law23328

Chapter 328

2023 -- S 0928 SUBSTITUTE A AS AMENDED
Enacted 06/24/2023

A N A C T

RELATING TO TAXATION -- STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION

Introduced By: Senators Murray, Ruggerio, Valverde, DiPalma, DiMario, Picard, Felag, Euer, Lauria, and Miller

Date Introduced: April 10, 2023

It is enacted by the General Assembly as follows:

SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

adding thereto the following chapter:

CHAPTER 5.3

STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION

44-5.3-1. Municipal tangible property tax exemption.

(a) Notwithstanding the provisions of chapter 5 of this title or any other provisions of law

to the contrary, in an effort to provide relief for businesses, including small businesses, and to

promote economic development, a city, town, or fire district shall provide each tangible property

taxpayer on the aggregate amount of all ratable, tangible personal property not otherwise exempt

from taxation an exemption from taxation of fifty thousand dollars ($50,000) applicable to the

assessment date of December 31, 2023, and for each assessment date thereafter. All ratable,

tangible, personal property valued above fifty thousand dollars ($50,000) remains subject to

taxation.

(b) Individual personal exemptions granted to tangible property taxpayers in any city, town,

or fire district at the time of the effective date of this chapter shall be applied to assessed values

prior to applying the statewide exemption provided in this section in order that any lost revenue to

be reimbursed pursuant to this chapter for each respective city, town, or fire district shall not include

revenue loss resulting from these individual personal exemptions.

city, town, or fire district at the time of the effective date of this chapter shall be disregarded in

order that any lost revenue to be reimbursed pursuant to this chapter for each respective city, town,

or fire district shall include revenue loss resulting from such pre-existing preexisting uniform

exemptions.

44-5.3-2. Reimbursement of lost tax revenue.

(a) Beginning in fiscal year 2025 and for each fiscal year thereafter, cities, towns, and fire

districts shall receive reimbursements, as set forth in this section, from state general revenues for

lost tax revenues due to the reduction of the tangible property tax resulting from the statewide

exemption set forth in § 44-5.3-1.

(b) Beginning in fiscal year 2025, and for each fiscal year thereafter, cities, towns, and fire

districts shall receive a reimbursement equal to the tangible property levy for the assessment date

of December 31, 2022, minus the tangible personal property levy for the assessment date of

December 31, 2023.

September 30, 2024, and every September 30 thereafter; provided, however, that reimbursement

shall not be provided to any city, town, or fire district in any year in which it has failed to provide

to the division of municipal finance its certified tax roll in accordance with § 44-5-22 or any other

information required by the division of municipal finance to calculate the reimbursement amount.

44-5.3-3. Tangible property tax rate cap.

(a) Notwithstanding any other provision of law to the contrary, the tax rate for the class of

property that includes tangible personal property for any city, town, or fire district shall be capped

and shall not exceed thereafter the tax rate in effect for the assessment date of December 31, 2022.

(b) Notwithstanding any other provision of law to the contrary, for assessment dates on and

after December 31, 2023, any city, town, or fire district shall be permitted to tax all other classes

of property, or where no classification has been enacted all other types of property, at a different

tax rate than the tax rate for tangible personal property required by subsection (a) of this section.

44-5.3-4. Removal of certain limitations and requirements.

For assessment dates on or after December 31, 2023, tangible tax rates shall be disregarded

for purposes of compliance with limitations on the extent to which the effective tax rate of one class

of property may exceed that of another, or requirements that the same percentage rate change be

applied across property classes from one year to the next, under § 44-5-11.8 or any other similar

statutory provision applicable to a city, town, or fire district.

44-5.3-5. Application.

The statewide exemption set forth in this chapter shall not apply to:

(1) Public service corporation tangible property subject to taxation pursuant to § 44-13-13;

and

(2) Renewable energy resources and associated equipment subject to taxation pursuant to

§ 44-5-3(c).

SECTION 2. Section 45-13-14 of the General Laws in Chapter 45-13 entitled "State Aid"

is hereby amended to read as follows:

45-13-14. Adjustments to tax levy, assessed value, and full value when computing state

aid.

(a) Whenever the director of revenue computes the relative wealth of municipalities for the

purpose of distributing state aid in accordance with title 16 and the provisions of § 45-13-12, he or

she the director shall base it on the full value of all property except:

(1) That exempted from taxation by acts of the general assembly and reimbursed under §

45-13-5.1, which shall have its value calculated as if the payment in lieu of tax revenues received

pursuant to § 45-13-5.1, has resulted from a tax levy;

(2) That whose tax levy or assessed value is based on a tax treaty agreement authorized by

a special public law or by reason of agreements between a municipality and the economic

development corporation in accordance with § 42-64-20 prior to May 15, 2005, which shall not

have its value included;

(3) That whose tax levy or assessed value is based on tax treaty agreements or tax

stabilization agreements in force prior to May 15, 2005, which shall not have its value included;

(4) That which is subject to a payment in lieu of tax agreement in force prior to May 15,

2005;

(5) Any other property exempt from taxation under state law;

(6) Any property subject to chapter 27 of title 44, taxation of Farm, Forest, and Open Space

Land; or

(7) Any property exempt from taxation, in whole or in part, under the provisions of

subsections (a)(51), (a)(66), or (c) of § 44-3-3, § 44-3-47, § 44-3-65, § 44-5.3-1, or any other

provision of law that enables a city, town, or fire district to establish a tangible personal property

exemption, which shall have its value calculated as the full value of the property minus the

exemption amount.

(b) The tax levy of each municipality and fire district shall be adjusted for any real estate

and personal property exempt from taxation by act of the general assembly by the amount of

payment in lieu of property tax revenue anticipated to be received pursuant to § 45-13-5.1 relating

to property tax from certain exempt private and state properties, and for any property subject to any

payment in lieu of tax agreements, any tax treaty agreements or tax stabilization agreements in

force after May 15, 2005, by the amount of the payment in lieu of taxes pursuant to such

agreements.

attributable to that city or town.

(d) The changes as required by subsections (a) through (c) of this section shall be

incorporated into the computation of entitlements effective for distribution in fiscal year 2007-2008

and thereafter.

SECTION 3. This act shall take effect upon passage.

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LC002716/SUB A

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