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2013 -- S 0207 | |
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LC00539 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2013 | |
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A N A C T | |
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RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES | |
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Introduced By: Senators Cote, and Picard | |
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Date Introduced: February 06, 2013 | |
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Referred To: Senate Housing & Municipal Government | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 44-5-13.11 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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44-5-13.11. Qualifying low-income housing -- Assessment and taxation. – (a) Any |
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residential property that has been issued an occupancy permit on or after January 1, 1995, after |
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substantial rehabilitation as defined by the U.S. Department of Housing and Urban Development |
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and is encumbered by a covenant recorded in the land records in favor of a governmental unit or |
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Rhode Island housing and mortgage finance corporation restricting either or both the rents that |
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may be charged to tenants of the property or the incomes of the occupants of the property, is |
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subject to a tax that equals eight percent (8%) of the property's previous years' gross scheduled |
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rental income or a lesser percentage as determined by each municipality. |
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(b) Provided, that as to any residential property that has been issued an occupancy permit |
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on or after January 1, 2013 which would otherwise be subject to the municipal tax cap provided |
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for in subsection (a) herein, said property shall not be subject to the limitations in the municipal |
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tax cap if all of the following provisions are met: |
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(1) The property is located in a city or town that has promulgated zoning or land use |
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ordinances, requirements, and/or regulations to implement a comprehensive plan which has been |
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adopted and approved pursuant to the provisions of this chapter 45-22.2 (“Rhode Island |
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Comprehensive Planning and Land Use Act”) and chapter 45-22.3 (“State Comprehensive Plan |
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Appeals Board”); and |
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(2) The housing element of the comprehensive plan provides for low and moderate |
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income housing in excess of ten percent (10%) of the year-round housing units or fifteen percent |
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(15%) of the occupied year-round rental housing units pursuant to the provisions of chapters 45- |
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22.2 (“Rhode Island Comprehensive Planning and Land Use Act”) and 45-22.3 (“State |
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Comprehensive Plan Appeals Board”); and |
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(3) The municipality has met requirements of having either ten percent (10%) of the year- |
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round housing units or fifteen percent (15%) of the occupied year-round rental housing units |
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qualify as low and moderate income housing and maintains such requirements for the entire fiscal |
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year for which the municipality seeks to tax beyond the municipal tax cap; and |
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(4) The municipality has met all minimum housing requirements provided for in chapter |
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45-53 (low and Moderate Income Housing). |
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(c) If at any time during the entire fiscal year a municipality which has initially met the |
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requirements of subsection (b) fails to continue to meet the requirements of subsection (b) then |
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the municipal tax cap contained in subsection (a) herein shall apply to the appropriate residential |
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properties. |
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(d) The Rhode Island housing and mortgage finance corporation shall annually certify the |
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percentage of low and moderate income housing available in each municipality to the general |
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assembly and to the general treasurer. |
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SECTION 2. This act shall take effect upon passage and apply retroactively to January 1, |
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2013. |
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LC00539 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES | |
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This act would permit municipalities which meet the state-required minimums for low |
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and moderate income housing to tax certain residences and units at a rate above the tax cap for |
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certain residences and units issued an occupancy permit on or after January 1, 2013, so long as |
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the municipality maintains the required percentages of low and moderate income housing. |
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This act would take effect upon passage and apply retroactively to January 1, 2013. |
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LC00539 | |
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