Rhode Island 2025 Regular Session

Rhode Island House Bill H6216 Compare Versions

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

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5	5	2025 -- H 6216
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7	7	LC002738
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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-MAXIMUM
16	16	LEVY
17	17	Introduced By: Representative Alex S. Finkelman
18	18	Date Introduced: April 09, 2025
19	19	Referred To: House Municipal Government & Housing
20	20	(Jamestown Town Council)
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 44-5-2 of the General Laws in Chapter 44-5 entitled "Levy and 1
24	24	Assessment of Local Taxes" is hereby amended to read as follows: 2
25	25	44-5-2. Maximum levy. 3
26	26	(a) Through and including its fiscal year 2007, a city or town may levy a tax in an amount 4
27	27	not more than five and one-half percent (5.5%) in excess of the amount levied and certified by that 5
28	28	city or town for the prior year. Through and including its fiscal year 2007, but in no fiscal year 6
29	29	thereafter, the amount levied by a city or town is deemed to be consistent with the five and one-7
30	30	half percent (5.5%) levy growth cap if the tax rate is not more than one hundred and five and one-8
31	31	half percent (105.5%) of the prior year’s tax rate and the budget resolution or ordinance, as 9
32	32	applicable, specifies that the tax rate is not increasing by more than five and one-half percent (5.5%) 10
33	33	except as specified in subsection (c) of this section. In all years when a revaluation or update is not 11
34	34	being implemented, a tax rate is deemed to be one hundred five and one-half percent (105.5%) or 12
35	35	less of the prior year’s tax rate if the tax on a parcel of real property, the value of which is unchanged 13
36	36	for purpose of taxation, is no more than one hundred five and one-half percent (105.5%) of the 14
37	37	prior year’s tax on the same parcel of real property. In any year through and including fiscal year 15
38	38	2007 when a revaluation or update is being implemented, the tax rate is deemed to be one hundred 16
39	39	five and one-half percent (105.5%) of the prior year’s tax rate as certified by the division of property 17
40	40	valuation and municipal finance in the department of revenue. 18
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43	43	LC002738 - Page 2 of 5
44	44	(b) In its fiscal year 2008, a city or town may levy a tax in an amount not more than five 1
45	45	and one-quarter percent (5.25%) in excess of the total amount levied and certified by that city or 2
46	46	town for its fiscal year 2007. In its fiscal year 2009, a city or town may levy a tax in an amount not 3
47	47	more than five percent (5%) in excess of the total amount levied and certified by that city or town 4
48	48	for its fiscal year 2008. In its fiscal year 2010, a city or town may levy a tax in an amount not more 5
49	49	than four and three-quarters percent (4.75%) in excess of the total amount levied and certified by 6
50	50	that city or town in its fiscal year 2009. In its fiscal year 2011, a city or town may levy a tax in an 7
51	51	amount not more than four and one-half percent (4.5%) in excess of the total amount levied and 8
52	52	certified by that city or town in its fiscal year 2010. In its fiscal year 2012, a city or town may levy 9
53	53	a tax in an amount not more than four and one-quarter percent (4.25%) in excess of the total amount 10
54	54	levied and certified by that city or town in its fiscal year 2011. In its fiscal year 2013 and in each 11
55	55	fiscal year thereafter, a city or town may levy a tax in an amount not more than four percent (4%) 12
56	56	in excess of the total amount levied and certified by that city or town for its previous fiscal year. 13
57	57	For purposes of this levy calculation, taxes levied pursuant to chapters 34 and 34.1 of this title shall 14
58	58	not be included. For FY 2018, in the event that a city or town, solely as a result of the exclusion of 15
59	59	the motor vehicle tax in the new levy calculation, exceeds the property tax cap when compared to 16
60	60	FY 2017 after taking into account that there was a motor vehicle tax in FY 2017, said city or town 17
61	61	shall be permitted to exceed the property tax cap for the FY 2018 transition year, but in no event 18
62	62	shall it exceed the four percent (4%) levy cap growth with the car tax portion included; provided, 19
63	63	however, nothing herein shall prohibit a city or town from exceeding the property tax cap if 20
64	64	otherwise permitted pursuant to subsection (d) of this section. 21
65	65	(c) The division of property valuation in the department of revenue shall monitor city and 22
66	66	town compliance with this levy cap, issue periodic reports to the general assembly on compliance, 23
67	67	and make recommendations on the continuation or modification of the levy cap on or before 24
68	68	December 31, 1987, December 31, 1990, and December 31, every third year thereafter. The chief 25
69	69	elected official in each city and town shall provide to the division of property and municipal finance 26
70	70	within thirty (30) days of final action, in the form required, the adopted tax levy and rate and other 27
71	71	pertinent information. 28
72	72	(d) The amount levied by a city or town may exceed the percentage increase as specified 29
73	73	in subsection (a) or (b) of this section if the city or town qualifies under one or more of the following 30
74	74	provisions: 31
75	75	(1) The city or town forecasts or experiences a loss in total non-property tax revenues and 32
76	76	the loss is certified by the department of revenue. 33
77	77	(2) The city or town experiences or anticipates an emergency situation, which causes or 34
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80	80	LC002738 - Page 3 of 5
81	81	will cause the levy to exceed the percentage increase as specified in subsection (a) or (b) of this 1
82	82	section. In the event of an emergency or an anticipated emergency, the city or town shall notify the 2
83	83	auditor general who shall certify the existence or anticipated existence of the emergency. Without 3
84	84	limiting the generality of the foregoing, an emergency shall be deemed to exist when the city or 4
85	85	town experiences or anticipates health insurance costs, retirement contributions, or utility 5
86	86	expenditures that exceed the prior fiscal year’s health insurance costs, retirement contributions, or 6
87	87	utility expenditures by a percentage greater than three (3) times the percentage increase as specified 7
88	88	in subsection (a) or (b) of this section. 8
89	89	(3) A city or town forecasts or experiences debt services expenditures that exceed the prior 9
90	90	year’s debt service expenditures by an amount greater than the percentage increase as specified in 10
91	91	subsection (a) or (b) of this section and that are the result of bonded debt issued in a manner 11
92	92	consistent with general law or a special act. In the event of the debt service increase, the city or 12
93	93	town shall notify the department of revenue which shall certify the debt service increase above the 13
94	94	percentage increase as specified in subsection (a) or (b) of this section the prior year’s debt service. 14
95	95	No action approving or disapproving exceeding a levy cap under the provisions of this section 15
96	96	affects the requirement to pay obligations as described in subsection (d) of this section. 16
97	97	(4) The city or town experiences substantial growth in its tax base as the result of major 17
98	98	new construction that necessitates either significant infrastructure or school housing expenditures 18
99	99	by the city or town or a significant increase in the need for essential municipal services and such 19
100	100	increase in expenditures or demand for services is certified by the department of revenue. 20
101	101	(5) The town of Jamestown, for as long as it uses a financial town meeting, may approve 21
102	102	an annual budget, that provides for a proposed levy increase in excess of the percentage increase, 22
103	103	as specified in subsection (a) or (b) of this section, and said proposed levy is clearly and 23
104	104	unambiguously listed in the proposed budget submitted to, and approved by, the voters of said town 24
105	105	of Jamestown, at a duly called and properly conducted financial town meeting. 25
106	106	(e) Any levy pursuant to subsection (d) of this section in excess of the percentage increase 26
107	107	specified in subsection (a) or (b) of this section shall be approved by the affirmative vote of at least 27
108	108	four-fifths (⅘) of the full membership of the governing body of the city or town, or in the case of a 28
109	109	city or town having a financial town meeting, the majority of the electors present and voting at the 29
110	110	town financial meeting shall also approve the excess levy. 30
111	111	(f) Nothing contained in this section constrains the payment of present or future obligations 31
112	112	as prescribed by § 45-12-1, and all taxable property in each city or town is subject to taxation 32
113	113	without limitation as to rate or amount to pay general obligation bonds or notes of the city or town 33
114	114	except as otherwise specifically provided by law or charter. 34
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118	118	SECTION 2. This act shall take effect upon passage. 1
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120	120	LC002738
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125	125	EXPLANATION
126	126	BY THE LEGISLATIVE COUNCIL
127	127	OF
128	128	A N A C T
129	129	RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES-MAXIMUM
130	130	LEVY
131	131	***
132	132	This act would grant an exemption from the four percent (4%) property tax levy cap to the 1
133	133	town of Jamestown. 2
134	134	This act would take effect upon passage. 3
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136	136	LC002738
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