2024 -- S 2571 | |
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LC005284 | |
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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 -- LEVY AND ASSESSMENT OF LOCAL TAXES | |
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Introduced By: Senators McKenney, Valverde, Gu, Lauria, and Burke | |
Date Introduced: March 01, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 44-5-12 of the General Laws in Chapter 44-5 entitled "Levy and |
2 | Assessment of Local Taxes" is hereby amended to read as follows: |
3 | 44-5-12. Assessment at full and fair cash value. |
4 | (a) All real property subject to taxation shall be assessed at its full and fair cash value, as |
5 | of December 31 in the year of the last update or revaluation, or at a uniform percentage thereof, not |
6 | to exceed one hundred percent (100%), to be determined by the assessors in each town or city; |
7 | provided, that: |
8 | (1) Any residential property encumbered by a covenant recorded in the land records in |
9 | favor of a governmental unit or the Rhode Island housing and mortgage finance corporation |
10 | restricting either or both the rents that may be charged or the incomes of the occupants shall be |
11 | assessed and taxed in accordance with § 44-5-13.11; |
12 | (2) In assessing real estate that is classified as farmland, forest, or open space land in |
13 | accordance with chapter 27 of this title, the assessors shall consider no factors in determining the |
14 | full and fair cash value of the real estate other than those that relate to that use without regard to |
15 | neighborhood land use of a more intensive nature; |
16 | (3) Warwick. The city council of the city of Warwick is authorized to provide, by |
17 | ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick |
18 | who makes any improvements or additions on his or her principal place of residence in the amount |
19 | up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the city of |
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1 | Warwick, is exempt from reassessment of property taxes on the improvement or addition until the |
2 | next general citywide reevaluation of property values by the tax assessor. For the purposes of this |
3 | section, “residence” is defined as voting address. This exemption does not apply to any commercial |
4 | structure. The property owner shall supply all necessary plans to the building official for the |
5 | improvements or addition and shall pay all requisite building and other permitting fees as now are |
6 | required by law; and |
7 | (4) Central Falls. The city council of the city of Central Falls is authorized to provide, by |
8 | ordinance, that the owner of any dwelling of one to eight (8) units who makes any improvements |
9 | or additions to his or her residential or rental property in an amount not to exceed twenty-five |
10 | thousand dollars ($25,000), as determined by the tax assessor of the city of Central Falls, is exempt |
11 | from reassessment of property taxes on the improvement or addition until the next general citywide |
12 | reevaluation of property values by the tax assessor. The property owner shall supply all necessary |
13 | plans to the building official for the improvements or additions and shall pay all requisite building |
14 | and other permitting fees as are now required by law. |
15 | (5) Tangible property shall be assessed according to the asset classification table as defined |
16 | in § 44-5-12.1. Renewable energy resources shall only be taxed as tangible property under § 44-5- |
17 | 3(c) and the real property on which they are located shall not be reclassified, revalued, or reassessed |
18 | due to the presence of renewable energy resources, excepting only reclassification of farmland as |
19 | addressed in § 44-27-10.1. Subject to the aforementioned exception for farmland, all assessments |
20 | of real property with renewable energy resources thereon shall revert to the last assessed value |
21 | immediately prior to the renewable developer’s purchasing, leasing, securing an option to purchase |
22 | or lease, or otherwise acquiring any interest in the real property. However, notwithstanding the |
23 | above, but without any limitation on taxpayer rights under § 44-5-26, no municipality shall be liable |
24 | or otherwise responsible for any rebates, refunds, or any other reimbursements for taxes previously |
25 | collected for real property with renewable energy resources thereupon. |
26 | (6) Provided, however, that, for taxes levied after December 31, 2015, new construction on |
27 | development property is exempt from the assessment of taxes under this chapter at the full and fair |
28 | cash value of the improvements, as long as: |
29 | (i) An owner of development property files an affidavit claiming the exemption with the |
30 | local tax assessor by December 31 each year; and |
31 | (ii) The assessor shall then determine if the real property on which new construction is |
32 | located is development property. If the real property is development property, the assessor shall |
33 | exempt the new construction located on that development property from the collection of taxes on |
34 | improvements, until such time as the real property no longer qualifies as development property, as |
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1 | defined herein. |
2 | For the purposes of this section, “development property” means: (A) Real property on |
3 | which a single-family residential dwelling or residential condominium is situated and said single- |
4 | family residential dwelling or residential condominium unit is not occupied, has never been |
5 | occupied, is not under contract, and is on the market for sale; or (B) Improvements and/or |
6 | rehabilitation of single-family residential dwellings or residential condominiums that the owner of |
7 | such development property purchased out of a foreclosure sale, auction, or from a bank, and which |
8 | property is not occupied. Such property described in subsection (a)(6)(ii) of this section shall |
9 | continue to be taxed at the assessed value at the time of purchase until such time as such property |
10 | is sold or occupied and no longer qualifies as development property. As to residential |
11 | condominiums, this exemption shall not affect taxes on the common areas and facilities as set forth |
12 | in § 34-36-27. In no circumstance shall such designation as development property extend beyond |
13 | two (2) tax years and a qualification as a development property shall only apply to property that |
14 | applies for, or receives, construction permits after July 1, 2015. Further, the exemptions set forth |
15 | in this section shall not apply to land. |
16 | (7) In assessing real estate that is classified as a low- and moderate-income housing under |
17 | § 45-53-3, the assessors shall use the last current sales price of the property, within the last five (5) |
18 | years, as the assessed value. Any property that has not been sold within the last five (5) years may |
19 | be assessed based upon the newly calculated maximum sales price, as determined by the property's |
20 | monitoring agent, which shall constitute the new assessed value for the next five (5) years, or until |
21 | the next resale, whichever occurs first. |
22 | (b) Municipalities shall make available to every land owner whose property is taxed under |
23 | the provisions of this section a document that may be signed before a notary public containing |
24 | language to the effect that they are aware of the additional taxes imposed by the provisions of § 44- |
25 | 5-39 in the event that they use land classified as farm, forest, or open space land for another purpose. |
26 | (c) Pursuant to the provisions of § 44-3-29.1, all wholesale and retail inventory subject to |
27 | taxation is assessed at its full and fair cash value, or at a uniform percentage of its value, not to |
28 | exceed one hundred percent (100%), for fiscal year 1999, by the assessors in each town and city. |
29 | Once the fiscal year 1999 value of the inventory has been assessed, this value shall not increase. |
30 | The phase-out rate schedule established in § 44-3-29.1(d) applies to this fixed value in each year |
31 | of the phase out. |
32 | SECTION 2. This act shall take effect upon passage. |
33 | |
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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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1 | This act would limit real estate tax assessments for low- and moderate-income housing |
2 | units to the last current sales price within a five (5) year period. This act would also allow real |
3 | estate tax assessments for those properties with a last current sales price greater than five (5) years |
4 | to be calculated under an alternative assessment procedure. |
5 | This act would take effect upon passage. |
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