Authorizes the town of Smithfield to set rates that more closely relate to the changes in values and ensure that the tax classification system creates fair and equitable taxation between residential and commercial property.
Impact
The proposed changes would amend existing tax regulations, particularly those concerning how property tax classifications are defined and applied. By authorizing Smithfield to set more relevant tax rates, the bill could lead to increased revenue for the town, which could be utilized for public services or local development projects. However, this shift may also heighten scrutiny regarding fair tax practices and the impact such changes have on residents and businesses alike.
Summary
House Bill H6395 concerns the taxation of property within the town of Smithfield, Rhode Island. This legislation seeks to allow the town to set property tax rates that are more aligned with changes in property values, thereby promoting a fairer and more equitable tax classification system. The bill aims to address the disparity between tax rates applied to residential and commercial properties, enhancing the town's fiscal capabilities while ensuring that taxation is just and commensurate with actual property valuations.
Contention
While the bill aims to strengthen the local government's ability to manage and assess property taxes proactively, there may be concerns among stakeholders about how these adjustments may affect specific groups, particularly lower-income residents and small businesses. The discussions surrounding H6395 reflect a broader debate on local governance and fiscal responsibility, as supporters highlight its potential to improve municipal funding, while critics worry about potential disproportionate tax burdens.
Amends provisions relative to the levy and assessment of local taxes and would provide that the city of Providence may adopt a tax classification with unrestricted tax rates for certain classes of property.
Amends provisions relative to the levy and assessment of local taxes and would provide that the city of Providence may adopt a tax classification with unrestricted tax rates for certain classes of property.
Removes the exemption from taxation granted to Bryant University located in Smithfield, RI subjecting the university to full taxation unless, the university and the town of Smithfield reach an agreement on payment in lieu of taxes on or before 6/30/24.
Removes the exemption from taxation granted to Bryant University located in Smithfield, RI subjecting the university to full taxation unless, the university and the town of Smithfield reach an agreement on payment in lieu of taxes on or before 6/30/24.
Provides that only residential properties and new or rehabilitated residential affordable housing units would be subject to the tax under § 44-5-13.1 relating to taxation of low-income housing.
Provides that only residential properties and new or rehabilitated residential affordable housing units would be subject to the tax under § 44-5-13.1 relating to taxation of low-income housing.
Includes non-owner-occupied residential properties used for short-term rentals for tourist or transient use to be assessed as Class 2 properties on or after the assessment date of December 31, 2024.