Rhode Island 2025 Regular Session

Rhode Island House Bill H6162 Compare Versions

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

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5	5	2025 -- H 6162
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7	7	LC002647
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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 -- LEVY AND ASSESSMENT OF LOCAL TAXES
16	16	Introduced By: Representatives Kislak, Slater, Ajello, and Biah
17	17	Date Introduced: April 02, 2025
18	18	Referred To: House Municipal Government & Housing
19	19	(Providence)
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21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 44-5-2 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	44-5-2. Maximum levy. 3
25	25	(a) Through and including its fiscal year 2007, a city or town may levy a tax in an amount 4
26	26	not more than five and one-half percent (5.5%) in excess of the amount levied and certified by that 5
27	27	city or town for the prior year. Through and including its fiscal year 2007, but in no fiscal year 6
28	28	thereafter, the amount levied by a city or town is deemed to be consistent with the five and one-7
29	29	half percent (5.5%) levy growth cap if the tax rate is not more than one hundred and five and one-8
30	30	half percent (105.5%) of the prior year’s tax rate and the budget resolution or ordinance, as 9
31	31	applicable, specifies that the tax rate is not increasing by more than five and one-half percent (5.5%) 10
32	32	except as specified in subsection (c) of this section. In all years when a revaluation or update is not 11
33	33	being implemented, a tax rate is deemed to be one hundred five and one-half percent (105.5%) or 12
34	34	less of the prior year’s tax rate if the tax on a parcel of real property, the value of which is unchanged 13
35	35	for purpose of taxation, is no more than one hundred five and one-half percent (105.5%) of the 14
36	36	prior year’s tax on the same parcel of real property. In any year through and including fiscal year 15
37	37	2007 when a revaluation or update is being implemented, the tax rate is deemed to be one hundred 16
38	38	five and one-half percent (105.5%) of the prior year’s tax rate as certified by the division of property 17
39	39	valuation and municipal finance in the department of revenue. 18
40	40	(b) In its fiscal year 2008, a city or town may levy a tax in an amount not more than five 19
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44	44	and one-quarter percent (5.25%) in excess of the total amount levied and certified by that city or 1
45	45	town for its fiscal year 2007. In its fiscal year 2009, a city or town may levy a tax in an amount not 2
46	46	more than five percent (5%) in excess of the total amount levied and certified by that city or town 3
47	47	for its fiscal year 2008. In its fiscal year 2010, a city or town may levy a tax in an amount not more 4
48	48	than four and three-quarters percent (4.75%) in excess of the total amount levied and certified by 5
49	49	that city or town in its fiscal year 2009. In its fiscal year 2011, a city or town may levy a tax in an 6
50	50	amount not more than four and one-half percent (4.5%) in excess of the total amount levied and 7
51	51	certified by that city or town in its fiscal year 2010. In its fiscal year 2012, a city or town may levy 8
52	52	a tax in an amount not more than four and one-quarter percent (4.25%) in excess of the total amount 9
53	53	levied and certified by that city or town in its fiscal year 2011. In its fiscal year 2013 and in each 10
54	54	fiscal year thereafter, a city or town may levy a tax in an amount not more than four percent (4%) 11
55	55	in excess of the total amount levied and certified by that city or town for its previous fiscal year. 12
56	56	For purposes of this levy calculation, taxes levied pursuant to chapters 34 and 34.1 of this title shall 13
57	57	not be included. For FY 2018, in the event that a city or town, solely as a result of the exclusion of 14
58	58	the motor vehicle tax in the new levy calculation, exceeds the property tax cap when compared to 15
59	59	FY 2017 after taking into account that there was a motor vehicle tax in FY 2017, said city or town 16
60	60	shall be permitted to exceed the property tax cap for the FY 2018 transition year, but in no event 17
61	61	shall it exceed the four percent (4%) levy cap growth with the car tax portion included; provided, 18
62	62	however, nothing herein shall prohibit a city or town from exceeding the property tax cap if 19
63	63	otherwise permitted pursuant to subsection (d) of this section. 20
64	64	(c) The division of property valuation in the department of revenue shall monitor city and 21
65	65	town compliance with this levy cap, issue periodic reports to the general assembly on compliance, 22
66	66	and make recommendations on the continuation or modification of the levy cap on or before 23
67	67	December 31, 1987, December 31, 1990, and December 31, every third year thereafter. The chief 24
68	68	elected official in each city and town shall provide to the division of property and municipal finance 25
69	69	within thirty (30) days of final action, in the form required, the adopted tax levy and rate and other 26
70	70	pertinent information. 27
71	71	(d) The amount levied by a city or town may exceed the percentage increase as specified 28
72	72	in subsection (a) or (b) of this section if the city or town qualifies under one or more of the following 29
73	73	provisions: 30
74	74	(1) The city or town forecasts or experiences a loss in total non-property tax revenues and 31
75	75	the loss is certified by the department of revenue. 32
76	76	(2) The city or town experiences or anticipates an emergency situation, which causes or 33
77	77	will cause the levy to exceed the percentage increase as specified in subsection (a) or (b) of this 34
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81	81	section. In the event of an emergency or an anticipated emergency, the city or town shall notify the 1
82	82	auditor general who shall certify the existence or anticipated existence of the emergency. Without 2
83	83	limiting the generality of the foregoing, an emergency shall be deemed to exist when the city or 3
84	84	town experiences or anticipates health insurance costs, retirement contributions, or utility 4
85	85	expenditures that exceed the prior fiscal year’s health insurance costs, retirement contributions, or 5
86	86	utility expenditures by a percentage greater than three (3) times the percentage increase as specified 6
87	87	in subsection (a) or (b) of this section. 7
88	88	(3) A city or town forecasts or experiences debt services expenditures that exceed the prior 8
89	89	year’s debt service expenditures by an amount greater than the percentage increase as specified in 9
90	90	subsection (a) or (b) of this section and that are the result of bonded debt issued in a manner 10
91	91	consistent with general law or a special act. In the event of the debt service increase, the city or 11
92	92	town shall notify the department of revenue which shall certify the debt service increase above the 12
93	93	percentage increase as specified in subsection (a) or (b) of this section the prior year’s debt service. 13
94	94	No action approving or disapproving exceeding a levy cap under the provisions of this section 14
95	95	affects the requirement to pay obligations as described in subsection (d) of this section. 15
96	96	(4) The city or town experiences substantial growth in its tax base as the result of major 16
97	97	new construction that necessitates either significant infrastructure or school housing expenditures 17
98	98	by the city or town or a significant increase in the need for essential municipal services and such 18
99	99	increase in expenditures or demand for services is certified by the department of revenue. 19
100	100	(e) Any levy pursuant to subsection (d) of this section in excess of the percentage increase 20
101	101	specified in subsection (a) or (b) of this section shall be approved by the affirmative vote of at least 21
102	102	four-fifths (⅘) of the full membership of the governing body of the city or town, or in the case of a 22
103	103	city or town having a financial town meeting, the majority of the electors present and voting at the 23
104	104	town financial meeting shall also approve the excess levy. 24
105	105	(f) Nothing contained in this section constrains the payment of present or future obligations 25
106	106	as prescribed by § 45-12-1, and all taxable property in each city or town is subject to taxation 26
107	107	without limitation as to rate or amount to pay general obligation bonds or notes of the city or town 27
108	108	except as otherwise specifically provided by law or charter. 28
109	109	(g) Notwithstanding anything to the contrary, the City of Providence is permitted a one-29
110	110	year levy cap exemption for fiscal year 2026 not to exceed eight percent (8%). 30
111	111	SECTION 2. This act shall take effect upon passage. 31
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118	118	EXPLANATION
119	119	BY THE LEGISLATIVE COUNCIL
120	120	OF
121	121	A N A C T
122	122	RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
123	123	***
124	124	This act would permit the City of Providence a one-year levy cap for fiscal year 2026 not 1
125	125	to exceed eight percent (8%). This act is enabling legislation in furtherance of a unanimously passed 2
126	126	Providence City Council resolution dated March 20, 2025, and approvingly signed by Mayor Brett 3
127	127	Smiley on March 24, 2025. 4
128	128	This act would take effect upon passage. 5
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130	130	LC002647
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