| Chapter 220 |
| 2016 -- S 2268 SUBSTITUTE A AS AMENDED Enacted 07/01/2016 |
| A N A C T |
| RELATING TO TAXATION - PORTSMOUTH COMMERCIAL FINES |
| Introduced By: Senators DiPalma, and Felag |
| Date Introduced: February 09, 2016 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is |
| hereby amended by adding thereto the following section: |
| 44-3-9.916.3. Portsmouth - Exemption or stabilizing of taxes on certain qualified |
| commercial property. – Portsmouth - Exemption or stabilizing of taxes on qualified |
| property used for manufacturing or commercial purposes in the town of Portsmouth. – The |
| Portsmouth town council may authorize real and tangible property taxes to be exempted or |
| stabilized for legally permitted commercial or industrial businesses that construct a new facility, |
| renovate or expand an existing facility, or add leasehold improvements. Nothing in this section |
| shall be deemed to permit the exemption or stabilization for any manufacturing or commercial |
| concern locating from one city or town within the state to another. |
| (a) Notwithstanding any provisions of §44-3-9 to the contrary, except as provided in this |
| section, the town council of the town of Portsmouth may vote to authorize, for a period not |
| exceeding ten (10) years, and subject to the conditions provided in this section, to exempt from |
| payment, in whole or part, real and personal property used for manufacturing or commercial |
| purposes, or to determine a stabilized amount of taxes to be paid on account of the property, |
| notwithstanding the valuation of the property or the rate of tax; provided, that after public |
| hearings, at least ten (10) days' notice of which shall be given in a newspaper of general |
| circulation in the town, the town council determines that: |
| (1) Granting of the exemption or stabilization of taxes will inure to the benefit of the |
| town by reason of: |
| (i) The willingness of the manufacturing or commercial concern to locate in the town; or |
| (ii) The willingness of a manufacturing firm to expand facilities with an increase in |
| employment or the willingness of a commercial or manufacturing concern to retain or expand its |
| facility in the town and not reduce its work force in the town; or |
| (iii) An improvement of the physical plant of the town that will result in long-term |
| economic benefits to the town and the state. |
| (2) Granting of the exemption or stabilization of taxes will inure to the benefit of the |
| town by reason of the willingness of a manufacturing or commercial firm or concern to replace, |
| reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment |
| with modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase in |
| plant or commercial building investments by the firm or concern in the town. |
| (b) Should the town council make the determination in subsections (a)(1)(i) through |
| (a)(1)(iii), or subsection (a)(2), an exemption or stabilization may be granted for existing |
| buildings, property, machinery, or facilities owned by businesses already located in the town of |
| Portsmouth on January 1, 2016. |
| (c) For the purposes of this section, "real property used for manufacturing or commercial |
| purposes" means and includes any building or structure used for offices or commercial enterprises |
| including, without limitation, any building or structure used for wholesale, warehouse, |
| distribution, and/or storage business, used for service industries, or used for any other commercial |
| business, and not the land on which the building or structure is situated, and not used for |
| residential purposes. |
| (d) For purposes of this section, "personal property used for manufacturing or |
| commercial purposes" means any personal property owned by a firm or concern occupying a |
| building, structure, and/or land used for commercial purposes and used by such firm or concern in |
| its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, |
| stock in trade, and inventory. |
| (e) Except as provided in this section, property for which taxes have been exempted in |
| whole or in part, or stabilized pursuant to this section, shall not, during the period for which taxes |
| have been exempted or stabilized, be further liable to taxation by the town so long as the property |
| is used for the manufacturing or commercial purposes for which the exemption or stabilization |
| was granted. |
| (f) Notwithstanding any vote of, or findings by, the town council, the property shall be |
| assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of |
| paying the indebtedness of the town and the indebtedness of the state or any political subdivision |
| of the state, to the appropriation to any sinking fund of the town, which portion of the tax shall be |
| paid in full, and the taxes so assessed and collected shall be kept in a separate account and used |
| only for that purpose. |
| (g) Any application for tax exemption or stabilization submitted pursuant to this section |
| shall be submitted before an application for development plan review is submitted to the |
| Portsmouth planning board, as applicable, or for other such permits and/or approvals that may be |
| required from any other town board or commission. |
| (h) Any tax exemption or stabilization granted by the town council pursuant to this |
| section shall be applicable for a period beginning on the first day of the fiscal year in which the |
| exemption or stabilization is granted. |
| (i) If a property owner whose property tax has been exempted or stabilized pursuant to |
| this section becomes delinquent in the payment of its property taxes, or transfers ownership of its |
| business, the town council shall have the authority to review and terminate the tax exemption or |
| stabilization agreement. |
| (j) Nothing in this section shall be deemed to permit the exemption or stabilization |
| provided in this section for any manufacturing or commercial concern relocating from one city or |
| town within the state of Rhode Island to the town of Portsmouth. |
| SECTION 2. This act shall take effect upon passage. |
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| LC004351/SUB A/2 |
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