2023 -- H 6328

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LC002850

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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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Representatives Carson, and Abney

     Date Introduced: April 26, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-5-76.1 of the General Laws in Chapter 44-5 entitled "Levy and

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

     44-5-76.1. Newport — Property tax classification — List of ratable property.

     (a) Upon adoption of a system of classification of taxable property by the city of Newport,

all ratable property in the city of Newport shall be classified by the assessor as follows:

     (1) Class One: all ratable tangible personal property;

     (2) Class Two: residential real estate with less than four (4) units;

     (3) Class Three: all commercial and industrial real estate and residential real estate with

four (4) units or more; and

     (4) Class Four: motor vehicles and trailers subject to the excise tax created by chapter 34

of this title.

     (b) In lieu of the city of Newport adopting a homestead exemption authorized by

ordinances enacted pursuant to § 44-5-78, the city of Newport may divide the residential real estate

in Class Two of this section, into non-owner occupied and owner-occupied properties and adopt

separate tax rates in compliance with the restrictions set forth in § 44-5-76.2. The city of Newport,

by ordinance or resolution, shall provide rules and regulations, including, but not limited to,

governing the division and definition of non-owner and owner-occupied properties.

     (c) Notwithstanding any other provisions of this section, the city of Newport may, by

ordinance, provide that Class Three as set forth in subsection (a)(3) of this section, may also include

nonowner occupied residential properties used as short-term rentals for tourist or transient use, such

ordinance to be applicable to taxes assessed on or after the assessment date of December 31, 2023.

     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 -- LEVY AND ASSESSMENT OF LOCAL TAXES

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     This act would permit the city of Newport, by separate ordinance, to assess nonowner

occupied residential properties used as short-term rentals for tourists under its Class Three category,

which includes commercial, industrial and residential real estate with four (4) units or more.

     This act would take effect upon passage.

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