2023 -- H 6014  | |
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LC001916  | |
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STATE OF RHODE ISLAND  | |
IN GENERAL ASSEMBLY  | |
JANUARY SESSION, A.D. 2023  | |
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A N A C T  | |
RELATING TO TAXATION -- STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION  | |
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     Introduced By: Representatives Rea, Shallcross Smith, Chippendale, Newberry, Place,   | |
Date Introduced: March 01, 2023  | |
Referred To: House Finance  | |
It is enacted by the General Assembly as follows:  | |
1  | SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by  | 
2  | adding thereto the following chapter:  | 
3  | CHAPTER 5.3  | 
4  | STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION  | 
5  | 44-5.3-1. Statewide tangible property tax exemption.  | 
6  | (a) Notwithstanding the provisions of chapter 5 of this title or any other provisions to the  | 
7  | contrary, in an effort to provide relief for businesses, including small businesses, and to promote  | 
8  | economic development, all ratable, tangible personal property not otherwise exempt from taxation  | 
9  | shall be exempt from taxation up to and including the amount of assessed value set forth in  | 
10  | subsection (b) of this section.  | 
11  | (b) The exemption provided in subsection (a) of this section shall be up to and including  | 
12  | the following amounts:  | 
13  | (1) Five thousand dollars ($5,000) for the tax year ending on December 31, 2024;  | 
14  | (2) Twenty thousand dollars ($20,000) for the tax year ending on December 31, 2025;  | 
15  | (3) Fifty thousand dollars ($50,000) for the tax year ending on December 31, 2026;  | 
16  | (4) One hundred thousand dollars ($100,000) for the tax year ending on December 31,  | 
17  | 2027;  | 
18  | (5) Two hundred fifty thousand dollars ($250,000) for the tax year ending on December  | 
19  | 31, 2028.  | 
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1  | (c) Beginning in fiscal year 2025 and for each fiscal year through fiscal year 2029, cities,  | 
2  | towns, and fire districts shall receive reimbursements, as set forth in this section, from state general  | 
3  | revenues equal to the amount of lost tax revenues due to the reduction of the tangible property tax  | 
4  | in the respective fiscal year as a result of the corresponding exemption set forth in subsections (a)  | 
5  | and (b) of this section.  | 
6  | (d) Beginning in fiscal year 2029, all ratable, tangible personal property assessed at less  | 
7  | than two hundred fifty thousand dollars ($250,000), shall be exempt from taxation.  | 
8  | SECTION 2. This act shall take effect upon passage.  | 
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EXPLANATION  | |
BY THE LEGISLATIVE COUNCIL  | |
OF  | |
A N A C T  | |
RELATING TO TAXATION -- STATEWIDE TANGIBLE PROPERTY TAX EXEMPTION  | |
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1  | This act would phase in an exemption from taxation of all ratable, tangible personal  | 
2  | property of businesses, up to a maximum assessed value of two hundred fifty thousand dollars  | 
3  | ($250,000), over a five (5) year period, at which time, the maximum exemption would become  | 
4  | permanent. This act would also provide for cities, towns, and fire districts to receive reimbursement  | 
5  | from state general revenues equal to the amount of lost tax revenues due to the exemption.  | 
6  | This act would take effect upon passage.  | 
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