Chapter 021 |
2019 -- H 5993 AS AMENDED Enacted 06/07/2019 |
A N A C T |
RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES |
Introduced By: Representative Justine A. Caldwell |
Date Introduced: April 11, 2019 |
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 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 Providence and the |
town of Glocester and the town of East Greenwich; however, in the year following a revaluation |
or statistical revaluation or 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 |
Providence and the town of Glocester and the town of East Greenwich. |
(4) Notwithstanding subdivisions (2) and (3) subsections (a)(2) and (a)(3) of this |
subsection section, 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 |
apply to the reporting of, and compliance with, these classification restrictions. |
(b) Classes of Property. |
(1) 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 |
Providence, this class may also include residential properties containing partial commercial or |
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 town of Glocester. |
(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 Providence, properties containing partial commercial or business uses and |
residential real 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 Providence and the town council of the town of |
Glocester and the town council of the town of East Greenwich may, by ordinance, provide for, |
and adopt, a tax rate on various classes as they 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; and the tax rate applicable |
to Class 3 shall not exceed the tax rate of Class 1 by more than two hundred percent (200%). |
Glocester shall be able to establish homestead exemptions up to fifty percent (50%) of value and |
the calculation provided in subsection (b)(1)(i) shall not be used in setting the differential tax |
rates. |
(d) Notwithstanding the provisions of subsection (a) of this section, the town council of |
the town of Middletown may hereafter, by ordinance, adopt a tax classification plan in |
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 Little Compton may hereafter, by ordinance, adopt a tax classification plan in |
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. |
(f) Notwithstanding the provisions of subsection (a) of this section, the town council of |
the town of Scituate may hereafter, by ordinance, change its tax assessment from fifty percent |
(50%) of value to one hundred percent (100%) of value on residential and |
commercial/industrial/mixed-use property, while tangible property is assessed at one hundred |
percent (100%) of cost, less depreciation; provided, however, the tax rate for Class 3 (tangible) |
property shall not exceed the tax rate for Class 1 (residential) property by more than two hundred |
thirteen percent (213%). This provision shall apply whether or not the fiscal year is also a |
revaluation year. |
(g) Notwithstanding the provisions of subsections (a) and (b) of this section, the town |
council of the town of Coventry may hereafter, by ordinance, adopt a tax classification plan |
providing that Class 1, as set forth in subsection (b) "Classes of Property" of this section, may |
also include residential properties containing commercial or business uses, such ordinance to be |
applicable to taxes assessed on or after the assessment date of December 31, 2014. |
(h) Notwithstanding the provisions of subsection (a) of this section, the town council of |
the town of East Greenwich may hereafter, by ordinance, adopt a tax classification plan in |
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, 2018. Further, the East Greenwich town |
council may adopt, repeal, or modify said that tax classification plan for any tax year thereafter, |
notwithstanding the provisions of subsection (a) of this section. |
SECTION 2. Section 44-3-65 of the General Laws in Chapter 44-3 entitled "Property |
Subject to Taxation" is hereby amended to read as follows: |
44-3-65. Narragansett -- Tangible business property tax exemption. Narragansett |
and East Greenwich -- Tangible business property tax exemption. |
The town of Narragansett and the town of East Greenwich may, by ordinance, create a |
tangible business property tax exemption for local small business owners in an amount not to |
exceed thirty-five thousand dollars ($35,000). |
SECTION 3. This act shall take effect upon passage. |
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LC002423 |
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