law24115

Chapter 115

2024 -- S 2857 AS AMENDED
Enacted 06/15/2024

A N A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

Introduced By: Senators Bissaillon, Zurier, and Ruggerio

Date Introduced: March 22, 2024

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of this section, are governed by § 44-34.1-1 [repealed].

(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.; provided, however, that the owner-occupied rate 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.

(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.

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.

(k) 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.

(1) The city council of the city of Providence 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; that the tax rate for Class 3 shall not be

more than three (3) times the tax rate of Class 1; and that the tax rate for Class 2 shall not be more

than three and one-half (3½) times the effective owner-occupied tax rate of Class 1, whether by

homestead exemption or separate rates.

SECTION 2. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local

Taxes" is hereby amended by adding thereto the following section:

44-5-11.18. Tax classification -- Providence.

Notwithstanding any provision of § 44-5-11.8 to the contrary, the city of Providence may

adopt a tax classification with unrestricted tax rates by ordinance as follows:

(1) Classes of property.

(i)(A) Class 1A: Residential real estate consisting of fewer than six (6) dwelling units; land

classified as open space; and dwellings on leased land including mobile homes.

(B) Class 1B: Residential real estate consisting of six (6) to ten (10) dwelling units.

(ii) Class 2: Commercial and industrial real estate.

(iii) Class 3: Properties containing partial residential and commercial or business uses. The

city is authorized to adopt a tax rate for this class or to apply the appropriate residential tax rate to

the residential portion of the property and the commercial rate to the commercial portion of the

property. The city may apportion property by square footage, by number of units, or by any other

reasonable and consistent manner.

(iv) Class 4: All ratable, tangible personal property.

(2) A homestead exemption is also authorized within Class 1A. In lieu of a homestead

exemption, the city of Providence may divide Class 1A into non-owner and owner-occupied

property and adopt separate tax rates.

(3) In any tax year after the first in which the city of Providence adopts such a tax

classification, the city council of the city of Providence may by ordinance change the number of

dwelling-units to be included in Class 1A, Class 1B, and Class 1C.

(4) The tax rate for Class 2 shall not be more than two (2) times the base tax rate of Class

1A; and the tax rate for Class 2 shall not be more than three and one-half (3½) times the effective

owner-occupied tax rate of Class 1, whether by homestead exemption or separate rates. There shall

be no further differential tax rate limits for a tax classification adopted pursuant to this section.

SECTION 3. This act shall take effect upon passage.

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LC005712

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