Rhode Island Senate Bill S3027

Rhode Island 2022 Regular Session

• Introduced: 6/17/22
• Refer: 6/17/22

Caption

Levy And Assessment Of Local Taxes

Impact

The impact of S3027 on state law is significant, as it provides a clear framework for how renewable energy resources are to be treated in terms of taxation. By establishing that these resources are to be assessed individually as tangible property, the bill seeks to encourage investment in renewable energy while protecting agricultural lands. It ensures that land used for renewable energy systems remains eligible for agricultural classification as long as it meets specific criteria. This dual designation could potentially stimulate both agricultural and renewable energy production, promoting sustainability.

Summary

S3027, introduced by Senator Louis P. DiPalma, amends Rhode Island's taxation laws particularly regarding the levy and assessment of local taxes. The bill aims to ensure that renewable energy resources are treated as tangible property for tax purposes. It mandates that cities and towns are only allowed to assess taxes on the real property where these renewable energy resources are located and maintains that the real estate itself should not be reclassified, revalued, or reassessed due to the presence of renewable energy installations. This act links renewable energy to agricultural land use, providing clarity on how such properties are to be assessed for taxation.

Contention

Notably, S3027 may encounter points of contention among different stakeholders. Proponents argue that the bill facilitates growth within the renewable energy sector and aligns with environmental goals. However, there may be concerns from local governments about the loss of tax revenue that could result from exempting vast areas of land used for renewable energy projects from reassessment. Additionally, the bill's implications for local agricultural policies and taxes could create friction between agricultural and energy interests, particularly in areas where land use is contested.