Introduced By: Senators Sosnowski and McDonald
Date Introduced : February 11, 1998
Referred To: Committee on Senate Corporations
It is enacted by the General Assembly as follows:
SECTION 1. The electors of the Town of South Kingstown are hereby authorized to levy a fee, not to exceed three percent (3%) of that portion of the total purchase price which exceeds an amount of between $100,000 and $150,000 as determined by the electors, upon real property transfers within said Town in accordance with Section 2 of this act, where a 100 percent interest is conveyed, but in sales in which less than a 100 percent interest is conveyed, said exception value shall be reduced by the same percentage proportion as the actual interest conveyed except that, when in accordance with this act, a real property transfer of a 100 percent interest occurs within twenty-four (24) months of payment of a fair share development fee collected for open space and recreation purposes, the fee under this Section shall be applied only to that portion of the total purchase price which exceeds $250,000 subject to the provisions stated above applying to transfers of less than a 100 percent interest. The amount of said fee shall be adopted at an annual or special financial town meeting and shall become effective on the first day of the next month which occurs at least thirty (30) days after the vote adopting the fee. The fee, once adopted, shall remain in effect unless the electors at an annual or special financial town meeting amend the rate of or repeal said fee. Said fee shall not be changed or repealed without notice of the proposed change or repeal having been placed on the warrant for a financial town meeting.
SECTION 2. Whenever there is a transfer of real property situated in the Town of South Kingstown on which there is imposed a tax under section 44-25-1 of the general laws, there is hereby imposed, in addition to said tax, a fee not to exceed the amount of three percent (3%) of the amount of the total purchase price which exceeds an amount no less than $100,000 and no more than $150,000 where a 100 percent interest is conveyed, or which exceeds $250,000 where a 100 percent interest is conveyed pursuant to the terms set forth in Section 1. The payment of the fee hereby imposed shall be made to the Town as set forth in Section 5.
The payment of the tax hereby imposed shall be evidenced by the affixing of documentary stamps, provided by the South Kingstown Town Clerk's office, to every original instrument presented for recording in the same manner as set forth in section 44-25-3 of the general laws. Failure to comply with this requirement shall not affect the validity of any instrument. Said fee shall be the obligation of the buyer of real property. Any agreement between the buyer and the seller or any other person with reference to the allocation of the responsibility for bearing such fee shall not affect such liability of the buyer.
SECTION 3. The following transfers of real property interests shall be exempt from the fee established by Section 2.
a. Those exemptions defined under section 44-25-2 of the general laws.
b. Undeveloped land which is dedicated in perpetuity for open space preservation and conservation purposes in its undisturbed natural state.
SECTION 4. A buyer who fails to pay all or any portion of the fee established by Section 2 on or before the time when the same is due shall be liable for the following additional payments in addition to said fee:
a. Interest: The buyer shall pay interest on the unpaid amount of the fee to be calculated from the time of transfer at a rate equal to twelve (12) percent per annum.
b. Penalties: Any person who, without fraud or willful intent to defeat or evade a fee imposed by this act, fails to pay all or a portion of the fee within thirty (30) days after the time of transfer, shall pay a penalty equal to five percent (5%) of the outstanding fee as determined by the Town for each month or portion thereof thereafter that the fee is not paid in full; provided, however, that in no event shall the amount of any penalty imposed hereunder exceed twenty five percent (25%) of the unpaid fee due at the time of transfer. Whenever the Town determines that all or a portion of a fee due under this act was unpaid due to fraud with intent to defeat or evade the fee imposed by this action, a penalty equal to the amount of said fee as determined by the Town shall be paid by the buyer in addition to said fee.
SECTION 5. All funds collected by virtue of said fee shall be deposited in a dedicated capital reserve fund administered by the Town Council. The Town Council shall have the authority to use funds held in this dedicated capital reserve fund to acquire, hold and manage real property and interests therein situated in the Town of South Kingstown consisting of open, agricultural, or littoral property, including existing and future well fields and aquifer recharge areas, fresh and saltwater marshes and adjoining uplands, barrier beaches, wildlife habitats, land providing access to or views of the ocean, harbors and ponds, land for bicycling and hiking paths and for future passive recreational use, and land for agricultural use.
SECTION 6. If any of the provisions of this act or it any rule, regulation or order thereunder or the application of such provision to any person or circumstances shall be held invalid, the remainder of this act and the application of this act or such rule, regulation or order to any person or circumstances, other than those as to which it is held invalid, shall not be affected thereby.
SECTION 7. This section shall take effect upon passage of the act. The remainder of this act shall take effect upon its approval by a majority of those voting to approve the act at any annual or special financial town meeting of the Town of South Kingstown.
