2025 -- H 6090
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LC002446
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
Introduced By: Representative Tina L. Spears
Date Introduced: March 14, 2025
Referred To: House Municipal Government & Housing
It is enacted by the General Assembly as follows:
SECTION 1. Section 44-5-11.8 of the General Laws in Chapter 44-5 entitled "Levy and 1
Assessment of Local Taxes" is hereby amended to read as follows: 2
44-5-11.8. Tax classification. 3
(a) Upon the completion of any comprehensive revaluation or any update, in accordance 4
with § 44-5-11.6, any city or town may adopt a tax classification plan, by ordinance, with the 5
following limitations: 6
(1) The designated classes of property shall be limited to the classes as defined in 7
subsection (b) of this section. 8
(2) The effective tax rate applicable to any class, excluding class 4, shall not exceed by 9
fifty percent (50%) the rate applicable to any other class, except in the city of Providence and the 10
town of Glocester and the town of East Greenwich; however, in the year following a revaluation or 11
statistical revaluation or update, the city or town council of any municipality may, by ordinance, 12
adopt tax rates for the property class for all ratable tangible personal property no greater than twice 13
the rate applicable to any other class, provided that the municipality documents to, and receives 14
written approval from, the office of municipal affairs that the rate difference is necessary to ensure 15
that the estimated tax levy on the property class for all ratable tangible personal property is not 16
reduced from the prior year as a result of the revaluation or statistical revaluation. 17
(3) Any tax rate changes from one year to the next shall be applied such that the same 18
percentage rate change is applicable to all classes, excluding class 4, except in the city of 19
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Providence and the town of Glocester and the town of East Greenwich. 1
(4) Notwithstanding subsections (a)(2) and (a)(3) of this section, the tax rates applicable to 2
wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are 3
governed by § 44-3-29.1. 4
(5) The tax rates applicable to motor vehicles within Class 4, as defined in subsection (b) 5
of this section, are governed by § 44-34.1-1 [repealed]. 6
(6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure 7
apply to the reporting of, and compliance with, these classification restrictions. 8
(b) Classes of property. 9
(1) Class 1: Residential real estate consisting of no more than five (5) dwelling units; land 10
classified as open space; and dwellings on leased land including mobile homes. In the city of 11
Providence, this class may also include residential properties containing partial commercial or 12
business uses and residential real estate of more than five (5) dwelling units. 13
(i) A homestead exemption provision is also authorized within this class; provided 14
however, that the actual, effective rate applicable to property qualifying for this exemption shall be 15
construed as the standard rate for this class against which the maximum rate applicable to another 16
class shall be determined, except in the town of Glocester and the city of Providence. 17
(ii) In lieu of a homestead exemption, any city or town may divide this class into non-18
owner and owner-occupied property and adopt separate tax rates in compliance with the within tax 19
rate restrictions; provided, however, that the owner-occupied rate shall be construed as the standard 20
rate for this class against which the maximum rate applicable to another class shall be determined, 21
except in the town of Glocester and the city of Providence. 22
(2) Class 2: Commercial and industrial real estate; residential properties containing partial 23
commercial or business uses; and residential real estate of more than five (5) dwelling units. In the 24
city of Providence, properties containing partial commercial or business uses and residential real 25
estate of more than five (5) dwelling units may be included in Class 1. 26
(3) Class 3: All ratable, tangible personal property. 27
(4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of 28
this title. 29
(c) The town council of the town of Glocester and the town council of the town of East 30
Greenwich may, by ordinance, provide for, and adopt, a tax rate on various classes as they shall 31
deem appropriate. Provided, that the tax rate for Class 2 shall not be more than two (2) times the 32
tax rate of Class 1 and the tax rate applicable to Class 3 shall not exceed the tax rate of Class 1 by 33
more than two hundred percent (200%). Glocester shall be able to establish homestead exemptions 34
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up to fifty percent (50%) of value and the calculation provided in subsection (b)(1)(i) shall not be 1
used in setting the differential tax rates. 2
(d) Notwithstanding the provisions of subsection (a) of this section, the town council of the 3
town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with 4
the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or 5
after the assessment date of December 31, 2002. 6
(e) Notwithstanding the provisions of subsection (a) of this section, the town council of the 7
town of Little Compton may hereafter, by ordinance, adopt a tax classification plan in accordance 8
with the provisions of subsections (a) and (b) of this section and the provisions of § 44-5-79, to be 9
applicable to taxes assessed on or after the assessment date of December 31, 2004. 10
(f) Notwithstanding the provisions of subsection (a) of this section, the town council of the 11
town of Scituate may hereafter, by ordinance, change its tax assessment from fifty percent (50%) 12
of value to one hundred percent (100%) of value on residential and commercial/industrial/mixed-13
use property, while tangible property is assessed at one hundred percent (100%) of cost, less 14
depreciation; provided, however, the tax rate for Class 3 (tangible) property shall not exceed the 15
tax rate for Class 1 (residential) property by more than two hundred thirteen percent (213%). This 16
provision shall apply whether or not the fiscal year is also a revaluation year. 17
(g) Notwithstanding the provisions of subsections (a) and (b) of this section, the town 18
council of the town of Coventry may hereafter, by ordinance, adopt a tax classification plan 19
providing that Class 1, as set forth in subsection (b) “Classes of Property” of this section, may also 20
include residential properties containing commercial or business uses, such ordinance to be 21
applicable to taxes assessed on or after the assessment date of December 31, 2014. 22
(h) Notwithstanding the provisions of subsection (a) of this section, the town council of the 23
town of East Greenwich may hereafter, by ordinance, adopt a tax classification plan in accordance 24
with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on 25
or after the assessment date of December 31, 2018. Further, the East Greenwich town council may 26
adopt, repeal, or modify that tax classification plan for any tax year thereafter, notwithstanding the 27
provisions of subsection (a) of this section. 28
(i) Notwithstanding the provisions of subsection (a) of this section, the town council of the 29
town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with 30
the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or 31
after the assessment date of December 31, 2022. 32
(j) Notwithstanding the provisions of subsection (a) of this section, the town council of the 33
town of New Shoreham may hereafter, by ordinance, adopt a tax classification plan in accordance 34
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with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on 1
or after the assessment date of December 31, 2023. 2
(k) Notwithstanding the provisions of subsection (a) of this section, the town council of the 3
town of Bristol may hereafter, by ordinance, adopt a tax classification plan in accordance with the 4
provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or after 5
the assessment date of December 31, 2023. Further, the Bristol town council may adopt, repeal, or 6
modify that tax classification plan for any tax year thereafter, notwithstanding the provisions of 7
subsection (a) of this section. 8
(l) The city council of the city of Providence may, by ordinance, provide for, and adopt, a 9
tax rate on various classes as they shall deem appropriate. Provided, that the tax rate for Class 2 10
shall not be more than two (2) times the tax rate of Class 1; that the tax rate for Class 3 shall not be 11
more than three (3) times the tax rate of Class 1; and that the tax rate for Class 2 shall not be more 12
than three and one-half (3½) times the effective owner-occupied tax rate of Class 1, whether by 13
homestead exemption or separate rates. 14
(m) Notwithstanding the provisions of subsection (a) of this section, the town council of 15
the town of New Shoreham may hereafter, by ordinance, adopt a tax classification plan in 16
accordance with the provisions of subsections (a) and (b) of this section, to be applicable to taxes 17
assessed on or after the assessment date of December 31, 2025. 18
SECTION 2. This act shall take effect upon passage. 19
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
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This act would allow the town council of New Shoreham to adopt a tax classification plan 1
in accordance with the provisions of this section, to be applicable to taxes on or after the assessment 2
date of December 31, 2025. 3
This act would take effect upon passage. 4
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