Permits municipalities to enact ordinances that provides them the authority to organize local tax amnesty events once every three (3) years.
Impact
If passed, S2171 would amend existing laws concerning the levy and assessment of local taxes to incorporate a structured tax amnesty framework. This bill is designed to help municipal governments potentially increase their overall tax revenue by incentivizing taxpayers to clear overdue payments without the additional burden of penalties. By allowing these local tax amnesty periods, municipalities may also help ease the financial strain on taxpayers and improve their relationships with the community by showing a willingness to assist constituents facing financial hardship.
Summary
Bill S2171, introduced in the Rhode Island General Assembly, seeks to provide municipalities with the authority to organize local tax amnesty events once every three years. This legislation allows municipalities to create ordinances that would enable them to offer waivers for interest and penalties on overdue real estate payments, tangible tax payments, and motor vehicle tax payments during designated sixty-day periods. The implementation of such a program aims to facilitate tax compliance by providing taxpayers with financial relief from outstanding debts owed to local government entities.
Contention
Notably, while the bill has the potential to streamline tax collection at the municipal level and assist taxpayers, there may be concerns regarding the frequency and timing of the amnesty events. Some stakeholders might argue that offering tax amnesty too frequently could encourage delayed payments from taxpayers, creating a cycle of reliance on the amnesty provisions. Additionally, the financial impact on municipalities during years without tax amnesty may create a dependence where local governments could struggle to maintain revenue levels in between these events. Overall, while the intent is to promote tax compliance, the ramifications of such legislation require careful consideration.