Rhode Island 2025 Regular Session

Rhode Island House Bill H5752 Compare Versions

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

Old	New	Differences
1	1
2	2
3	3
4	4
5	5	2025 -- H 5752
6	6	========
7	7	LC001721
8	8	========
9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- THE NON-OWNER OCCUPIED PROPERTY TAX
16	16	Introduced By: Representatives Ajello, Cotter, Tanzi, Alzate, Corvese, Felix, Donovan,
17	17	Potter, Edwards, and McGaw
18	18	Date Introduced: February 26, 2025
19	19	Referred To: House Finance
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Legislative finding and purpose. 1
24	24	(a) The general assembly makes the following findings of facts: 2
25	25	(1) The state funds cities and towns pursuant to chapter 13 of title 45. 3
26	26	(2) There is a compelling state interest in protecting the tax base of its cities and towns. 4
27	27	(3) There are numerous non-owner occupied residential properties throughout the cities 5
28	28	and towns of Rhode Island assessed at values over one million dollars ($1,000,000). 6
29	29	(4) The existence of such properties within a city or town has an impact on the value of 7
30	30	real property within the cities and towns and the tax base within these cities and towns. 8
31	31	(5) Non-owner occupied properties sometimes place a greater demand on essential state, 9
32	32	city or town services such as police and fire protection than do occupied properties comparably 10
33	33	assessed for real estate tax purposes. 11
34	34	(6) The residents of non-owner occupied properties are not vested with a motive to 12
35	35	maintain such properties. 13
36	36	(7) The owners of non-owner occupied properties do not always contribute a fair share of 14
37	37	the costs of providing the foregoing essential state, city or town services financed in part by real 15
38	38	estate tax revenues, which revenues are solely based on the assessed value of properties. 16
39	39	(8) Some properties are deliberately left vacant by their owners in the hope that real estate 17
40	40	values will increase, thereby enabling the owners to sell these properties at a substantial profit 18
41	41	without making any of the necessary repairs or improvements to the property. 19
42	42
43	43
44	44	LC001721 - Page 2 of 7
45	45	(9) The non-owner occupation of such property whether for profit speculation, tax benefit, 1
46	46	or any other purposes is the making use of that property and as such, is a privilege incident to the 2
47	47	ownership of the property. 3
48	48	(10) Owners of non-owner occupied properties must be encouraged to use the properties 4
49	49	in a positive manner to stop the spread of deterioration, to increase the stock of viable real estate 5
50	50	within a city or town, and to maintain real estate values within communities. 6
51	51	(11) Owners of non-owner occupied properties must be required, through the state’s power 7
52	52	to tax, to pay a fair share of the cost of providing certain essential state services to protect the public 8
53	53	health, safety, and welfare. 9
54	54	(b) For all of the reasons stated within subsection (a) of this section, the purpose of the 10
55	55	provisions of chapter 72 of title 44 is to impose a statewide tax upon non-owner occupied residential 11
56	56	property assessed at a value of one million dollars ($1,000,000) or more. 12
57	57	SECTION 2. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 13
58	58	adding thereto the following chapter: 14
59	59	CHAPTER 72 15
60	60	THE NON-OWNER OCCUPIED PROPERTY TAX 16
61	61	44-72-1. Short title. 17
62	62	This chapter shall be known and may be cited as the "Non-Owner Occupied Property Tax". 18
63	63	44-72-2. Definitions. 19
64	64	As used in this chapter, the following words and phrases shall have the following meanings: 20
65	65	(1) “Administrator” means the tax administrator within the department of revenue. 21
66	66	(2) “Assessed value” means the assessed value of the real estate as returned by the tax 22
67	67	assessor of the city or town where the property is located. 23
68	68	(3) “Non-owner occupied” means that the residential property is not occupied by the owner 24
69	69	of the property for a majority of the privilege year. A seasonal or vacation occupancy is deemed 25
70	70	non-owner occupied residency for the purposes of this chapter. 26
71	71	(4) “Non-owner occupied tax” means the assessment imposed upon the non-owner 27
72	72	occupied residential property assessed at one million dollars ($1,000,000) or more pursuant to this 28
73	73	chapter. 29
74	74	(5) “Person” means any individual, corporation, company, association, partnership, joint 30
75	75	stock association, and the legal successor thereof or any other entity or group organization against 31
76	76	which a tax may be assessed. 32
77	77	(6) “Taxable year” means July 1 through June 30. 33
78	78	44-72-3. Imposition of tax. 34
79	79
80	80
81	81	LC001721 - Page 3 of 7
82	82	The tax administrator is empowered to impose a tax upon the privilege of utilizing property 1
83	83	as non-owner occupied residential property within the state during any privilege year commencing 2
84	84	with the privilege year beginning July 1, 2025 and every tax year thereafter. The non-owner 3
85	85	occupied tax shall be in addition to any other taxes authorized by the general or public laws. 4
86	86	44-72-4. Exemptions. 5
87	87	This chapter does not supersede any applicable exemption in the general or public laws; 6
88	88	provided, however, that the tax administrator shall be provided with the alleged basis for that 7
89	89	exemption in writing and may reject said alleged exemption if the administrator deems said 8
90	90	exemption is not applicable. 9
91	91	44-72-5. Rate of tax. 10
92	92	The tax authorized by this chapter shall be measured by the assessed value of the real estate: 11
93	93	(1) At the rate of five dollars ($5.00) for each one thousand dollars ($1,000) or fractional 12
94	94	part of the assessed value on properties worth one million dollars ($1,000,000) but less than two 13
95	95	million dollars ($2,000,000); 14
96	96	(2) At the rate of six dollars ($6.00) for each one thousand dollars ($1,000) or fractional 15
97	97	part of the assessed value on properties worth two million dollars ($2,000,000) or more. 16
98	98	44-72-6. Returns. 17
99	99	(a) The tax imposed by this chapter shall be due and payable in four (4) equal installments. 18
100	100	The first installment shall be paid on or before September 15 of the taxable year, the second 19
101	101	installment shall be paid on or before December 15 of the taxable year, the third installment shall 20
102	102	be paid on or before March 15 of the taxable year, and fourth installment shall be paid on or before 21
103	103	June 15 of the taxable year. 22
104	104	(b) The tax administrator is authorized to adopt rules and regulations, pursuant to this 23
105	105	chapter, relative to the form of the return and the data that it shall contain for the correct 24
106	106	computation of the imposed tax. All returns shall be signed by the taxpayer or by its authorized 25
107	107	representative, subject to the pains and penalties of perjury. If a return shows an overpayment of 26
108	108	the tax due, the tax administrator shall refund or credit the overpayment to the taxpayer. 27
109	109	(c) The tax administrator, for good cause shown, may extend the time within which a 28
110	110	taxpayer is required to file a return. If the return is filed during the period of extension, no penalty 29
111	111	or late filing charge shall be imposed for failure to file the return at the time required by this chapter; 30
112	112	provided, however, the taxpayer shall be liable for interest as prescribed in this chapter. Failure to 31
113	113	file the return during the period for the extension shall void the extension. 32
114	114	44-72-7. Set-off for delinquent payment of tax. 33
115	115	If a taxpayer shall fail to pay a tax within thirty (30) days of its due date, the tax 34
116	116
117	117
118	118	LC001721 - Page 4 of 7
119	119	administrator may request any agency of state government making payments to the taxpayer to set-1
120	120	off the amount of the delinquency against any payment due the taxpayer from that agency of state 2
121	121	government and remit the sum to the tax administrator. Upon receipt of the set-off request from the 3
122	122	tax administrator, any agency of state government is authorized and empowered to set-off the 4
123	123	amount of the delinquency against any payment or amounts due the taxpayer. The amount of set-5
124	124	off shall be credited against the tax due from the taxpayer. 6
125	125	44-72-8. Tax on available information – Interest on delinquencies – Penalties – 7
126	126	Collection powers. 8
127	127	If any taxpayer shall fail to file a return within the time required by this chapter, or shall 9
128	128	file an insufficient or incorrect return, or shall not pay the tax imposed by this chapter when it is 10
129	129	due, the tax administrator shall assess the tax upon the information as may be available, which shall 11
130	130	be payable upon demand and shall bear interest at the annual rate provided by § 44-1-7, from the 12
131	131	date when the tax should have been paid. If any part of the tax not paid is due to negligence or 13
132	132	intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount 14
133	133	of the determination shall be added to the tax. The tax administrator shall collect the tax with 15
134	134	interest in the same manner and with the same powers as are prescribed for collection of taxes in 16
135	135	this title. 17
136	136	44-72-9. Claims for refund - Hearing upon denial. 18
137	137	(a) Any taxpayer subject to the provisions of this chapter may file a claim for refund with 19
138	138	the tax administrator at any time within two (2) years after the tax has been paid. If the tax 20
139	139	administrator determines that the tax has been overpaid, the administrator shall make a refund with 21
140	140	interest from the date of overpayment. 22
141	141	(b) Any taxpayer whose claim for refund has been denied may, within thirty (30) days from 23
142	142	the date of the mailing by the administrator of the notice of the decision, request a hearing and the 24
143	143	administrator shall, as soon as practicable, set a time and place for the hearing and shall notify the 25
144	144	taxpayer. 26
145	145	44-72-10. Hearing by tax administrator on application. 27
146	146	Any taxpayer aggrieved by the action of the tax administrator in determining the amount 28
147	147	of any tax or penalty imposed under the provisions of this chapter may apply to the tax 29
148	148	administrator, within thirty (30) days after the notice of the action is mailed to the taxpayer, for a 30
149	149	hearing relative to the tax or penalty. The tax administrator shall fix a time and place for the hearing 31
150	150	and shall so notify the taxpayer. Upon the hearing, the tax administrator shall correct manifest 32
151	151	errors, if any, disclosed at the hearing and thereupon assess and collect the amount lawfully due 33
152	152	together with any penalty or interest thereon. 34
153	153
154	154
155	155	LC001721 - Page 5 of 7
156	156	44-72-11. Appeals. 1
157	157	(a) In any appeal from the imposition of the tax set forth in this chapter, the tax 2
158	158	administrator shall find in favor of an appellant who shows that the property assessed: 3
159	159	(1) Was actively occupied by the owner during the privilege year for more than six (6) 4
160	160	months; or 5
161	161	(2) Was exempt pursuant to the general laws or public laws from the imposition of the tax 6
162	162	set forth in this chapter. 7
163	163	(b) Appeals from administrative orders or decisions made pursuant to any provisions of 8
164	164	this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The taxpayer’s 9
165	165	right to appeal under this section shall be expressly made conditional upon prepayment of all 10
166	166	surcharges, interest, and penalties unless the taxpayer moves for and is granted an exemption from 11
167	167	the prepayment requirement pursuant to § 8-8-26. If the court, after appeal, holds that the taxpayer 12
168	168	is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in 13
169	169	§ 44-1-7.1. 14
170	170	44-72-12. Taxpayers records. 15
171	171	Every taxpayer shall: 16
172	172	(1) Keep records as may be necessary to determine the amount of its liability under this 17
173	173	chapter including, but not limited to: rental agreements, payments for rent, bank statements for 18
174	174	payment of residential expenses, utility bills, and any other records establishing residency or non-19
175	175	residency. 20
176	176	(2) Preserve those records for the period of three (3) years following the date of filing of 21
177	177	any return required by this chapter, or until any litigation or prosecution under this chapter is finally 22
178	178	determined. 23
179	179	(3) Make those records available for inspection by the administrator or any authorized 24
180	180	agents, upon demand, at reasonable times during regular business hours. 25
181	181	44-72-13. Rules and regulations. 26
182	182	The tax administrator is authorized to make and promulgate rules, regulations, and 27
183	183	procedures not inconsistent with state law and fiscal procedures as the administrator deems 28
184	184	necessary for the proper administration of this chapter and to implement the provisions, policies, 29
185	185	and purposes of this chapter. 30
186	186	44-72-14. Severability. 31
187	187	If any provision of this chapter or the application of this chapter to any person or 32
188	188	circumstances is held invalid, that invalidity shall not affect other provisions or applications of the 33
189	189	chapter that can be given effect without the invalid provision or application, and to this end the 34
190	190
191	191
192	192	LC001721 - Page 6 of 7
193	193	provisions of this chapter are declared to be severable. It is declared to be the legislative intent that 1
194	194	this chapter would have been adopted had those provisions not been included or that person, 2
195	195	circumstance, or time period been expressly excluded from its coverage. 3
196	196	SECTION 3. This act shall take effect on July 1, 2025. 4
197	197	========
198	198	LC001721
199	199	========
200	200
201	201
202	202	LC001721 - Page 7 of 7
203	203	EXPLANATION
204	204	BY THE LEGISLATIVE COUNCIL
205	205	OF
206	206	A N A C T
207	207	RELATING TO TAXATION -- THE NON-OWNER OCCUPIED PROPERTY TAX
208	208	***
209	209	This act would impose a property tax on non-owner occupied residential properties 1
210	210	assessed at one million dollars ($1,000,000) and less than two million dollars ($2,000,000) and a 2
211	211	higher tax on properties assessed at two million dollars ($2,000,000) or more. 3
212	212	This act would take effect on July 1, 2025. 4
213	213	========
214	214	LC001721
215	215	========