2024 -- S 2350

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LC005011

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

     Introduced By: Senator David P. Tikoian

     Date Introduced: February 12, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-3-9.11 of the General Laws in Chapter 44-3 entitled "Property

Subject to Taxation" is hereby amended to read as follows:

     44-3-9.11. Smithfield — Exemption or stabilizing of taxes on qualifying property used

for manufacturing or commercial purposes. Smithfield — Exemption or stabilizing of taxes

on qualifying property used for manufacturing, industrial, or commercial purposes.

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

to authorize, for a period not to exceed ten (10) twenty (20) years, and subject to the conditions

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

used for manufacturing, industrial, 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:

     (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, industrial, or commercial firm or concern to

locate in the town; or

     (ii) The willingness of a manufacturing, industrial, 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, industrial, 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 manufacturing, industrial, or commercial building investment by the firm or

concern in the town.

     (b) For purposes of this section, “real property used for manufacturing, industrial, or

commercial purposes” includes any building or structure used for offices, manufacturing,

industrial, 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 manufacturing, industrial, or 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 manufacturing, industrial, or

commercial purposes” means any personal property owned by a firm or concern in its

manufacturing, industrial, or 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 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, industrial, 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 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.

     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 -- PROPERTY SUBJECT TO TAXATION

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     This act would exempt from taxation real and tangible personal property classified as

industrial. This act would extend the exemption period from ten (10) years to twenty (20) years.

     This act would take effect upon passage.

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LC005011

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