the dwelling unit
occupies only part of a building, the exemption shall be in
proportion to the area devoted to the
owner's dwelling unit.
Professional persons who conduct their profession from their residence
shall not be entitled to an exemption.
(G)(I) The ordinance shall provide that property shall not be
eligible for a tax exemption
if it has been conveyed to the applicant solely for the
purpose of evading taxation. If a property
owner is determined to have received a tax exemption
through fraudulent transfer of the property
or through false or misleading statements on a tax
exemption application form, the assessor shall
have the authority to record a lien on the property in the
land evidence records for the amount of
tax that should have been paid to the town.
(J) The ordinance
shall provide that each exemption shall become effective upon the tax
assessor's certification of the tax roll for the tax year for
which the exemption is claimed, and
shall apply to the tax for that year. If the property owner
becomes ineligible for the exemption
after certification of the tax roll and before the taxes
for the year are paid in full, the tax assessor
shall have the authority to adjust the amount of the tax
due on the property and issue a prorated
bill.
(H)(K)
Nothing contained herein or in an ordinance enacted pursuant to the authority
herein shall abrogate the authority conferred on the tax
assessor by
section 44-3-3(16).
SECTION
2. The question of acceptance or rejection of this act shall be
submitted to the
qualified electors of
expend money, at any annual or special financial town
meeting during 2013. Said vote shall be
taken by standing vote or by paper ballot. Acceptance of
this act shall be by majority vote. Any
action taken in the year 2013 at an annual or special
financial town meeting shall be as valid as if
this act were in effect at the time the warrant for said
town meeting was published and at the time
said annual or special financial town meeting took place,
and any ordinance enacted pursuant to
this act shall apply to any application for exemption
filed during 2013. After said financial town
meeting, the town clerk shall forthwith certify to the
secretary of state the result of the vote.
SECTION
3. This section and Section 2 of this act shall take effect upon
passage, and the
remaining section shall take effect upon approval by the
qualified electors of
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LC02315
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