Rhode Island 2023 Regular Session

Rhode Island House Bill H5448 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 5448
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7	7	LC001332
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
16	16	Introduced By: Representative Tina L. Spears
17	17	Date Introduced: February 08, 2023
18	18	Referred To: House Municipal Government & Housing
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21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 44-5-11.8 of the General Laws in Chapter 44-5 entitled "Levy and 1
23	23	Assessment of Local Taxes" is hereby amended to read as follows: 2
24	24	44-5-11.8. Tax classification. 3
25	25	(a) Upon the completion of any comprehensive revaluation or any update, in accordance 4
26	26	with § 44-5-11.6, any city or town may adopt a tax classification plan, by ordinance, with the 5
27	27	following limitations: 6
28	28	(1) The designated classes of property shall be limited to the classes as defined in 7
29	29	subsection (b) of this section. 8
30	30	(2) The effective tax rate applicable to any class, excluding class 4, shall not exceed by 9
31	31	fifty percent (50%) the rate applicable to any other class, except in the city of Providence and the 10
32	32	town of Glocester and the town of East Greenwich; however, in the year following a revaluation or 11
33	33	statistical revaluation or update, the city or town council of any municipality may, by ordinance, 12
34	34	adopt tax rates for the property class for all ratable tangible personal property no greater than twice 13
35	35	the rate applicable to any other class, provided that the municipality documents to, and receives 14
36	36	written approval from, the office of municipal affairs that the rate difference is necessary to ensure 15
37	37	that the estimated tax levy on the property class for all ratable tangible personal property is not 16
38	38	reduced from the prior year as a result of the revaluation or statistical revaluation. 17
39	39	(3) Any tax rate changes from one year to the next shall be applied such that the same 18
40	40	percentage rate change is applicable to all classes, excluding class 4, except in the city of 19
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43	43	LC001332 - Page 2 of 5
44	44	Providence and the town of Glocester and the town of East Greenwich. 1
45	45	(4) Notwithstanding subsections (a)(2) and (a)(3) of this section, the tax rates applicable to 2
46	46	wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are 3
47	47	governed by § 44-3-29.1. 4
48	48	(5) The tax rates applicable to motor vehicles within Class 4, as defined in subsection (b) 5
49	49	of this section, are governed by § 44-34.1-1. 6
50	50	(6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure 7
51	51	apply to the reporting of, and compliance with, these classification restrictions. 8
52	52	(b) Classes of property. 9
53	53	(1) Class 1: Residential real estate consisting of no more than five (5) dwelling units; land 10
54	54	classified as open space; and dwellings on leased land including mobile homes. In the city of 11
55	55	Providence, this class may also include residential properties containing partial commercial or 12
56	56	business uses and residential real estate of more than five (5) dwelling units. 13
57	57	(i) A homestead exemption provision is also authorized within this class; provided 14
58	58	however, that the actual, effective rate applicable to property qualifying for this exemption shall be 15
59	59	construed as the standard rate for this class against which the maximum rate applicable to another 16
60	60	class shall be determined, except in the town of Glocester and the city of Providence. 17
61	61	(ii) In lieu of a homestead exemption, any city or town may divide this class into non-18
62	62	owner and owner-occupied property and adopt separate tax rates in compliance with the within tax 19
63	63	rate restrictions. 20
64	64	(2) Class 2: Commercial and industrial real estate; residential properties containing partial 21
65	65	commercial or business uses; and residential real estate of more than five (5) dwelling units. In the 22
66	66	city of Providence, properties containing partial commercial or business uses and residential real 23
67	67	estate of more than five (5) dwelling units may be included in Class 1. 24
68	68	(3) Class 3: All ratable, tangible personal property. 25
69	69	(4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of 26
70	70	this title. 27
71	71	(c) The city council of the city of Providence and the town council of the town of Glocester 28
72	72	and the town council of the town of East Greenwich may, by ordinance, provide for, and adopt, a 29
73	73	tax rate on various classes as they shall deem appropriate. Provided, that the tax rate for Class 2 30
74	74	shall not be more than two (2) times the tax rate of Class 1 and the tax rate applicable to Class 3 31
75	75	shall not exceed the tax rate of Class 1 by more than two hundred percent (200%). Glocester shall 32
76	76	be able to establish homestead exemptions up to fifty percent (50%) of value and the calculation 33
77	77	provided in subsection (b)(1)(i) shall not be used in setting the differential tax rates. 34
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81	81	(d) Notwithstanding the provisions of subsection (a) of this section, the town council of the 1
82	82	town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with 2
83	83	the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or 3
84	84	after the assessment date of December 31, 2002. 4
85	85	(e) Notwithstanding the provisions of subsection (a) of this section, the town council of the 5
86	86	town of Little Compton may hereafter, by ordinance, adopt a tax classification plan in accordance 6
87	87	with the provisions of subsections (a) and (b) of this section and the provisions of § 44-5-79, to be 7
88	88	applicable to taxes assessed on or after the assessment date of December 31, 2004. 8
89	89	(f) Notwithstanding the provisions of subsection (a) of this section, the town council of the 9
90	90	town of Scituate may hereafter, by ordinance, change its tax assessment from fifty percent (50%) 10
91	91	of value to one hundred percent (100%) of value on residential and commercial/industrial/mixed-11
92	92	use property, while tangible property is assessed at one hundred percent (100%) of cost, less 12
93	93	depreciation; provided, however, the tax rate for Class 3 (tangible) property shall not exceed the 13
94	94	tax rate for Class 1 (residential) property by more than two hundred thirteen percent (213%). This 14
95	95	provision shall apply whether or not the fiscal year is also a revaluation year. 15
96	96	(g) Notwithstanding the provisions of subsections (a) and (b) of this section, the town 16
97	97	council of the town of Coventry may hereafter, by ordinance, adopt a tax classification plan 17
98	98	providing that Class 1, as set forth in subsection (b) “Classes of Property” of this section, may also 18
99	99	include residential properties containing commercial or business uses, such ordinance to be 19
100	100	applicable to taxes assessed on or after the assessment date of December 31, 2014. 20
101	101	(h) Notwithstanding the provisions of subsection (a) of this section, the town council of the 21
102	102	town of East Greenwich may hereafter, by ordinance, adopt a tax classification plan in accordance 22
103	103	with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on 23
104	104	or after the assessment date of December 31, 2018. Further, the East Greenwich town council may 24
105	105	adopt, repeal, or modify that tax classification plan for any tax year thereafter, notwithstanding the 25
106	106	provisions of subsection (a) of this section. 26
107	107	(i) Notwithstanding the provisions of subsection (a) of this section, the town council of the 27
108	108	town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with 28
109	109	the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or 29
110	110	after the assessment date of December 31, 2022. 30
111	111	(j) Notwithstanding the provisions of subsection (a) of this section, the town council of the 31
112	112	town of New Shoreham may hereafter, by ordinance, adopt a tax classification plan in accordance 32
113	113	with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on 33
114	114	or after the assessment date of December 31, 2023. 34
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118	118	SECTION 2. This act shall take effect upon passage. 1
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120	120	LC001332
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125	125	EXPLANATION
126	126	BY THE LEGISLATIVE COUNCIL
127	127	OF
128	128	A N A C T
129	129	RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
130	130	***
131	131	This act would allow the town council of New Shoreham to adopt a tax classification plan 1
132	132	in accordance with the provisions of this section, to be applicable to taxes on or after the assessment 2
133	133	date of December 31, 2023. 3
134	134	This act would take effect upon passage. 4
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136	136	LC001332
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