Rhode Island 2025 Regular Session

Rhode Island House Bill H6189 Compare Versions

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

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5	5	2025 -- H 6189
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7	7	LC002670
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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 -- NON-OWNER OCCUPIED PROPERTY TAX ACT
16	16	Introduced By: Representatives Ajello, Tanzi, Alzate, Donovan, Edwards, Corvese,
17	17	Cotter, Spears, Cortvriend, and McGaw
18	18	Date Introduced: April 04, 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. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 1
24	24	adding thereto the following chapter: 2
25	25	CHAPTER 72 3
26	26	NON-OWNER OCCUPIED PROPERTY TAX ACT 4
27	27	44-72-1. Short title. 5
28	28	This chapter shall be known and may be cited as the "Non-Owner Occupied Property Tax 6
29	29	Act". 7
30	30	44-72-2. Purpose. 8
31	31	(a) The state funds cities and towns pursuant to chapter 13 of title 45. 9
32	32	(b) There is a compelling state interest in protecting the tax base of its cities and towns. 10
33	33	(c) There are numerous non-owner occupied residential properties throughout the cities 11
34	34	and towns of Rhode Island assessed at values over one million dollars ($1,000,000). 12
35	35	(d) The existence of such properties within a city or town has an impact on the value of 13
36	36	real property within the cities and towns and the tax base within these cities and towns. 14
37	37	(e) Non-owner occupied properties sometimes place a greater demand on essential state, 15
38	38	city or town services such as police and fire protection than do occupied properties comparably 16
39	39	assessed for real estate tax purposes. 17
40	40	(f) The residents of non-owner occupied properties are not vested with a motive to maintain 18
41	41	such properties. 19
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43	43
44	44	LC002670 - Page 2 of 7
45	45	(g) The owners of non-owner occupied properties do not always contribute a fair share of 1
46	46	the costs of providing the foregoing essential state, city or town services financed in part by real 2
47	47	estate tax revenues, which revenues are solely based on the assessed value of properties. 3
48	48	(h) Some properties are deliberately left vacant by their owners in the hope that real estate 4
49	49	values will increase, thereby enabling the owners to sell these properties at a substantial profit 5
50	50	without making any of the necessary repairs or improvements to the property. 6
51	51	(i) The non-owner occupation of such property whether for profit speculation, tax benefit, 7
52	52	or any other purposes is the making use of that property and as such, is a privilege incident to the 8
53	53	ownership of the property. 9
54	54	(j) Owners of non-owner occupied properties must be encouraged to use the properties in 10
55	55	a positive manner to stop the spread of deterioration, to increase the stock of viable real estate 11
56	56	within a city or town, and to maintain real estate values within communities. 12
57	57	(k) Owners of non-owner occupied properties must be required, through a state’s power to 13
58	58	tax, to pay a fair share of the cost of providing certain essential state services to protect the public 14
59	59	health, safety, and welfare. 15
60	60	(l) For all of the reasons stated within this section, the purpose of this chapter is to impose 16
61	61	a statewide tax upon non-owner occupied residential property assessed at a value of eight hundred 17
62	62	thousand dollars ($800,000) or more. 18
63	63	44-72-3. Definitions. 19
64	64	The following words and phrases as used in this chapter 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 eight hundred thousand dollars ($800,000) or more 28
73	73	pursuant to this 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	44-72-4. Imposition of tax. 34
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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	44-72-5. 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	44-72-6. 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 four-tenths of one percent (0.4%) of the assessed value on properties 12
94	94	worth at least eight hundred thousand dollars ($800,000) but less than one million dollars 13
95	95	($1,000,000); 14
96	96	(2) At the rate of one-half of one percent (0.5%) of the assessed value on properties worth 15
97	97	at least one million dollars ($1,000,000) but less than two million dollars ($2,000,000); and 16
98	98	(3) At the rate of six-tenths of one percent (0.6%) of the assessed value on properties worth 17
99	99	in excess of two million dollars ($2,000,000). 18
100	100	44-72-7. Returns. 19
101	101	(a) The tax imposed by this chapter shall be due and payable in four (4) equal installments. 20
102	102	The first installment shall be paid on or before September 15 of the taxable year, the second 21
103	103	installment shall be paid on or before December 15 of the taxable year, the third installment shall 22
104	104	be paid on or before March 15 of the taxable year, and fourth installment shall be paid on or before 23
105	105	June 15 of the taxable year. 24
106	106	(b) The tax administrator is authorized to adopt rules, pursuant to this chapter, relative to 25
107	107	the form of the return and the data that it shall contain for the correct computation of the imposed 26
108	108	tax. All returns shall be signed by the taxpayer or by its authorized representative, subject to the 27
109	109	pains and penalties of perjury. If a return shows an overpayment of the tax due, the tax administrator 28
110	110	shall refund or credit the overpayment to the taxpayer. 29
111	111	(c) The tax administrator, for good cause shown, may extend the time within which a 30
112	112	taxpayer is required to file a return. If the return is filed during the period of extension, no penalty 31
113	113	or late filing charge shall be imposed for failure to file the return at the time required by this chapter; 32
114	114	however, the taxpayer shall be liable for interest as prescribed in this chapter. Failure to file the 33
115	115	return during the period for the extension shall void the extension. 34
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119	119	44-72-8. Set-off for delinquent payment of tax. 1
120	120	If a taxpayer shall fail to pay a tax within thirty (30) days of its due date, the tax 2
121	121	administrator may request any agency of state government making payments to the taxpayer to set-3
122	122	off the amount of the delinquency against any payment due the taxpayer from the agency of state 4
123	123	government and remit the sum to the tax administrator. Upon receipt of the set-off request from the 5
124	124	tax administrator, any agency of state government is authorized and empowered to set-off the 6
125	125	amount of the delinquency against any payment or amounts due the taxpayer. The amount of set-7
126	126	off shall be credited against the tax due from the taxpayer. 8
127	127	44-72-9. Tax on available information – Interest on delinquencies – Penalties – 9
128	128	Collection powers. 10
129	129	If any taxpayer shall fail to file a return within the time required by this chapter, or shall 11
130	130	file an insufficient or incorrect return, or shall not pay the tax imposed by this chapter when it is 12
131	131	due, the tax administrator shall assess the tax upon the information as may be available, which shall 13
132	132	be payable upon demand and shall bear interest at the annual rate provided by § 44-1-7, from the 14
133	133	date when the tax should have been paid. If any part of the tax not paid is due to negligence or 15
134	134	intentional disregard of the provisions of this chapter, a penalty of ten percent (10%) of the amount 16
135	135	of the determination shall be added to the tax. The tax administrator shall collect the tax with 17
136	136	interest in the same manner and with the same powers as are prescribed for collection of taxes in 18
137	137	this title. 19
138	138	44-72-10. Claims for refund - Hearing upon denial. 20
139	139	(a) Any taxpayer subject to the provisions of this chapter, may file a claim for refund with 21
140	140	the tax administrator at any time within two (2) years after the tax has been paid. If the tax 22
141	141	administrator determines that the tax has been overpaid, the administrator shall make a refund with 23
142	142	interest from the date of overpayment. 24
143	143	(b) Any taxpayer whose claim for refund has been denied may, within thirty (30) days from 25
144	144	the date of the mailing by the administrator of the notice of the decision, request a hearing and the 26
145	145	administrator shall, as soon as practicable, set a time and place for the hearing and shall notify the 27
146	146	taxpayer. 28
147	147	44-72-11. Hearing by tax administrator on application. 29
148	148	Any taxpayer aggrieved by the action of the tax administrator in determining the amount 30
149	149	of any tax or penalty imposed under the provisions of this chapter may apply to the tax 31
150	150	administrator, within thirty (30) days after the notice of the action is mailed to the taxpayer, for a 32
151	151	hearing relative to the tax or penalty. The tax administrator shall fix a time and place for the hearing 33
152	152	and shall so notify the taxpayer. Upon the hearing, the tax administrator shall correct manifest 34
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156	156	errors, if any, disclosed at the hearing and thereupon assess and collect the amount lawfully due 1
157	157	together with any penalty or interest thereon. 2
158	158	44-72-12. Appeals. 3
159	159	(a) In any appeal from the imposition of the tax set forth in this chapter, the tax 4
160	160	administrator shall find in favor of an appellant who shows that the property assessed: 5
161	161	(1) Was actively occupied by the owner during the privilege year for more than six (6) 6
162	162	months; or 7
163	163	(2) Was exempt pursuant to the general laws or public laws from the imposition of the tax 8
164	164	set forth in this chapter. 9
165	165	(b) Appeals from administrative orders or decisions made pursuant to any provisions of 10
166	166	this chapter shall be to the sixth division district court pursuant to chapter 8 of title 8. The taxpayer’s 11
167	167	right to appeal under this section shall be expressly made conditional upon prepayment of all 12
168	168	surcharges, interest, and penalties unless the taxpayer moves for and is granted an exemption from 13
169	169	the prepayment requirement pursuant to § 8-8-26. If the court, after appeal, holds that the taxpayer 14
170	170	is entitled to a refund, the taxpayer shall also be paid interest on the amount at the rate provided in 15
171	171	§ 44-1-7.1. 16
172	172	44-72-13. Taxpayer records. 17
173	173	Every taxpayer shall: 18
174	174	(1) Keep records as may be necessary to determine the amount of its liability under this 19
175	175	chapter, including, but not limited to: rental agreements, payments for rent, bank statements for 20
176	176	payment of residential expenses, utility bills, and any other records establishing residency or non-21
177	177	residency. 22
178	178	(2) Preserve those records for the period of three (3) years following the date of filing of 23
179	179	any return required by this chapter, or until any litigation or prosecution under this chapter is finally 24
180	180	determined. 25
181	181	(3) Make those records available for inspection by the administrator or authorized agents, 26
182	182	upon demand, at reasonable times during regular business hours. 27
183	183	44-72-14. Rules and regulations. 28
184	184	The tax administrator is authorized to make and promulgate rules, regulations, and 29
185	185	procedures not inconsistent with state law and fiscal procedures as the administrator deems 30
186	186	necessary for the proper administration of this chapter and to carry out the provisions, policies, and 31
187	187	purposes of this chapter. 32
188	188	44-72-15. Severability. 33
189	189	If any provision of this chapter or the application of this chapter to any person or 34
190	190
191	191
192	192	LC002670 - Page 6 of 7
193	193	circumstances is held invalid, that invalidity shall not affect other provisions or applications of the 1
194	194	chapter that can be given effect without the invalid provision or application, and to this end the 2
195	195	provisions of this chapter are declared to be severable. It is declared to be the legislative intent that 3
196	196	this chapter would have been adopted had those provisions not been included or that person, 4
197	197	circumstance, or time period been expressly excluded from its coverage. 5
198	198	SECTION 2. This act shall take effect on January 1, 2026. 6
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205	205	EXPLANATION
206	206	BY THE LEGISLATIVE COUNCIL
207	207	OF
208	208	A N A C T
209	209	RELATING TO TAXATION -- NON-OWNER OCCUPIED PROPERTY TAX ACT
210	210	***
211	211	This act would impose a non-owner occupied property tax on residential properties 1
212	212	assessed in excess of eight hundred thousand dollars ($800,000) at variable rates dependent on 2
213	213	values assessed by local tax assessors. 3
214	214	This act would take effect on January 1 2026. 4
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