2021 -- S 0642

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LC000289

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

____________

A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

     Introduced By: Senators Bell, Mack, and Mendes

     Date Introduced: March 18, 2021

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 44-3-9, 44-3-9.1, 44-3-9.1.1, 44-3-9.2, 44-3-9.2.1, 44-3-9.3, 44-3-

9.4, 44-3-9.5, 44-3-9.6, 44-3-9.7, 44-3-9.8, 44-3-9.10 and 44-3-47 of the General Laws in Chapter

44-3 entitled "Property Subject to Taxation" are hereby repealed.

     44-3-9. Exemption or stabilizing of taxes on property used for manufacturing,

commercial, or residential purposes.

     (a)(1) Except as provided in this section, the electors of any city or town qualified to vote

on a proposition to appropriate money or impose a tax when legally assembled, may vote to

authorize the city or town council, for a period not exceeding twenty (20) years, and subject to the

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

personal property which has undergone environmental remediation, is historically preserved, or is

used for affordable housing, 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, that after public hearings, at least ten (10) days' notice of

which shall be given in a newspaper having a general circulation in the city or town, the city or

town council determines that:

     (i) Granting of the exemption or stabilization will inure to the benefit of the city or town

by reason of:

     (A) The willingness of the manufacturing or commercial concern to locate in the city or

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 city or town and not substantially reduce its work force in the city or town; or

     (C) An improvement of the physical plant of the city or town which will result in a long-

term economic benefit to the city or town and state; or

     (D) An improvement which converts or makes available land or facility that would

otherwise be not developable or difficult to develop without substantial environmental remediation;

or

     (ii) Granting of the exemption or stabilization of taxes will inure to the benefit of the city

or town by reason of the willingness of a manufacturing or commercial or residential firm or

property owner to construct new or to 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 city or town;

     (2) Provided that should the city or town council make the determination in subparagraph

(1)(i)(B) of this subsection, 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 city or 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 provided in this section, 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 of the state to the extent assessed upon or apportioned to the

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city or town, and the interest on the indebtedness, 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

provided in this section for any manufacturing or commercial concern relocating from one city or

town within the state of Rhode Island to another.

     (g) Renewable energy resources, as defined in § 39-26-5, qualify for tax stabilization

agreements pursuant to § 44-3-9(a).

     44-3-9.1. Woonsocket -- Exemption or stabilizing of taxes on qualifying property

located in designated districts in the city.

     (a) Except as provided in this section, the city council of the city of Woonsocket may vote

to authorize, for a period not exceeding ten (10) years, and subject to the conditions provided in

this section, to exempt from payment, in whole or in part, real and personal qualifying property, or

to determine a stabilized amount, of taxes to be paid on account of the qualifying property located

within a district designated by the city council, notwithstanding the valuation of the property or the

rate of tax; provided, that after a public hearing, at least ten (10) days' notice of which shall be

given in a newspaper having a general circulation in the city, the city council determines that

designation of the district and granting of the exemption or stabilization for qualifying property

located in the city will inure to the benefit of the city by reason of the willingness of owners of

qualifying property to replace, reconstruct, expand, or remodel existing buildings, facilities,

machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment, or

to construct new buildings or facilities or acquire new machinery or equipment for use in such

buildings or facilities, resulting in an increase in investment by such owners in the city.

     (b) For purposes of this section, "qualifying property" means any building or structures

used or intended to be used essentially for offices or commercial enterprises or for residential

purposes.

     (c) Except as provided in this section, 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 so long as that property is used or intended to be used for the manufacturing,

commercial, or residential purposes for which the exemption or stabilized amount of taxes was

made.

     (d) Notwithstanding any vote and findings by the city council, the property shall be

assessed for and shall pay that portion of the tax, if any, assessed by the city, for the purpose of

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paying the indebtedness of the city and the indebtedness of the state or any political subdivision of

the state to the extent assessed upon or apportioned to the city, and the interest on the indebtedness,

and for appropriation to any sinking fund of the city, 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.

     44-3-9.1.1. Woonsocket -- Rehabilitation exemption for qualified residential

structures in the city.

     (a)(1) The tax assessor of the city of Woonsocket is authorized to grant a rehabilitation

exemption from taxation for certain qualified residential structures. A "qualified residential

structure" is defined as a residential structure or structures which is or are certified by the building

inspection services division of the city of Woonsocket as being eligible for exemption. Eligibility

for the exemption may be provided if the following conditions are met:

     (i) The property is strictly residential in nature, consisting of three (3) or more units on a

single lot, and was acquired by the applicant at a date subsequent to its being certified as vacant by

the building inspection services division. The building inspection services division will maintain a

list of vacant properties, which will be updated monthly.

     (ii) All permits necessary for the completed renovations, which will make the building(s)

meet minimum housing codes must be issued and provided to the tax assessor from the building

inspection services division. An inspection of the structure by the building inspection services

division, including the owner, contractor, electrical contractor, and minimum housing inspector,

shall be done prior to the beginning of renovation.

     (2) Upon furnishing to the city assessor proof that the requirements of subdivision (1) of

this subsection have been met, the assessor shall certify to the applicant, in writing, that the property

is eligible.

     (b) Upon certification of eligibility, the property shall receive the following rehabilitation

exemption:

     (1) For both owner occupied and non-owner occupied, the assessment for the next tax year,

hereinafter called "the base year," shall be zero percent (0%) of the previous year's valuation;

     (2) If owner occupied, the assessment for the second year following certification shall be

twenty percent (20%) of the base year's valuation. If non-owner occupied, the assessment for the

second year shall be fifty percent (50%) of the base year's valuation;

     (3) If owner occupied, the assessment for the third year following certification shall be

forty percent (40%) of the base year's valuation. If non-owner occupied, the assessment for the

third year following certification shall be one hundred percent (100%) of the base year's valuation

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plus the value of the improvements added to the original valuation;

     (4) If owner occupied, the assessment for the fourth year following certification shall be

sixty percent (60%) of the base year's valuation;

     (5) If owner occupied, the assessment for the fifth year following certification shall be

eighty percent (80%) of the base year's valuation;

     (6) If owner occupied, the assessment for the sixth year following certification shall be one

hundred percent (100%) of the base year's valuation plus the value of the improvements added to

the original valuation.

     (c) If the city of Woonsocket implements property revaluation during the program, the

original base year's valuation shall be replaced by the new assessed valuation with the percentage

adjustment made as specified.

     (d) The rehabilitation exemption shall not apply to any of the following types of properties:

     (1) Mixed commercial and residential use;

     (2) Commercial and/or industrial use;

     (3) Single- and two-family properties;

     (4) Properties damaged by fire which are covered by insurance;

     (5) Properties boarded or secured to protect mortgagor's interest, and not due to disrepair.

     (e) The rehabilitation exemption shall cease upon the occurrence of any one of the

following conditions:

     (1) Property is sold or title transferred at any time during the term of said exemption;

     (2) Failure to complete permitted work within a timely manner as determined by the

building inspector;

     (3) In properties that were owner-occupied, if the owner moves out of the property, the

property's exemption changes to whatever status it would be if it were in the non-owner occupied

status.

     44-3-9.2. North Smithfield -- Exemption or stabilizing of taxes on qualifying property

used for manufacturing or commercial purposes.

     (a) Except as provided in this section, the town council of the town of North Smithfield

may vote to authorize, for a period not to exceed ten (10) years, and subject to the conditions

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

used for manufacturing or commercial 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, 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:

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     (1) Granting of the exemption or stabilization of taxes will inure to the benefit of the town

by reason of:

     (i) The willingness of the manufacturing or commercial firm or concern to locate in the

town; or

     (ii) The willingness of a manufacturing or commercial firm or concern to expand facilities

with an increase in employment; or

     (2) 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 firm or concern to replace,

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

with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase in plant

or commercial building investment by the firm or concern in the town.

     (b) For purposes of this section, "real property used for commercial purposes" includes any

building or structure used for offices or commercial enterprises including without limitation any

building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used

for service industries, or used for any other commercial business and the land on which the building

or structure is situated and not used for residential purposes.

     (c) For purposes of this section, "personal property used for commercial purposes" means

any personal property owned by a firm or concern occupying a building, structure, and/or land used

for commercial purposes and used by such firm or concern in its commercial enterprise including,

without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.

     (d) Except as provided in this section, 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 town in which the property is located so long as the property is used for the

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

made.

     (e) Notwithstanding any vote and findings by the town council, the property shall be

assessed for and shall pay that portion of the tax, if any, assessed by the town of North Smithfield

for the purpose of paying the indebtedness of the town and the indebtedness of the state or any

political subdivision of the state to the extent assessed upon or apportioned to the town, and the

interest on the indebtedness, and for appropriation to any sinking fund of the 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.

     44-3-9.2.1. North Smithfield -- Exemption or partial abatement of taxes for Rankin

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Estates.

     The town council of the town of North Smithfield may vote, at a duly noticed public

meeting, to grant a partial abatement of taxes for a sum total yearly abatement in the amount of

fourteen thousand three hundred dollars ($14,300), for a period of seven (7) years from the date of

master plan approval for a grand total of one hundred thousand one hundred dollars ($100,100) in

abatements for the real property known as "Rankin Estates" which consists of property located in

the town of North Smithfield laid out and designated as assessor's plat 14, Lots 17, 19, 20, 29, 31-

34, 36, 88, 93, 106, 107, 123, 125, 128, 135, 136, 139, 140, 141, 144, 145, 147, 159, 202, 242.

     44-3-9.3. Burrillville -- Exemption or stabilizing of taxes on qualifying property used

for manufacturing, commercial or mixed-use purposes.

     (a) Except as provided in this section, the town council of the town of Burrillville may vote

to authorize, for a period not to exceed ten (10) years, and subject to the conditions as provided in

this section, to exempt from payment, in whole or in part, real and personal property used for

manufacturing, commercial or mixed-use purposes, or to determine a stabilized amount of taxes to

be paid on account of such property, notwithstanding the valuation of the property or the rate of

tax; provided, 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:

     (1) Granting of the exemption or stabilization of taxes will inure to the benefit of the town

by reason of:

     (i) The willingness of the manufacturing or commercial firm or concern to locate in the

town; or

     (ii) The willingness of a manufacturing or commercial firm or concern to expand facilities

with an increase in employment; or

     (2) Granting of the exemption or stabilization of taxes will inure to the benefit of the town

by reason of the willingness of a manufacturing, commercial or mixed-use firm or concern to

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

equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an

increase in plant, commercial or mixed-use building investment by the firm or concern in the town.

     (b) For purposes of this section, "real property used for commercial or mixed-use purposes"

includes any building or structure used for offices or commercial enterprises, including, without

limitation, any building or structure used for wholesale, warehouse, distribution, and/or storage

businesses, used for service industries, or used for any other commercial business, including mixed-

use, and the land on which any such building or structure is situated and not used solely for

residential purposes.

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     (c) For purposes of this section, "personal property used for commercial or mixed-use

purposes" means any personal property owned by a firm or concern occupying a building, structure,

and/or land used for commercial or mixed-use purposes and used by such firm or concern in its

commercial or mixed-use enterprise including, without limitation, furniture, fixtures, equipment,

machinery, stock in trade, and inventory.

     (d) Except as provided in this section, real and personal property, the payment of taxes on

which has been so exempted or that 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 town in which the property is located so long as the property is

used for the manufacturing, commercial or mixed-use purposes for which the exemption or

stabilized amount of taxes was made.

     (e) Notwithstanding any vote and findings by the town council, the property shall be

assessed for and shall pay that portion of the tax, if any, assessed by the town of Burrillville, for

the purpose of paying the indebtedness of the town and the indebtedness of the state or any political

subdivision of the state to the extent assessed upon or apportioned to the town, and the interest on

the indebtedness, and for appropriation to any sinking fund of the 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.

     44-3-9.4. Middletown -- Economic development tax incentive program -- Assessed

valuation exemptions or stabilizing of taxes.

     (a) The town council of the Town of Middletown may, by ordinance, provide for a schedule

of exemptions from assessed valuation for real and personal property of property owners or

businesses which create jobs in the town and which qualify under such ordinance.

     (b) The town council of the Town of Middletown may, by ordinance, provide for a schedule

of exemptions from assessed valuation or determine a stabilized amount of taxes to be paid for real

and personal property of property owners or businesses for any retrofit, expansion or renovation of

specifically permitted uses under such ordinance and which qualify under such ordinance. The

ordinance shall specify the kinds of retrofitting, expansion and renovation for which exemptions or

stabilization will be permitted. The exemption shall be for a period of no more than five (5) years.

     (c) The amount of the exemption or stabilization and the rules and regulations regarding

the eligibility and qualification for the exemption or stabilization shall be provided by ordinance

and the town council may, from time to time, by amendment to the ordinance, make those changes

in the amount of exemption or stabilization or in the rules and regulations regarding eligibility and

qualification for exemption as it deems necessary.

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     44-3-9.5. North Providence -- Exemption or stabilizing of taxes on qualifying property

used for manufacturing or commercial purposes.

     (a) Except as provided in this section, the town council of the town of North Providence

may vote to authorize, for a period not to exceed ten (10) years, and subject to the conditions as

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

used for manufacturing, or commercial purposes, or to determine a stabilized amount of taxes to be

paid on account of such property, notwithstanding the valuation of the property or the rate of tax;

provided, 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:

     (1) Granting of the exemption or stabilization of taxes will inure to the benefit of the town

by reason of:

     (i) The willingness of the manufacturing or commercial firm or concern to locate in the

town; or

     (ii) The willingness of a manufacturing or commercial firm or concern to expand facilities

with an increase in employment; or

     (2) 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 firm or concern to replace,

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

with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase in plant

or commercial building investment by the firm or concern in the town.

     (b) For purposes of this section, "real property used for commercial purposes" includes any

building or structure used for offices or commercial enterprises including, without limitation, any

building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used

for service industries, or used for any other commercial business, and the land on which any such

building or structure is situated and not used for residential purposes.

     (c) For purposes of this section, "personal property used for commercial purposes" means

any personal property owned by a firm or concern occupying a building, structure, and/or land used

for commercial purposes and used by such firm or concern in its commercial enterprise including,

without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.

     (d) Except as provided in this section, 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 town in which the property is located so long as the property is used for the

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

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made.

     (e) Notwithstanding any vote and findings by the town council, the property shall be

assessed for and shall pay that portion of the tax if any assessed by the town of North Providence

for the purpose of paying the indebtedness of the town and the indebtedness of the state or any

political subdivision of the state to the extent assessed upon or apportioned to the town, and the

interest on the indebtedness, and for appropriation to any sinking fund of the 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.

     44-3-9.6. Richmond -- Exemption or stabilization tax on qualified property used for

manufacturing or commercial purposes in the town Richmond.

     (a) Except as provided in this section, the town council of the town of Richmond may vote

to authorize, for a period not exceeding twenty (20) years, and subject to the conditions provided

in this section, to exempt from payment, in whole or part, real and personal property used for

manufacturing or commercial 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,

that after public hearings, at least ten (10) days' notice of which shall be given in a newspaper of

general circulation in the town, the town council determines that:

     (1) Granting of the exemption or stabilization will inure to the benefit of the town by reason

of:

     (i) The willingness of the manufacturer or commercial concern to locate in the town; or

     (ii) 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 its work force in the town; or

     (iii) An improvement of the physical plant of the town that will result in long-term

economic benefits to the town and the state.

     (2) 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 concern or property owner to

construct new or to replace, reconstruct, convert, expand, retain or remodel existing buildings,

facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery,

or equipment, resulting in the maintenance of, or an increase in, the manufacturing or commercial

property investment by the firm or property owner in the town.

     (b) Should the town council make the determination in paragraphs (a)(1)(i) through

paragraphs (a)(1)(iii), or subdivision (a)(2) of this section, an exemption or stabilization may be

granted for existing buildings, property, machinery, or facilities owned by businesses already

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located in the town of Richmond on August 6, 2003.

     (c) For the purposes of this section, "commercial property" means any structure or facility

used essentially for offices or commercial enterprises.

     (d) Except as provided in this section, property for which taxes have been exempted in

whole or part, or stabilized pursuant to this section, shall not, during the period for which taxes

have been exempted or stabilized, be further liable to taxation by the town so long as the property

is used for the manufacturing or commercial purpose for which the exemption or stabilization was

granted.

     (e) Notwithstanding any vote of, or findings by the town council, the property shall be

assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of

paying the indebtedness of the town and the indebtedness of the state or any political subdivision

of the state, to the extent assessed upon or apportioned to the town, and the interest on the

indebtedness, and for appropriation to any sinking fund of the 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) Any application for tax exemption or stabilization submitted pursuant to this section

shall be submitted before an application for development plan review is submitted to the Richmond

Planning Board pursuant to Chapter 18 of the Code of Ordinances, as amended.

     (g) Any tax exemption or stabilization granted by the town council pursuant to this section

shall be applicable for a period beginning on the first day of the fiscal year in which the exemption

or stabilization is granted.

     (h) If a property owner whose property tax has been exempted or stabilized pursuant to this

section becomes delinquent in the payment of its property taxes, or transfers ownership of its

business, the town council shall have the authority to review and terminate the tax exemption or

stabilization agreement.

     44-3-9.7. South Kingstown -- Exemption or stabilization of tax on qualified property

used for manufacturing or commercial purposes in the town of South Kingstown.

     (a) Except as provided in this section, the town council of the town of South Kingstown

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

provided in this section, to exempt from payment, in whole or part, real and personal property used

for manufacturing or commercial 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, that after public hearings, at least ten (10) days' notice of which shall be given in a

newspaper of general circulation in the town, the town council determines that:

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     (1) Granting of the exemption or stabilization of taxes will inure to the benefit of the town

by reason of:

     (i) The willingness of the manufacturing or commercial concern to locate in the town; or

     (ii) 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 its work force in the town; or

     (iii) An improvement of the physical plant of the town that will result in long-term

economic benefits to the town and the state.

     (2) 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 firm or concern to replace,

reconstruct, expand or remodel existing buildings, facilities, fixtures, machinery, or equipment with

modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase in, plant or

commercial building investment by the firm or concern in the town.

     (b) Should the town council make the determination in paragraphs (a)(1)(i) -- paragraphs

(a)(1)(iii), or subdivision (a)(2) of this section, an exemption or stabilization may be granted for

existing buildings, property, machinery, or facilities owned by businesses already located in the

town of South Kingstown on January 1, 2006.

     (c) For the purposes of this section, "real property used for manufacturing or commercial

purposes" includes any building or structure used for offices or commercial enterprises including

without limitation any building or structure used for wholesale, warehouse, distribution, and/or

storage business, used for service industries, or used for any other commercial business and the

land on which the building or structure is situated and not used for residential purposes.

     (d) For purposes of this section, "personal property used for manufacturing or commercial

purposes" means any personal property owned by a firm or concern occupying a building, structure,

and/or land used for commercial purposes and used by such firm or concern in its commercial

enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade,

and inventory.

     (e) Except as provided in this section, property for which taxes have been exempted in

whole or part, or stabilized pursuant to this section, shall not, during the period for which taxes

have been exempted or stabilized, be further liable to taxation by the town so long as the property

is used for the manufacturing or commercial purpose for which the exemption or stabilization was

granted.

     (f) Notwithstanding any vote of, or findings by the town council, the property shall be

assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of

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paying the indebtedness of the town and the indebtedness of the state or any political subdivision

of the state, to the extent assessed upon or apportioned to the town, and the interest on the

indebtedness, and for appropriation to any sinking fund of the 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.

     (g) Any application for tax exemption or stabilization submitted pursuant to this section

shall be submitted before an application for development plan review is submitted to the South

Kingstown planning board, as applicable, or for other such permits and/or approvals that may be

required from any other town board or commission.

     (h) Any tax exemption or stabilization granted by the town council pursuant to this section

shall be applicable for a period beginning on the first day of the fiscal year in which the exemption

or stabilization is granted.

     (i) If a property owner whose property tax has been exempted or stabilized pursuant to this

section becomes delinquent in the payment of its property taxes, or transfers ownership of its

business, the town council shall have the authority to review and terminate the tax exemption or

stabilization agreement.

     44-3-9.8. West Greenwich -- Exemption or stabilization of tax on qualified property

used for manufacturing or commercial purposes in the town of West Greenwich.

     (a) Except as provided in this section, the town council of the town of West Greenwich

may vote to authorize, for a period not exceeding twelve (12) years, and subject to the conditions

provided in this section, to exempt from payment, in whole or part, real and personal property used

for manufacturing or commercial 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, that after public hearings, at least ten (10) days' notice of which shall be given in a

newspaper of general circulation in the town, the town council determines that:

     (1) Granting of the exemption or stabilization of taxes will inure to the benefit of the town

by reason of:

     (i) The willingness of the manufacturing or commercial concern to locate in the town; or

     (ii) 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 its work force in the town; or

     (iii) An improvement of the physical plant of the town that will result in long-term

economic benefits to the town and the state.

     (2) Granting of the exemption or stabilization of taxes will inure to the benefit of the town

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by reason of the willingness of a manufacturing or commercial firm or concern to replace,

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

with modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase in

plant or commercial building investments by the firm or concern in the town.

     (b) Should the town council make the determination in subsections (a)(1)(i) -- (a)(1)(iii) or

(a)(2) of this section, an exemption or stabilization may be granted for existing buildings, property,

machinery, or facilities owned by businesses already located in the town of West Greenwich on

January 1, 2011.

     (c) For the purposes of this section, "real property used for manufacturing or commercial

purposes" includes any building or structure used for offices or commercial enterprises, including,

without limitation, any building or structure used for wholesale, warehouse, distribution, and/or

storage business, used for service industries, or used for any other commercial business and the

land on which the building or structure is situated and not used for residential purposes.

     (d) For purposes of this section, "personal property used for manufacturing or commercial

purposes" means any personal property owned by a firm or concern occupying a building, structure,

and/or land used for commercial purposes and used by such firm or concern in its commercial

enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade,

and inventory.

     (e) Except as provided in this section, property for which taxes have been exempted in

whole or in part, or stabilized pursuant to this section, shall not, during the period for which taxes

have been exempted or stabilized, be further liable to taxation by the town so long as the property

is used for the manufacturing or commercial purposes for which the exemption or stabilization was

granted.

     (f) Notwithstanding any vote of or findings by the town council, the property shall be

assessed for and shall pay that portion of the tax, if any, assessed by the town for the purpose of

paying the indebtedness of the town and the indebtedness of the state, or any political subdivision

of the state, to the appropriation to any sinking fund of the 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.

     (g) Any application for tax exemption or stabilization submitted pursuant to this section

shall be submitted before an application for development plan review is submitted to the West

Greenwich planning board, as applicable, or for other such permits and/or approvals that may be

required from any other town board or commission.

     (h) Any tax exemption or stabilization granted by the town council pursuant to this section

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shall be applicable for a period beginning on the first day of the fiscal year in which the exemption

or stabilization is granted.

     (i) If a property owner whose property tax has been exempted or stabilized pursuant to this

section becomes delinquent in the payment of its property taxes, or transfers ownership of its

business, the town council shall have the authority to review and terminate the tax exemption or

stabilization agreement.

     44-3-9.10. Portsmouth -- Exemption or stabilizing of taxes on qualified property used

for manufacturing or commercial purposes in the town of Portsmouth.

     (a) Notwithstanding any provisions of § 44-3-9 to the contrary, except as provided in this

section, the town council of the town of Portsmouth may vote to authorize, for a period not

exceeding ten (10) years, and subject to the conditions provided in this section, to exempt from

payment, in whole or part, real and personal property used for manufacturing or commercial

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, that after public hearings,

at least ten (10) days' notice of which shall be given in a newspaper of general circulation in the

town, the town council determines that:

     (1) Granting of the exemption or stabilization of taxes will inure to the benefit of the town

by reason of:

     (i) The willingness of the manufacturing or commercial concern to locate in the town; or

     (ii) 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 its work force in the town; or

     (iii) An improvement of the physical plant of the town that will result in long-term

economic benefits to the town and the state.

     (2) 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 firm or concern to replace,

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

with modern buildings, facilities, fixtures, machinery, or equipment, resulting in an increase in

plant or commercial building investments by the firm or concern in the town.

     (b) Should the town council make the determination in subsections (a)(1)(i) through

(a)(1)(iii), or subsection (a)(2), an exemption or stabilization may be granted for existing buildings,

property, machinery, or facilities owned by businesses already located in the town of Portsmouth

on January 1, 2016.

     (c) For the purposes of this section, "real property used for manufacturing or commercial

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purposes" means and includes any building or structure used for offices or commercial enterprises

including, without limitation, any building or structure used for wholesale, warehouse, distribution,

and/or storage business, used for service industries, or used for any other commercial business, and

not the land on which the building or structure is situated, and not used for residential purposes.

     (d) For purposes of this section, "personal property used for manufacturing or commercial

purposes" means any personal property owned by a firm or concern occupying a building, structure,

and/or land used for commercial purposes and used by such firm or concern in its commercial

enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade,

and inventory.

     (e) Except as provided in this section, property for which taxes have been exempted in

whole or in part, or stabilized pursuant to this section, shall not, during the period for which taxes

have been exempted or stabilized, be further liable to taxation by the town so long as the property

is used for the manufacturing or commercial purposes for which the exemption or stabilization was

granted.

     (f) Notwithstanding any vote of, or findings by, the town council, the property shall be

assessed for, and shall pay, that portion of the tax, if any, assessed by the town for the purpose of

paying the indebtedness of the town and the indebtedness of the state or any political subdivision

of the state, to the appropriation to any sinking fund of the 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.

     (g) Any application for tax exemption or stabilization submitted pursuant to this section

shall be submitted before an application for development plan review is submitted to the

Portsmouth planning board, as applicable, or for other such permits and/or approvals that may be

required from any other town board or commission.

     (h) Any tax exemption or stabilization granted by the town council pursuant to this section

shall be applicable for a period beginning on the first day of the fiscal year in which the exemption

or stabilization is granted.

     (i) If a property owner whose property tax has been exempted or stabilized pursuant to this

section becomes delinquent in the payment of its property taxes, or transfers ownership of its

business, the town council shall have the authority to review and terminate the tax exemption or

stabilization agreement.

     (j) Nothing in this section shall be deemed to permit the exemption or stabilization provided

in this section for any manufacturing or commercial concern relocating from one city or town

within the state of Rhode Island to the town of Portsmouth.

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     44-3-47. Cranston -- Economic development tax incentive program Exemptions.

     The city council of the city of Cranston may, by ordinance, provide exemptions from

assessed valuation for real and tangible personal property of property owners or businesses which

create jobs in the city of Cranston and any property owners or businesses for any retrofit, expansion,

or renovation of specifically permitted uses; provided, that the exemption shall be for a period of

not more than ten (10) years.

     SECTION 2. Sections 44-5-55.1, 44-5-55.2, 44-5-61, 44-5-61.1 and 44-5-61.2 of the

General Laws in Chapter 44-5 entitled "Levy and Assessment of Local Taxes" are hereby repealed.

     44-5-55.1. Burrillville -- Tax levy assessment stabilization. [As amended by P.L. 2020,

ch. 53, § 1.]

     The town of Burrillville is authorized to establish by ordinance a process to stabilize tax

assessments and/or provide tax credits for physical improvements made to certain properties

located in areas of town that have been designated substandard by the town's comprehensive plan

or as may be separately designated by the town council. Specifically, said ordinance shall provide

that physical improvements made to any commercial, industrial, mixed use buildings, and

apartment houses with six (6) or more legal units located in areas that have been designated may

be eligible for tax stabilization and/or a tax credit against their real estate tax levy as set forth in the

town's ordinance. The stabilization granted or tax credit based upon these improvements shall be

in place for a period not to exceed ten (10) years from the date on which the work on the

improvements shall have been completed. All improvements made to the property will be assessed

accordingly as of December 31 of each year per § 44-5-1. The ordinance shall also include a process

for an applicant to apply and qualify for said credits.

     44-5-55.2. Burrillville -- Tax levy and stabilization. ¤As added by P.L. 2020, ch. 50, §

2.ó.

     The town of Burrillville is authorized to establish by ordinance a process to stabilize tax

assessments and provide tax credits for physical improvements made to certain properties located

in areas of town that have been designated substandard by the town's comprehensive plan or as may

be separately designated by the town council. Specifically, the ordinance shall provide that physical

improvements made to any commercial, industrial, mixed-use buildings, and apartment houses with

six (6) or more legal units located in areas that have been designated substandard may be eligible

for either a tax stabilization or a tax credit against their real estate tax levy as set forth in the town's

ordinance. The stabilization granted or tax credit based upon these improvements shall be in place

for a period not to exceed ten (10) years from the date on which the work on the improvements

shall have been completed. All improvements made to the property will be assessed accordingly as

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of December 31 of each year pursuant to § 44-5-1. The ordinance shall also include a process for

an applicant to apply and qualify for the tax stabilization or tax credits.

     44-5-61. Coventry -- Exemption or stabilizing of taxes on qualifying property used for

manufacturing or commercial purposes in the town.

     (a) Except as provided, the town council of the town of Coventry may vote to authorize,

for a period not to exceed ten (10) years, and subject to the conditions provided, to exempt from

payment, in whole or in part, real and personal property used for manufacturing or commercial

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, that after public hearings,

at least ten (10) days' notice of which is given in a newspaper having a general circulation in the

town, the town council determines that:

     (1) Granting of the exemption or stabilization of taxes inures to the benefit of the town by

reason of:

     (i) The willingness of the manufacturing or commercial firm or concern to locate in the

town; or

     (ii) The willingness of a manufacturing or commercial firm or concern to expend facilities

with an increase in employment; or

     (2) Granting of the exemption or stabilization of taxes inures to the benefit of the town by

reason of the willingness of a manufacturing or commercial firm or concern to replace, reconstruct,

expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern

buildings, facilities, fixtures, machinery, or equipment resulting in an increase in plant or

commercial building investment by the firm or concern in the town.

     (b) For purposes of this section, "real property used for commercial purposes" includes any

building or structure used for offices or commercial enterprises including, without limitation, any

building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used

for service industries, or used for any other commercial business and the land on which the building

or structure is situated and not used for residential purposes.

     (c) For purposes of this section, "personal property used for commercial purposes" means

any personal property owned by a firm or concern occupying a building, structure, and/or land used

for commercial purposes and used by the firm or concern in its commercial enterprise including,

without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.

     (d) Except as 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, is not, during the period for which

the exemption or stabilization of the amount of taxes is granted, further liable to taxation by the

LC000289 - Page 18 of 21

town in which the property is located so long as the property is used for the manufacturing or

commercial purposes for which the exemption or stabilized amount of taxes was made.

     (e) Notwithstanding any vote and findings by the town council, the property shall be

assessed for and shall pay that portion of the tax, if any, assessed by the town of Coventry for the

purpose of paying the indebtedness of the town and the indebtedness of the state or any political

subdivision of the state to the extent assessed upon or apportioned to the town, and the interest

thereon, and for appropriation to any sinking fund of the 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.

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

located in the city.

     Except as provided in this section, the city council of the city of Central Falls may vote to

authorize for a period not exceeding twelve (12) years, and subject to the conditions provided in

this section, to exempt from payment, in whole or in part, real and personal qualifying property, or

to determine a stabilized amount, of taxes to be paid on account of the qualifying property located

within the city of Central Falls, notwithstanding the valuation of the property or the rate of tax;

provided, that after a public hearing, at least ten (10) days' notice of which must be given in a

newspaper having a general circulation in the city, the city council determines that granting of the

exemption or stabilization for qualifying property has inured or will inure to the benefit of the city

by reason of the willingness of the owners of qualifying property to replace, reconstruct, expand or

remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities,

fixtures, machinery, or equipment or to construct new buildings or facilities or acquire new

machinery or equipment for use in the buildings or facilities or to reoccupy or reuse the buildings

or facilities if they are vacant or abandoned for manufacturing/warehousing or research and

development, resulting in an increase in investment by the owners in the city. For purposes of this

section, "qualifying property" means any building or structures used or intended to be used

essentially for offices, manufacturing, or commercial enterprises, including, but not limited to,

financial service enterprises. Except as provided in this section, 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 so long as that property is used or intended to be

used for the manufacturing or commercial purposes for which the exemption or stabilized amount

of taxes was made.

     44-5-61.2. Pawtucket -- 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 Pawtucket may vote to

authorize for a period not exceeding ten (10) years, and subject to the conditions provided in this

section, to exempt from payment, in whole or in part, real and personal qualifying property, or to

determine a stabilized amount, of taxes to be paid on account of the qualifying property located

within the city of Pawtucket, notwithstanding the valuation of the property or the rate of tax;

provided, that after a public hearing, at least ten (10) days' notice of which must be given in a

newspaper having a general circulation in the city, the city council determines that granting of the

exemption or stabilization for qualifying property will inure to the benefit of the city by reason of

the willingness of the owners of qualifying property to replace, reconstruct, expand or remodel

existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures,

machinery, or equipment or to construct new buildings or facilities or acquire new machinery or

equipment for use in the buildings or facilities or to reoccupy or reuse the buildings or facilities if

they are vacant or abandoned for manufacturing/warehousing or research and development,

resulting in an increase in investment by the owners in the city. For purposes of this section,

"qualifying property" means any building or structures used or intended to be used essentially for

offices, manufacturing, or commercial enterprises. Except as provided in this section, 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 so long as that property complies with

any stabilization agreement and is used or intended to be used for the manufacturing or commercial

purposes for which the exemption or stabilized amount of taxes was made.

     SECTION 3. This act shall take effect on July 1, 2021.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

***

     This act would repeal the authority of various cities and towns to provide certain tax

exemptions and tax stabilization agreements.

     This act would take effect on July 1, 2021.

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