Permits municipalities to enact ordinances that provides them the authority to organize local tax amnesty events once every three (3) years.
Impact
The bill revises Section 44-5-88 of the General Laws regarding the levy and assessment of local taxes. By permitting such amnesty events, it is expected that municipalities can better manage their tax collection processes, providing relief to residents who may be struggling with overdue payments. The measure aims to enhance civic engagement and promote a more welcoming environment for residents facing financial difficulties, thus potentially increasing the likelihood of compliance with tax obligations.
Summary
House Bill 7379 aims to provide municipalities in Rhode Island the authority to organize local tax amnesty events once every three years. This legislation allows cities and towns to enact ordinances enabling tax waivers for overdue real estate payments, tangible tax payments, and motor vehicle tax payments. The design of the bill is to assist taxpayers by granting them a period during which penalties and interest can be waived, encouraging timely tax payments and potentially increasing local revenue flow.
Contention
While the bill has several potential benefits, there may be points of contention related to the policy's execution. Critics may argue that this approach could set a precedent for fiscal irresponsibility if repeated tax amnesty events are seen as a regular solution for tax delinquency, possibly undermining long-term fiscal accountability. Additionally, there could be concerns about the administrative burden placed on municipalities to organize these events and the criteria for who qualifies for tax relief.