2012 -- H 7568

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LC01355

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TAXATION -- PROPERTY TAX AND DISCLOSURE -- MUNICIPAL

BUDGETS

     Introduced By: Representatives Marcello, O`Grady, Hearn, Ruggiero, and Nunes

     Date Introduced: February 15, 2012

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-35-6 of the General Laws in Chapter 44-35 entitled "Property

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Tax and Fiscal Disclosure - Municipal Budgets" is hereby amended to read as follows:

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     44-35-6. Publication of property tax rates. -- At least ten (10) calendar days prior to

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the hearing for the purpose of adopting the town or city budget, the chief elected official in each

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town or city shall cause to be published a notice indicating the town's or city's intent to consider

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adopting a property tax levy for both residential and commercial property. This notice shall be

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published in a newspaper of general circulation in the town or city and the official municipal web

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site, if available. However, this notice may not be placed in that portion of the newspaper where

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legal notices and classified advertisements appear. This notice shall constitute notice of public

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hearing which may coincide with the hearing on the proposed budget and shall be by and in the

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following form:

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     (CITY, TOWN) of (NAME)

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NOTICE OF PROPOSED PROPERTY TAX

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RATE CHANGE

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The (City, Town) proposes to increase (decrease) its property tax levy to ________ in the

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________ budget year; the property tax levy this year is __________, THIS IS A

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PROPOSED INCREASE (DECREASE) OF ______%.

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It has been estimated that the proposed increase (decrease) in property tax revenues will

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result in a property tax rate of $________ (proposed property tax rate) per $1,000 assessed

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valuation, as compared to the current property tax rate of $______ per $1,000 assessed valuation.

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The following calculation shall be for both residential and commercial property:

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     A property tax rate of $ _____ (proposed property tax rate) per $1,000 assessed valuation applied

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to a property with a value of $ _____ (median assessed value in City, Town) would result in a

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property tax liability of $ _____ per year. The current property tax liability for a property valued

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at $ _____ (median assessed value in City, Town) is $ _____.

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     In addition, the city or town shall state the exemption amount for the motor vehicle tax.

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     A property tax rate of $________ (adjusted current property tax rate) would be needed in

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the coming budget year to raise five and one-half percent (5.5%) more, as an adjustment for

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increased costs, than the property tax revenues being raised in the current budget year.

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     The (City, Town) budget __________ will be considered at (date, time, place).

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The above property tax estimates have been computed in a manner approved by the

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Rhode Island Department of Revenue.

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Chief Elected Official

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(Town, or City)

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     SECTION 2. This act shall take effect upon passage.

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LC01355

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- PROPERTY TAX AND DISCLOSURE -- MUNICIPAL

BUDGETS

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     This act would require cities and towns to publish in a newspaper of general circulation

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and on the official municipal website, if available, the proposed tax rate for both residential and

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commercial property as applied to a property representing the median assessed value within the

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city or town when there is a proposed increase or decrease to the property tax rate in that city or

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town.

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     This act would take effect upon passage.

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LC01355

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