| Chapter 035 |
| 2023 -- S 0303 Enacted 05/24/2023 |
| A N A C T |
| RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES |
Introduced By: Senator Alana DiMario |
| Date Introduced: February 16, 2023 |
| 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 subsections (a)(2) and (a)(3) of this 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 and the city of Providence. |
| (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 that tax classification plan for any tax year thereafter, notwithstanding the |
| provisions of subsection (a) of this section. |
| (i) 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, 2022. |
| (j) Notwithstanding the provisions of subsection (a) of this section, the town council of the |
| town of New Shoreham 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, 2023. |
| SECTION 2. This act shall take effect upon passage. |
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| LC001197 |
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