Chapter 187
2023 -- H 6167
Enacted 06/23/2023

A N   A C T
RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

Introduced By: Representatives Speakman, and Donovan

Date Introduced: March 17, 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 Bristol 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. Further, the Bristol 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.
     SECTION 2. This act shall take effect upon passage.
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