Defines Class 5 property to include the commercial portion of mixed use properties and fix the tax rate for Class 3 property at thirty-eight dollars and 33 cents ($38.33) per one thousand dollars ($1,000).
Impact
The changes brought forth by S0675 are intended to affect how property taxes are levied and assessed by local governments, particularly in the city of Central Falls. By defining the commercial portions of mixed-use properties within its classifications, the bill seeks to streamline the tax assessment process, providing local officials with the necessary framework to assess property taxes more effectively. This could potentially lead to improved revenue collection for local municipalities while clarifying the responsibilities for property owners regarding taxation.
Summary
Bill S0675 aims to amend the existing laws related to the levy and assessment of local taxes in Rhode Island, specifically targeting the classification of property for tax purposes. The proposed legislation introduces a new property classification, termed 'Class 5', which encompasses the commercial portion of mixed-use properties and adjusts the tax rate for Class 3 properties to a fixed rate of $38.33 per $1,000. This modification seeks to provide clearer tax guidelines for mixed-use developments and ensure a consistent tax assessment for commercial properties within these classifications.
Sentiment
The reception of Bill S0675 appears to be largely supportive among those who advocate for clear tax classifications that reflect modern property uses, particularly with the increasing prevalence of mixed-use developments. Proponents believe that the bill simplifies tax assessment processes, thereby enhancing economic development. However, minor concerns raised point towards the implications this could have on property taxation equity and the potential for increased rates on mixed-use properties that may include affordable housing components.
Contention
Notable points of contention surrounding S0675 may arise from the implications of the new Class 5 designation. Stakeholders argue that the way mixed-use properties are taxed could create disparities or unintended financial burdens for certain property owners, particularly if evaluations do not adequately reflect the economic realities of these properties. As the bill moves forward, discussions may focus on ensuring that tax assessments remain fair and do not disproportionately affect any segment of property owners, especially those in vulnerable economic positions.
Includes non-owner-occupied residential properties used for short-term rentals for tourist or transient use to be assessed as Class 2 properties on or after the assessment date of December 31, 2024.
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.
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.
Provides that only residential properties and new or rehabilitated residential affordable housing units would be subject to the tax under § 44-5-13.1 relating to taxation of low-income housing.
Provides that only residential properties and new or rehabilitated residential affordable housing units would be subject to the tax under § 44-5-13.1 relating to taxation of low-income housing.
Increases the amount of exemption from sales tax for clothing including footwear from two hundred fifty dollars ($250) to five hundred dollars ($500). Effective July 1, 2023.
Provides that the city of Warwick, no separate class or zoning district would be assigned/designated based solely on a scenic view, and no property in a particular class or zoning district would be assessed at an increased rate from other properties.