Rhode Island House Bill H8176

Rhode Island 2024 Regular Session

• Introduced: 4/12/24
• Refer: 4/12/24
• Report Pass: 5/9/24
• Engrossed: 5/14/24
• Refer: 5/17/24
• Report Pass: 6/11/24
• Enrolled: 6/13/24
• Passed: 6/28/24

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

The implications of this bill are significant as it allows for a more equitable taxation system that can benefit both the municipality and property owners. By prorating taxes from the time a property is first used, municipalities can potentially increase their revenue in a timely manner, reflecting current market conditions and occupancy. This could lead to better funding for local services and infrastructure improvements financed through these taxes.

Summary

House Bill 8176 introduces changes to the taxation and assessment of new real estate construction in the city of Woonsocket, Rhode Island. Specifically, the bill mandates that for properties that undergo new construction, municipal taxes will be assessed from the date a certificate of use and occupancy is issued or from when the property is first utilized for its intended purpose, whichever occurs first. This legislative change aims to streamline the taxation process for newly constructed properties, allowing local assessors to adjust taxes based on actual occupancy.

Contention

However, the bill has raised questions and concerns regarding the timing and methodology of tax assessments. Stakeholders, including property developers and local taxpayers, may express reservations about suddenly facing tax liabilities upon occupancy that might not have been anticipated. Furthermore, there is a possibility that some individuals could challenge the additional assessments, seeking clarity on how increments are determined, potentially resulting in appeals processes that could complicate the tax collection framework.