| 30 | | - | promote economic development, a city, town, or fire district shall provide each tangible property 8 |
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| 31 | | - | taxpayer on the aggregate amount of all ratable, tangible personal property not otherwise exempt 9 |
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| 32 | | - | from taxation an exemption from taxation of fifty thousand dollars ($50,000) applicable to the 10 |
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| 33 | | - | assessment date of December 31, 2023 and for each assessment date thereafter. All ratable, 11 |
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| 34 | | - | tangible, personal property valued above fifty thousand dollars ($50,000) remains subject to 12 |
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| 35 | | - | taxation. 13 |
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| 36 | | - | (b) Individual personal exemptions granted to tangible property taxpayers in any city, town, 14 |
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| 37 | | - | or fire district at the time of the effective date of this chapter shall be applied to assessed values 15 |
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| 38 | | - | prior to applying the statewide exemption provided in this section in order that any lost revenue to 16 |
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| 39 | | - | be reimbursed pursuant to this chapter for each respective city, town, or fire district shall not include 17 |
|---|
| 40 | | - | revenue loss resulting from these individual personal exemptions. 18 |
|---|
| 41 | | - | (c) Exemptions existing and uniformly applied to all tangible property taxpayers in any 19 |
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| 30 | + | promote economic development, all ratable, tangible personal property not otherwise exempt from 8 |
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| 31 | + | taxation shall be exempt from taxation up to and including one hundred thousand dollars ($100,000) 9 |
|---|
| 32 | + | for the property tax year ending on December 31, 2024. 10 |
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| 33 | + | (b) Individual personal exemptions granted to tangible property taxpayers in any city, town, 11 |
|---|
| 34 | + | or fire district at the time of the effective date of this chapter shall be applied to assessed values 12 |
|---|
| 35 | + | prior to applying the statewide exemption provided in this section in order that any lost revenue to 13 |
|---|
| 36 | + | be reimbursed pursuant to this section for each respective city, town, or fire district shall not include 14 |
|---|
| 37 | + | revenue loss resulting from these individual personal exemptions. 15 |
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| 38 | + | (c) Exemptions existing and uniformly applied to all tangible property taxpayers in any 16 |
|---|
| 39 | + | city, town, or fire district at the time of the effective date of this chapter shall be disregarded in 17 |
|---|
| 40 | + | order that any lost revenue to be reimbursed pursuant to this section for each respective city, town, 18 |
|---|
| 41 | + | or fire district shall include revenue loss resulting from such pre-existing uniform exemptions. 19 |
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| 44 | | - | LC002832/SUB A - Page 2 of 5 |
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| 45 | | - | city, town, or fire district at the time of the effective date of this chapter shall be disregarded in 1 |
|---|
| 46 | | - | order that any lost revenue to be reimbursed pursuant to this chapter for each respective city, town, 2 |
|---|
| 47 | | - | or fire district shall include revenue loss resulting from such pre-existing uniform exemptions. 3 |
|---|
| 48 | | - | 44-5.3-2. Reimbursement of lost tax revenue. 4 |
|---|
| 49 | | - | (a) Beginning in fiscal year 2025 and for each fiscal year thereafter, cities, towns, and fire 5 |
|---|
| 50 | | - | districts shall receive reimbursements, as set forth in this section, from state general revenues for 6 |
|---|
| 51 | | - | lost tax revenues due to the reduction of the tangible property tax resulting from the statewide 7 |
|---|
| 52 | | - | exemption set forth in § 44-5.3-1. 8 |
|---|
| 53 | | - | (b) Beginning in fiscal year 2025, and for each fiscal year thereafter, cities, towns, and fire 9 |
|---|
| 54 | | - | districts shall receive a reimbursement equal to the tangible property levy for the assessment date 10 |
|---|
| 55 | | - | of December 31, 2022, minus the tangible personal property levy for the assessment date of 11 |
|---|
| 56 | | - | December 31, 2023. 12 |
|---|
| 57 | | - | (c) Reimbursements shall be distributed in full to cities, towns, and fire districts on 13 |
|---|
| 58 | | - | September 30, 2024 and every September 30 thereafter; provided, however, that reimbursement 14 |
|---|
| 59 | | - | shall not be provided to any city, town, or fire district in any year in which it has failed to provide 15 |
|---|
| 60 | | - | to the division of municipal finance its certified tax roll in accordance with § 44-5-22 or any other 16 |
|---|
| 61 | | - | information required by the division of municipal finance to calculate the reimbursement amount. 17 |
|---|
| 62 | | - | 44-5.3-3. Tangible property tax rate cap. 18 |
|---|
| 63 | | - | (a) Notwithstanding any other provision of law to the contrary, the tax rate for the class of 19 |
|---|
| 64 | | - | property that includes tangible personal property for any city, town, or fire district shall be capped 20 |
|---|
| 65 | | - | and shall not exceed thereafter the tax rate in effect for the assessment date of December 31, 2022. 21 |
|---|
| 66 | | - | (b) Notwithstanding any other provision of law to the contrary, for assessment dates on and 22 |
|---|
| 67 | | - | after December 31, 2023, any city, town, or fire district shall be permitted to tax all other classes 23 |
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| 68 | | - | of property, or where no classification has been enacted all other types of property, at a different 24 |
|---|
| 69 | | - | tax rate than the tax rate for tangible personal property required by subsection (a) of this section. 25 |
|---|
| 70 | | - | 44-5.3-4. Removal of certain limitations and requirements. 26 |
|---|
| 71 | | - | For assessment dates on or after December 31, 2023, tangible tax rates shall be disregarded 27 |
|---|
| 72 | | - | for purposes of compliance with limitations on the extent to which the effective tax rate of one class 28 |
|---|
| 73 | | - | of property may exceed that of another, or requirements that the same percentage rate change be 29 |
|---|
| 74 | | - | applied across property classes from one year to the next, under § 44-5-11.8 or any other similar 30 |
|---|
| 75 | | - | statutory provision applicable to a city, town, or fire district. 31 |
|---|
| 76 | | - | 44-5.3-5. Application. 32 |
|---|
| 77 | | - | The statewide exemption set forth in this chapter shall not apply to: 33 |
|---|
| 78 | | - | (1) Public service corporation tangible property subject to taxation pursuant to § 44-13-13; 34 |
|---|
| 44 | + | LC002832 - Page 2 of 4 |
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| 45 | + | 44-5.3-2. Reimbursement of lost tax revenue. 1 |
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| 46 | + | (a) Beginning in fiscal year 2024-2025 and for each fiscal year thereafter, cities, towns, 2 |
|---|
| 47 | + | and fire districts shall receive reimbursements, as set forth in this section, from state general 3 |
|---|
| 48 | + | revenues for lost tax revenues due to the reduction of the tangible property tax resulting from the 4 |
|---|
| 49 | + | statewide exemption set forth in § 44-5.3-1. 5 |
|---|
| 50 | + | (b) Beginning in calendar year 2023, on or before August 15 of each year, each city, town, 6 |
|---|
| 51 | + | and fire district shall report to the department of revenue, as part of the submission of the certified 7 |
|---|
| 52 | + | tax levy pursuant to § 44-5-22, tangible property levy information sufficient to calculate 8 |
|---|
| 53 | + | reimbursements as set forth in this section, for the most recent tax roll based on assessed values as 9 |
|---|
| 54 | + | of December 31 of the previous year. 10 |
|---|
| 55 | + | (c) Reimbursements for cities, towns, and fire districts for each fiscal year shall be based 11 |
|---|
| 56 | + | on tangible property levy information for the prior fiscal year submitted pursuant to this section. 12 |
|---|
| 57 | + | Reimbursements shall be distributed in full to cities, towns, and fire districts no later than 13 |
|---|
| 58 | + | September 30 of the respective fiscal year to which the reimbursement applies. 14 |
|---|
| 59 | + | 44-5.3-3. Establishment of reimbursement fund. 15 |
|---|
| 60 | + | There is hereby established a restricted receipt account within the general fund of the state, 16 |
|---|
| 61 | + | to be known as the statewide tangible property tax exemption reimbursement fund. Funds from this 17 |
|---|
| 62 | + | account shall be administered by the director of the department of revenue and shall be for the sole 18 |
|---|
| 63 | + | purpose of reimbursing cities, towns, and fire districts pursuant to this chapter. 19 |
|---|
| 64 | + | 44-5.3-4. Tangible property tax rate cap. 20 |
|---|
| 65 | + | (a) Notwithstanding any other provision of law to the contrary, the tax rate for the class of 21 |
|---|
| 66 | + | property that includes tangible personal property for any city, town, or fire district shall be capped 22 |
|---|
| 67 | + | and shall not exceed thereafter the tax rate in effect for the property tax year ending on December 23 |
|---|
| 68 | + | 31, 2022. 24 |
|---|
| 69 | + | (b) The tax rate limitation set forth in this section shall not apply to any city, town, or fire 25 |
|---|
| 70 | + | district that utilizes a uniform tax rate for all classes of property, exclusive of class 4 property 26 |
|---|
| 71 | + | (motor vehicles and trailers). 27 |
|---|
| 72 | + | 44-5.3-5. Removal of certain limitations and requirements. 28 |
|---|
| 73 | + | Beginning in fiscal year 2024-2025, tangible tax rates shall be disregarded for purposes of 29 |
|---|
| 74 | + | compliance with limitations on the extent to which the effective tax rate of one class of property 30 |
|---|
| 75 | + | may exceed that of another, or requirements that the same percentage rate change be applied across 31 |
|---|
| 76 | + | property classes from one year to the next, under § 44-5-11.8 or any other similar statutory 32 |
|---|
| 77 | + | provision applicable to a city, town, or fire district. 33 |
|---|
| 78 | + | 44-5.3-6. Application. 34 |
|---|
| 81 | | - | LC002832/SUB A - Page 3 of 5 |
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| 82 | | - | and 1 |
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| 83 | | - | (2) Renewable energy resources and associated equipment subject to taxation pursuant to 2 |
|---|
| 84 | | - | § 44-5-3(c). 3 |
|---|
| 85 | | - | SECTION 2. Section 45-13-14 of the General Laws in Chapter 45-13 entitled "State Aid" 4 |
|---|
| 86 | | - | is hereby amended to read as follows: 5 |
|---|
| 87 | | - | 45-13-14. Adjustments to tax levy, assessed value, and full value when computing state 6 |
|---|
| 88 | | - | aid. 7 |
|---|
| 89 | | - | (a) Whenever the director of revenue computes the relative wealth of municipalities for the 8 |
|---|
| 90 | | - | purpose of distributing state aid in accordance with title 16 and the provisions of § 45-13-12, he or 9 |
|---|
| 91 | | - | she shall base it on the full value of all property except: 10 |
|---|
| 92 | | - | (1) That exempted from taxation by acts of the general assembly and reimbursed under § 11 |
|---|
| 93 | | - | 45-13-5.1, which shall have its value calculated as if the payment in lieu of tax revenues received 12 |
|---|
| 94 | | - | pursuant to § 45-13-5.1, has resulted from a tax levy; 13 |
|---|
| 95 | | - | (2) That whose tax levy or assessed value is based on a tax treaty agreement authorized by 14 |
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| 96 | | - | a special public law or by reason of agreements between a municipality and the economic 15 |
|---|
| 97 | | - | development corporation in accordance with § 42-64-20 prior to May 15, 2005, which shall not 16 |
|---|
| 98 | | - | have its value included; 17 |
|---|
| 99 | | - | (3) That whose tax levy or assessed value is based on tax treaty agreements or tax 18 |
|---|
| 100 | | - | stabilization agreements in force prior to May 15, 2005, which shall not have its value included; 19 |
|---|
| 101 | | - | (4) That which is subject to a payment in lieu of tax agreement in force prior to May 15, 20 |
|---|
| 102 | | - | 2005; 21 |
|---|
| 103 | | - | (5) Any other property exempt from taxation under state law; 22 |
|---|
| 104 | | - | (6) Any property subject to chapter 27 of title 44, taxation of Farm, Forest, and Open Space 23 |
|---|
| 105 | | - | Land; or 24 |
|---|
| 106 | | - | (7) Any property exempt from taxation, in whole or in part, under the provisions of 25 |
|---|
| 107 | | - | subsections (a)(51), (a)(66), or (c) of § 44-3-3, § 44-3-47, § 44-3-65, § 44-5.3-1, or any other 26 |
|---|
| 108 | | - | provision of law that enables a city, town, or fire district to establish a tangible personal property 27 |
|---|
| 109 | | - | exemption, which shall have its value calculated as the full value of the property minus the 28 |
|---|
| 110 | | - | exemption amount. 29 |
|---|
| 111 | | - | (b) The tax levy of each municipality and fire district shall be adjusted for any real estate 30 |
|---|
| 112 | | - | and personal property exempt from taxation by act of the general assembly by the amount of 31 |
|---|
| 113 | | - | payment in lieu of property tax revenue anticipated to be received pursuant to § 45-13-5.1 relating 32 |
|---|
| 114 | | - | to property tax from certain exempt private and state properties, and for any property subject to any 33 |
|---|
| 115 | | - | payment in lieu of tax agreements, any tax treaty agreements or tax stabilization agreements in 34 |
|---|
| 116 | | - | |
|---|
| 117 | | - | |
|---|
| 118 | | - | LC002832/SUB A - Page 4 of 5 |
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| 119 | | - | force after May 15, 2005, by the amount of the payment in lieu of taxes pursuant to such 1 |
|---|
| 120 | | - | agreements. 2 |
|---|
| 121 | | - | (c) Fire district tax levies within a city or town shall be included as part of the total levy 3 |
|---|
| 122 | | - | attributable to that city or town. 4 |
|---|
| 123 | | - | (d) The changes as required by subsections (a) through (c) of this section shall be 5 |
|---|
| 124 | | - | incorporated into the computation of entitlements effective for distribution in fiscal year 2007-2008 6 |
|---|
| 125 | | - | and thereafter. 7 |
|---|
| 126 | | - | SECTION 3. This act shall take effect upon passage. 8 |
|---|
| 81 | + | LC002832 - Page 3 of 4 |
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| 82 | + | The statewide exemption set forth in this chapter shall not apply to: 1 |
|---|
| 83 | + | (1) Public service corporation tangible property subject to taxation pursuant to § 44-13-1; 2 |
|---|
| 84 | + | and 3 |
|---|
| 85 | + | (2) Renewable energy resources and associated equipment subject to taxation pursuant to 4 |
|---|
| 86 | + | § 44-5-3(c). 5 |
|---|
| 87 | + | SECTION 2. This act shall take effect upon passage. 6 |
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