2025 -- S 0675

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LC002277

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

     Introduced By: Senator Jonathon Acosta

     Date Introduced: March 07, 2025

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 44-5-20.02 of the General Laws in Chapter 44-5 entitled "Levy and

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

     44-5-20.02. Central Falls — Property tax classification — List of ratable property.

     (a) Notwithstanding any provision within § 44-5-11.8 to the contrary, on or before June 1,

except in 1990, in which case the time is thirty (30) days after June 1, 1990, the assessor in the city

of Central Falls, after certification for classification, shall submit to the director of revenue a list

containing the true, full, and fair cash value of the ratable estate and motor vehicles and shall

classify and provide a tax rate for the property according to the following use:

     (1) “Class 1” includes residential property which is owner-occupied dwellings of no more

than five (5) units and which is property used or held for human habitation, including rooming

houses and mobile homes with facilities designed and used for living, sleeping, cooking, and eating

on a non-transient basis. Eligibility for the owner-occupied tax classification shall be determined

by compliance with § 44-3-34 and relevant city ordinances. This property includes accessory land,

buildings, or improvements incidental to the habitation and used exclusively by the residents of the

property or their guests. This property does not include a hotel, motel, commercial, or industrial

property.

     (2) “Class 2” includes residential property which is owner-occupied dwellings of more than

five (5) units and non-owner-occupied dwellings, including properties for mixed use as residential

and commercial properties, and which is property used or held for human habitation, including

rooming houses and mobile homes with facilities designed and used for living, sleeping, cooking,

and eating on a non-transient basis. This property includes accessory land, buildings, or

improvements incidental to the habitation and used exclusively by the residents of the property or

their guests. This property includes open space including “farmland,” “forestland,” and “open space

land” as defined in accordance with § 44-27-2. This property does not include a hotel, motel,

commercial, or industrial property.

     (3) “Class 3” includes personal property, previously subject to tax, and includes all goods,

chattels, and effects, wherever they may be, except those that are exempt from taxation by the laws

of the United States or of this state.

     (4) “Class 4” includes every vehicle and trailer registered under chapter 3 of title 31.

     (5) “Class 5” includes property used commercially, including the commercial portion of

properties for mixed use as residential and commercial properties or for industrial manufacturing.

     (b) The city of Central Falls may, by ordinance adopted by the city council, provide for tax

classification of property and tax rates in the city of Central Falls based on the five (5) classes

outlined in subsection (a) of this section.

     (c) The effective tax rate for Class 2 shall not exceed by two (2) times, the effective tax

rate for Class 1; the effective tax rate for Class 5 shall not exceed by three (3) times, the effective

tax rate for Class 1; and the effective tax rate for Class 3 shall not exceed by four (4) times, the

effective tax rate for Class 1 remain at the fixed rate of thirty-eight dollars and thirty-three cents

($38.33) per one thousand dollars ($1,000) that was present at the passage of § 44-5-12.2.

     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 define Class 5 property to include the commercial portion of mixed use

properties and fix the tax rate for Class 3 property at thirty-eight dollars and thirty-three cents

($38.33) per one thousand dollars ($1,000).

     This act would take effect upon passage.

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