Introduced By: Representatives Henseler, Carter and Benson
Date Introduced : June 1, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Section 1 and subsection (b) of section 4 of chapter 26 of the public laws of 1964 entitled "An Act Enabling the Town Council of the Town of North Kingstown to Exempt Certain Property from Taxation," as amended, are amended to read as follows:
Section 1. The town council of North Kingstown may, by ordinance grant to every person, a citizen and resident of the town of North Kingstown of the age of sixty-five (65) or more years and residing in the town of North Kingstown in a dwelling house owned by him which is a constituent part of his real property, on proper claim being made therefor a tax exemption.
The town council of North Kingstown may, from time to time, by ordinance, make such rules and regulations as they deem necessary and appropriate to promote the purposes of this act and, in addition, may, from time to time, by ordinance, reduce the amounts of all or some of the exemptions herein after provided in subsection (a) hereof when they determine that such a reduction is in the financial best interests of the town.
(a) The schedule of exemptions provided, from time to time, shall be as follows:
(1) Taxpayers having an annual income of up to two hundred percent (200%) of the appropriate one (1) or two (2) person poverty income level determined and published by the United States Department of Commerce, Census Bureau, Poverty Branch shall have an exemption of one hundred twenty five thousand dollars ($125,000.00) of the assessed valuation.
(2) Taxpayers having an annual income of up to two hundred fifty percent (250%) of the appropriate one (1) or two (2) person poverty income level determined and published by the United States Department of Commerce, Census Bureau, Poverty Branch shall have an exemption of one hundred thousand dollars ($100,000.00) of the assessed valuation.
(3) Taxpayers having an annual income of up to three hundred percent (300%) of the appropriate one (1) or two (2) person poverty income level determined and published by the United States Department of Commerce, Census Bureau, Poverty Branch shall have an exemption of seventy five thousand dollars ($75,000.00) of the assessed valuation.
(4) The exemptions so provided shall be in addition to any other exemption or exemptions to which the persons shall be entitled. However, except as provided for in subsection (a)(5) below, in no case shall the total tax excused (or saved) as a consequence of this act exceed a maximum of five thousand dollars ($5,000.00) adjusted for each tax year subsequent to 1999 to reflect changes in the cost of living. Starting with the 1999 social security administration cost of living allowance (COLA) data, the compound percentage amount of COLA change in the social security retirement benefit shall be used for calculating these annual adjustments. The intent of this provision is to stabilize the maximum benefits available under this act at five thousand dollars ($5,000.00) in constant 1999 dollars.
(5) An additional ten (10) percent reduction in the total tax bill will be given to each qualified taxpayer seventy-five (75) years of age or older.
(6) The provisions of this act shall not reduce the dollar value of property tax savings, which tax resulted from claims for tax exempt status of real estate owned and occupied by persons of sixty-five (65) years of age and over approved by the tax assessor tax year 1983. This exception shall expire:
(a) If the taxpayer(s) fail to meet the full requirements set forth in the Rules and Regulations for Exemption from Property Taxes to Persons 65 or More Years of Age;
(b) Upon death of the current eligible taxpayer, except in the event the spouse of the current taxpayer survives and is not remarried;
(c) Upon abandonment of domicile;
(d) Upon transfer of ownership of the property through sale or other disposition.
The provisions of this clause shall cease to be effective for each claimant in the tax year during which the dollar value of the exemption defined in the Rules and Regulations for Exemptions from Property Taxes to Persons sixty five (65) or More Years of Age, below, equals or exceeds the property tax abatement granted.
(b) For the purposes of this act the income of a taxpayer shall be deemed to include the total income of his or her spouse and all other individuals residing in the taxpayer's dwelling for more than fifty percent (50%) of the calendar year and only one such exemption shall be allowed to co-tenants, joint tenants, and tenants by the entirety even though all or more than one of them are sixty five (65) or more years of age. In addition to the requirement of domicile within the town of North Kingstown at the time of making application, the ordinance may require that an applicant for this exemption must have been a resident of said town for a period up to but not in excess of twenty (20) years ending with the date of assessment for the year for which exemption is claimed; and further, the ordinance may require that an applicant for this exemption must have owned and had title to his or her dwelling house during any period of residency required by the ordinance; provided, however, that such exemption shall not be allowed in favor of any person unless he or she shall have presented to the assessor a true and exact account of his or her ratable estate as provided for in title 45, chapter 5, sections 15 and 16 of the general laws of 1956, as amended, for the year for which exemption is claimed, together with due evidence that he or she is so entitled to such exemption.
Sec. 4. Definitions, when used in this act:
(a) "Income" in section 1 hereof means all funds received by an individual and/or his or her spouse from whatever source derived including, but not limited to, realized capital gains, gifts, and, in their entirety, pension, annuity, retirement and social security benefits. Income shall be determined on the basis of the calendar year ending with date of assessment for the year for which exemption is claimed and each calendar year thereafter.
(b) "Resident" means one legally domiciled within the town of North Kingstown during the year for which the exemption is claimed (the year following the assessment). Mere seasonal or temporary residence within the town of whatever duration shall not constitute domicile within the town for the purposes of this act.
Absence from this town for a period of twelve (12) months shall be prima facie evidence of abandonment of domicile in this town. The burden of establishing legal domicile within the town shall be upon the applicant.
(c) "Due evidence" in section 1 hereof: No exemption from taxation on the valuation of real property, as herein provided, shall be allowed except upon written application therefor, which application shall be on a form prescribed by the assessor. The assessor may at any time inquire into the right of a claimant to the continuance of an exemption hereunder, and for that purpose he may require the filing of a new application or the submission of such proof as he shall deem necessary to determine the right of the claimant to continuance of such exemption.
SECTION 2. Section 6 of said chapter 26 of the public laws of 1964 is amended to read as follows:
Sec. 6. The question of the acceptance or rejection of this act shall be submitted to the qualified electors of said town entitled to vote upon a proposition to impose a tax or for the expenditure of money at any special or regular election to be held after the passage of this act, and no other action shall be taken under the authority of this act unless a majority of said electors voting on said question vote to accept this act.
The town clerk of the town of North Kingstown shall forthwith after said election certify to the secretary of state, the result of this vote upon the question submitted.
Following the approval of this question in 1999 or any subsequent year, any ordinance passed by the town council of North Kingstown to provide tax relief for the elderly citizens of North Kingstown, in accordance with this act, shall become effective upon passage.
SECTION 3 This section and section 2 of this act shall take effect upon passage and section 1 shall take effect if and when the electors of the town of North Kingstown qualified to vote upon a proposition to impose a tax or for the expenditure of money vote to accept this act.
