Rhode Island Senate Bill S2582

Rhode Island 2024 Regular Session

• Introduced: 3/1/24
• Refer: 3/1/24
• Report Pass: 6/10/24
• Engrossed: 6/12/24
• Enrolled: 6/13/24
• Passed: 6/29/24

Caption

Authorizes reassessment of taxes on new construction from the date of issuance of the certificate of occupancy or the date it is first used, whichever is the earlier.

Impact

If enacted, S2582 will significantly alter the statutes concerning property tax assessments in Woonsocket. It mandates that municipal tax assessments for new constructions be calculated to reflect their addition to the tax base as soon as they are operational, thereby enabling local authorities to begin tax collection immediately upon the completion of new housing or facilities. This adjustment could potentially enhance municipal revenues by ensuring that newly available properties are contributing to the tax base sooner rather than later, thus affecting local government budgeting and services.

Summary

S2582 proposes to amend local tax law in Rhode Island specifically for the city of Woonsocket. The bill allows for the reassessment of municipal taxes on newly constructed real estate on a prorated basis, starting from the date a certificate of occupancy is issued or the date the property is first used for its intended purpose. This change aims to simplify the taxation process for new constructions and ensure that taxes are applied more fairly based on the actual use of the property. The legislation is seen as a method to help local governments better manage their tax revenues and respond to developments in real estate more dynamically.

Contention

Although the bill has the potential for positive economic implications by potentially increasing local tax revenues, there might be concerns from property owners regarding the fairness of newly assessed taxes on properties that have just been completed. Stakeholders such as builders and developers may worry about the timing and amount of these assessments affecting housing affordability and overall development costs. As with many tax-related legislation, there could also be debates surrounding the balance of revenue generation versus the financial burden on residents.