2002 -- S 2046

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LC00361

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2002

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A N A C T

RELATING TO AIRPORTS AND LANDING FIELDS -- TAXATION -- WARWICK

STATION

     Introduced By: Senators Revens, McCaffrey, Lenihan, and Donelan

     Date Introduced: January 08, 2002

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. The general assembly finds that the state airport provides substantial

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benefits to the people of the state beyond the city of Warwick as well as within the city of

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Warwick, but that the T.F. Green state airport imposes a significant burden on the city of

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Warwick not borne by the inhabitants of the state beyond the city of Warwick. Furthermore,

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federal law prohibits the airport operator from paying taxes or making payments in lieu of taxes at

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a rate adequate to compensate the city and its inhabitants for that burden. The general assembly

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therefore finds it fair and appropriate to make appropriations to the city of Warwick from

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increased revenues to be received due to sales taxes and rental car surcharges collected in

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connection with the Warwick station project.

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     SECTION 2. Section 1-2-17 of the General Laws in Chapter 2 entitled "Airports and

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Landing Fields" is hereby amended to read as follows:

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     1-2-17. Payment for compensation for municipal services to the city of Warwick. --

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The Rhode Island airport corporation, from a parking surcharge at the T.F. Green state airport as

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defined by a 1988 agreement between the state acting by and through the director of

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transportation and the city of Warwick, shall pay to the city of Warwick out of the parking

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revenue received at T.F. Green state airport as compensation for municipal services provided at

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T.F. Green state airport, a sum of not less than two hundred seventy-five thousand dollars

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($275,000) for fiscal year 1994 payable quarterly; for each fiscal year after 1994, this sum may be

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reviewed and/or renegotiated by the mayor of the city of Warwick and the airport corporation, but

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in no event will the sum be less than five hundred thousand dollars ($500,000) seven hundred

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fifty thousand dollars ($750,000) in any fiscal year, provided any payments provided or any

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portion of these payments is not disapproved by the F.A.A. Beginning in fiscal year 1995, in In

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the event that the F.A.A. disapproves this payment from the airport corporation, the state shall

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pay to the city of Warwick the sums of money required to insure that the city of Warwick

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receives two hundred and seventy five thousand dollars ($275,000) seven hundred fifty thousand

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dollars ($750,000).

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     SECTION 3. Chapter 1-2 of the General Laws entitled "Airports and Landing Fields" is

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hereby amended by adding thereto the following sections:

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     1-2-1.1. Powers relating to vehicular traffic accessing airport facilities T.F. Green

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state airport. – The Rhode Island airport corporation is authorized: (1) to impose charges on

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customers of rental companies (as defined in section 31-34.1-1) who directly or indirectly use

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Warwick station or the T.F. Green state airport, at such rates as the Rhode Island airport

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corporation may deem necessary to provide adequate revenue to pay all costs of constructing,

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reconstructing, expanding, reconfiguring, operating, and maintaining Warwick station regardless

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of whether such charges may have an anticompetitive effect; and (2) to regulate the access of

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vehicular traffic to airport properties including by excluding one (1) or more classes of vehicular

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traffic from accessing portions of airport roadways, parking lots, curbsides and other vehicular

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facilities.

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     1-2-17.1. Sales taxes and surcharges on customer facility charges. – (a) Moneys due

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and payable as sales taxes and rental vehicle surcharges on customer facility charges shall be

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deposited in a restricted receipt account entitled “receipts of sales taxes and surcharges on

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customer facility charges.” The Rhode Island airport corporation shall provide to the Rhode

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Island department of administration information related to the amount of customer facility

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charges remitted on or before June 30 of each year.

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     (b) The amounts on deposit in the account for receipts of sales taxes and surcharges on

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customer facility charges shall be transferred to the city of Warwick as general revenues.

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     (c) “Customer facility charge” means the customer facility charge collected by rental

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companies (as defined in section 31-34.1-1) pursuant to regulations promulgated by the Rhode

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Island airport corporation.

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     SECTION 4. Section 44-4-4.1 of the General Laws in Chapter 4 entitled "Situs and

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Ownership of Taxable Property" is hereby amended to read as follows:

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     44-4-4.1. State property taxed to lessee or tenant. – (a) Any property owned by the

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state, except land and piers but including any other real property, buildings, improvements, and

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tangible personal property attached to, contained in, or used in connection with the property,

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which is leased or rented subleased for a term of ten (10) or more years, including any options to

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renew or extend the term, shall be taxed to the person, partnership, corporation, joint stock

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company, or association leasing or renting subleasing the property, who, for the purposes of

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taxation is deemed the owner of the property; but excluding:

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      (1) Property acquired by the state from the United States pursuant to 50 U.S.C. App.

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section 1622(g) and managed for it by the Rhode Island port authority and economic development

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corporation;

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      (2) State property which is leased by any corporation, association, or organization which

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is exempt from property taxation, but the corporation, association or organization may in

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appropriate cases agree to make payments in lieu of taxes;

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      (3) State property which is leased for purposes of nonprofit public use or service;

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      (4) Portions of buildings which are owned by the state, the portions being of a size,

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shape, or other unique character which makes them impossible to measure or separate for

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purposes of taxation; and

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      (5) State Subject to subsection (b) of this section, state property leased for purposes

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which are necessary to the operation of an airport.

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     (b) If a tenant or subtenant of state property under a lease or sublease with a term of ten

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(10) years or more including any options to renew or extend the term, makes or made any

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improvements to the property, the improvements shall be taxable to the tenant or subtenant as the

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case may be regardless of whether the improvements immediately upon accession or

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subsequently shall become state property, unless the improvements or the tenant or subtenant are

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otherwise exempt from taxation.

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     (c) Any agreement to make payment in lieu of taxes shall not be subject to chapters 5

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through 9 of this title unless the agreement expressly so provides. Taxes authorized on state

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property under subsection (a) or (b) of this section shall not be enforced by any distress, lien, sale

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or other execution on such property, but the tax may be enforced against other property of the

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tenant or subtenant as provided in chapters 5 through 9 of this title or, if so provided by the lease

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or sublease agreement, may be enforced against the tenant’s interest in such property.

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     SECTION 5. Sections 1, 2 and 3 of this act shall take effect July 1, 2002. Section 4 shall

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apply to dates of assessment occurring on or after December 31, 2000.

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LC00361

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO AIRPORTS AND LANDING FIELDS -- TAXATION -- WARWICK STATION

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     This act would increase minimum compensation to the city of Warwick to seven hundred

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fifty thousand dollars ($750,000) as collected from parking revenues at T.F. Green State Airport.

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This act would also authorize the Rhode Island Airport Corporation to impose charges on

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customers of rental companies to provide revenue for the construction of Warwick Station. This

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act would also provide that improvements made by a tenant of state property leased for purposes

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necessary to the operation of an airport would be taxable to the tenant.

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     Sections 1, 2 and 3 of this act would take effect on July 1, 2002. Section 4 of this act

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would apply to dates of assessment occurring on or after December 31, 2000.

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LC00361

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