The bill allows for cities and towns to adopt tax classification plans, which can be applied post-reevaluation. It places certain limits on how much the effective tax rates can vary across different classes of properties. For instance, the effective tax rate for any property class (excluding specific exceptions) cannot exceed by more than 50% the rate applicable to any other class. This creates a framework intended to support equitable taxation while giving local governments the authority to structure their tax policies in a way that reflects local economic conditions and needs.
Summary
House Bill 7992 pertains to the amendment of the taxation framework related to the levy and assessment of local taxes in the state of Rhode Island. This bill introduces several provisions that modify how cities and towns can implement tax classification plans following comprehensive revaluations of property. The primary goal of this legislative act is to establish more flexible tax rates for various classes of properties while maintaining certain restrictions to avoid excessive discrepancies between the rates applicable to different property classifications.
Contention
One notable point of contention within the discussions surrounding HB 7992 revolves around the concerns that towns could exploit the flexibility provided by the bill to impose significantly higher tax rates on certain classes of property, which could lead to inequitable tax burdens. Additionally, the bill allows towns like Glocester, Providence, and East Greenwich to set their own specific tax rules, raising concerns about inconsistencies in taxation across municipalities. Major stakeholders, including local government representatives and property owners, will need to navigate the implications of these changes, particularly regarding how changes to local tax policy could affect property values and economic competitiveness in the region.
Amends provisions relative to the levy and assessment of local taxes and would provide that the city of Providence may adopt a tax classification with unrestricted tax rates for certain classes of property.