2013 -- H 5391

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TAXATION-LEVY AND ASSESSMENT OF LOCAL TAXES-CENTRAL

FALLS

     Introduced By: Representatives Silva, Hull, and McLaughlin

     Date Introduced: February 12, 2013

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-5-61.1 of the General Laws in Chapter 44-5 entitled "Levy and

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Assessment of Local Taxes" is hereby amended to read as follows:

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     44-5-61.1. Central Falls -- Exemption or stabilizing of taxes on qualifying property

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located in the city. -- Except as provided in this section, the city council of the city of Central

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Falls may vote to authorize for a period not exceeding five (5) ten (10) years, and subject to the

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conditions provided in this section, to exempt from payment, in whole or in part, real and

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personal qualifying property, or to determine a stabilized amount, of taxes to be paid on account

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of the qualifying property located within the city of Central Falls, notwithstanding the valuation

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of the property or the rate of tax; provided, that after a public hearing, at least ten (10) days'

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notice of which must be given in a newspaper having a general circulation in the city, the city

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council determines that granting of the exemption or stabilization for qualifying property will

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inure to the benefit of the city by reason of the willingness of the owners of qualifying property to

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replace, reconstruct, expand or remodel existing buildings, facilities, machinery, or equipment

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with modern buildings, facilities, fixtures, machinery, or equipment or to construct new buildings

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or facilities or acquire new machinery or equipment for use in the buildings or facilities or to

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reoccupy or reuse the buildings or facilities if they are vacant or abandoned for

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manufacturing/warehousing or research and development, resulting in an increase in investment

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by the owners in the city. For purposes of this section, "qualifying property" means any building

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or structures used or intended to be used essentially for offices, manufacturing, or commercial

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enterprises. Except as provided in this section, property, the payment of taxes on which has been

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so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during

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the period for which the exemption or stabilization of the amount of taxes is granted, be further

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liable to taxation by the city so long as that property is used or intended to be used for the

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manufacturing or commercial purposes for which the exemption or stabilized amount of taxes

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was made.

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     SECTION 2. Section 44-5-12 of the General Laws in Chapter 44-5 entitled "Levy and

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Assessment of Local Taxes" is hereby amended to read as follows:

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     44-5-12. Assessment at full and fair cash value. -- (a) All real property subject to

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taxation shall be assessed at its full and fair cash value, or at a uniform percentage of its value,

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not to exceed one hundred percent (100%), to be determined by the assessors in each town or

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city; provided, that:

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      (1) Any residential property encumbered by a covenant recorded in the land records in

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favor of a governmental unit or Rhode Island housing and mortgage finance corporation

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restricting either or both the rents that may be charged or the incomes of the occupants shall be

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assessed and taxed in accordance with section 44-5-13.11;

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      (2) In assessing real estate which is classified as farm land, forest, or open space land in

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accordance with chapter 27 of this title the assessors shall consider no factors in determining the

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full and fair cash value of the real estate other than those which relate to that use without regard

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to neighborhood land use of a more intensive nature;

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      (3) Warwick. - The city council of the city of Warwick is authorized to provide, by

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ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick

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who makes any improvements or additions on his or her principal place of residence in the

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amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the

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city of Warwick, is exempt from reassessment of property taxes on the improvement or addition

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until the next general citywide reevaluation of property values by the tax assessor. For the

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purposes of this section, "residence" is defined as voting address. This exemption does not apply

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to any commercial structure. The property owner shall supply all necessary plans to the building

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official for the improvements or addition and shall pay all requisite building and other permitting

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fees as now are required by law; and

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      (4) Central Falls. - The city council of the city of Central Falls is authorized to provide,

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by ordinance, that the owner of any dwelling of one to eight (8) units who makes any

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improvements or additions to his or her residential or rental property in an amount not to exceed

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twenty twenty-five thousand dollars ($20,000) ($25,000) as determined by the tax assessor of the

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city of Central Falls is exempt from reassessment of property taxes on the improvement or

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addition until the next general citywide reevaluation of property values by the tax assessor. The

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property owner shall supply all necessary plans to the building official for the improvements or

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additions and shall pay all requisite building and other permitting fees as are now required by

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law.

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      (5) Tangible property shall be assessed according to the asset classification table as

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defined in section 44-5-12.1.

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      (b) Municipalities shall make available to every land owner whose property is taxed

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under the provisions of this section a document which may be signed before a notary public

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containing language to the effect that they are aware of the additional taxes imposed by the

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provisions of section 44-5-39 in the event that they use land classified as farm, forest, or open

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space land for another purpose.

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      (c) Pursuant to the provisions of section 44-3-29.1, all wholesale and retail inventory

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subject to taxation is assessed at its full and fair cash value, or at a uniform percentage of its

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value, not to exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each

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town and city. Once the fiscal year 1999 value of the inventory has been assessed, this value shall

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not increase. The phase-out rate schedule established in section 44-3-29.1(d) applies to this fixed

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value in each year of the phase-out.

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     SECTION 3. This act shall take effect upon passage.

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LC01100

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION-LEVY AND ASSESSMENT OF LOCAL TAXES-CENTRAL

FALLS

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     This act would authorize the city council of the city of Central Falls to increase the

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amount of time for tax exemptions for certain improvements to qualifying real and personal

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property from five (5) years to ten (10) years, and the amount from twenty thousand dollars

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($20,000) to twenty-five thousand dollars ($25,000).

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     This act would take effect upon passage.

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