Introduced By: Senators Irons and Goodwin
Date Introduced : June 9, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 44-3-9 of the General Laws in Chapter 44-3 entitled "Property Subject to Taxation" is hereby amended to read as follows:
44-3-9. Exemption or stabilizing of taxes on property used
for manufacturing, commercial, or residential purposes. --
(a) (1) Except as hereinafter provided, the electors of any town
qualified to vote on a proposition to appropriate money or impose
a tax when legally assembled, may vote to authorize the town council
of the town, for a period not exceeding {DEL ten (10) years DEL}
{ADD twenty (20) years ADD}, and subject to the conditions as hereinafter
provided, to exempt from payment, in whole or in part, real and
personal property used for manufacturing, commercial, or residential
purposes, or to determine a stabilized amount of taxes to be paid
on account of the property, notwithstanding the valuation of the
property or the rate of tax; provided, however, that after public
hearings, at least ten (10) days' notice of which shall be given
in a newspaper having a general circulation in the town, the town
council determines that:
(i) Granting of the exemption or stabilization will inure to the benefit of the town by reason of (A) the willingness of the manufacturing or commercial concern to locate in the town, or of individuals to reside in such an area, or (B) the willingness of a manufacturing firm to expand facilities with an increase in employment or the willingness of a commercial or manufacturing concern to retain or expand its facility in the town and not reduce substantially its work force in the town; or (C) an improvement of the physical plant of the town which will result in a long-term economic benefit to the town and state; or
(ii) Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial or residential firm or property owner to {ADD construct new or to ADD} replace, reconstruct, convert, expand, retain or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase or maintenance in plant, residential housing or commercial building investment by the firm or property owned in the town;
(2) Provided further, however, that should the town council make the determination in subdivision (a)(1)(i)(B), any exemption or stabilization may be granted as to new buildings, fixtures, machinery, or equipment for new buildings, firms or expansions, and may be granted as to existing buildings, fixtures, machinery and equipment for existing employers in the town.
(b) Cities shall have the same authority as is granted to towns except that authority granted to the qualified electors of a town and to town councils shall be exercised in the case of a city by the city council.
(c) For purposes of this section, "property used for commercial purposes" means any building or structures used essentially for offices or commercial enterprises.
(d) Except as hereinafter provided, property, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the city or town in which the property is located so long as the property is used for the manufacturing or commercial, or residential purposes for which the exemption or stabilized amount of taxes was made.
(e) Notwithstanding any vote of the qualified electors of a town and findings of a town council or of any vote and findings by a city council, the property shall be assessed for and shall pay that portion of the tax if any assessed by the city or town in which the real or personal property is located, for the purpose of paying the indebtedness of the city or town and the indebtedness of the state or any political subdivision thereof to the extent assessed upon or apportioned to the city or town, and the interest thereon, and for appropriation to any sinking fund of the city or town, which portion of the tax shall be paid in full, and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose.
(f) Nothing in this section shall be deemed to permit the exemption or stabilization herein provided for any manufacturing or commercial concern relocating from one city or town within the state of Rhode Island to another.
SECTION 2. This act shall take effect upon passage.
