Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0351 Compare Versions

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

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5	5	2025 -- S 0351
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7	7	LC000603
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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: Senator Louis P. DiPalma
17	17	Date Introduced: February 21, 2025
18	18	Referred To: Senate Housing & Municipal Government
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21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 44-5-11.8 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	44-5-11.8. Tax classification. 3
25	25	(a) Upon the completion of any comprehensive revaluation or any update, in accordance 4
26	26	with § 44-5-11.6, any city or town may adopt a tax classification plan, by ordinance, with the 5
27	27	following limitations: 6
28	28	(1) The designated classes of property shall be limited to the classes as defined in 7
29	29	subsection (b) of this section. 8
30	30	(2) The effective tax rate applicable to any class, excluding class 4, shall not exceed by 9
31	31	fifty percent (50%) the rate applicable to any other class, except in the city of Providence and the 10
32	32	town of Glocester and the town of East Greenwich; however, in the year following a revaluation or 11
33	33	statistical revaluation or update, the city or town council of any municipality may, by ordinance, 12
34	34	adopt tax rates for the property class for all ratable tangible personal property no greater than twice 13
35	35	the rate applicable to any other class, provided that the municipality documents to, and receives 14
36	36	written approval from, the office of municipal affairs that the rate difference is necessary to ensure 15
37	37	that the estimated tax levy on the property class for all ratable tangible personal property is not 16
38	38	reduced from the prior year as a result of the revaluation or statistical revaluation. 17
39	39	(3) Any tax rate changes from one year to the next shall be applied such that the same 18
40	40	percentage rate change is applicable to all classes, excluding class 4, except in the city of 19
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44	44	Providence and the town of Glocester and the town of East Greenwich. 1
45	45	(4) Notwithstanding subsections (a)(2) and (a)(3) of this section, the tax rates applicable to 2
46	46	wholesale and retail inventory within Class 3 as defined in subsection (b) of this section are 3
47	47	governed by § 44-3-29.1. 4
48	48	(5) The tax rates applicable to motor vehicles within Class 4, as defined in subsection (b) 5
49	49	of this section, are governed by § 44-34.1-1 [repealed]. 6
50	50	(6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure 7
51	51	apply to the reporting of, and compliance with, these classification restrictions. 8
52	52	(b) Classes of property. 9
53	53	(1) Class 1: Residential real estate consisting of no more than five (5) dwelling units; land 10
54	54	classified as open space; and dwellings on leased land including mobile homes. In the city of 11
55	55	Providence, this class may also include residential properties containing partial commercial or 12
56	56	business uses and residential real estate of more than five (5) dwelling units. 13
57	57	(i) A homestead exemption provision is also authorized within this class; provided 14
58	58	however, that the actual, effective rate applicable to property qualifying for this exemption shall be 15
59	59	construed as the standard rate for this class against which the maximum rate applicable to another 16
60	60	class shall be determined, except in the town of Glocester and the city of Providence. 17
61	61	(ii) In lieu of a homestead exemption, any city or town may divide this class into non-18
62	62	owner and owner-occupied property and adopt separate tax rates in compliance with the within tax 19
63	63	rate restrictions; provided, however, that the owner-occupied rate shall be construed as the standard 20
64	64	rate for this class against which the maximum rate applicable to another class shall be determined, 21
65	65	except in the town of Glocester and the city of Providence. 22
66	66	(2) Class 2: Commercial and industrial real estate; residential properties containing partial 23
67	67	commercial or business uses; and residential real estate of more than five (5) dwelling units. In the 24
68	68	city of Providence, properties containing partial commercial or business uses and residential real 25
69	69	estate of more than five (5) dwelling units may be included in Class 1. 26
70	70	(3) Class 3: All ratable, tangible personal property. 27
71	71	(4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of 28
72	72	this title. 29
73	73	(c) The town council of the town of Glocester and the town council of the town of East 30
74	74	Greenwich may, by ordinance, provide for, and adopt, a tax rate on various classes as they shall 31
75	75	deem appropriate. Provided, that the tax rate for Class 2 shall not be more than two (2) times the 32
76	76	tax rate of Class 1 and the tax rate applicable to Class 3 shall not exceed the tax rate of Class 1 by 33
77	77	more than two hundred percent (200%). Glocester shall be able to establish homestead exemptions 34
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81	81	up to fifty percent (50%) of value and the calculation provided in subsection (b)(1)(i) shall not be 1
82	82	used in setting the differential tax rates. 2
83	83	(d) Notwithstanding the provisions of subsection (a) of this section, the town council of the 3
84	84	town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with 4
85	85	the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or 5
86	86	after the assessment date of December 31, 2002. 6
87	87	(e) Notwithstanding the provisions of subsection (a) of this section, the town council of the 7
88	88	town of Little Compton may hereafter, by ordinance, adopt a tax classification plan in accordance 8
89	89	with the provisions of subsections (a) and (b) of this section and the provisions of § 44-5-79, to be 9
90	90	applicable to taxes assessed on or after the assessment date of December 31, 2004. 10
91	91	(f) Notwithstanding the provisions of subsection (a) of this section, the town council of the 11
92	92	town of Scituate may hereafter, by ordinance, change its tax assessment from fifty percent (50%) 12
93	93	of value to one hundred percent (100%) of value on residential and commercial/industrial/mixed-13
94	94	use property, while tangible property is assessed at one hundred percent (100%) of cost, less 14
95	95	depreciation; provided, however, the tax rate for Class 3 (tangible) property shall not exceed the 15
96	96	tax rate for Class 1 (residential) property by more than two hundred thirteen percent (213%). This 16
97	97	provision shall apply whether or not the fiscal year is also a revaluation year. 17
98	98	(g) Notwithstanding the provisions of subsections (a) and (b) of this section, the town 18
99	99	council of the town of Coventry may hereafter, by ordinance, adopt a tax classification plan 19
100	100	providing that Class 1, as set forth in subsection (b) “Classes of Property” of this section, may also 20
101	101	include residential properties containing commercial or business uses, such ordinance to be 21
102	102	applicable to taxes assessed on or after the assessment date of December 31, 2014. 22
103	103	(h) Notwithstanding the provisions of subsection (a) of this section, the town council of the 23
104	104	town of East Greenwich may hereafter, by ordinance, adopt a tax classification plan in accordance 24
105	105	with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on 25
106	106	or after the assessment date of December 31, 2018. Further, the East Greenwich town council may 26
107	107	adopt, repeal, or modify that tax classification plan for any tax year thereafter, notwithstanding the 27
108	108	provisions of subsection (a) of this section. 28
109	109	(i) Notwithstanding the provisions of subsection (a) of this section, the town council of the 29
110	110	town of Middletown may hereafter, by ordinance, adopt a tax classification plan in accordance with 30
111	111	the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or 31
112	112	after the assessment date of December 31, 2022. If, in lieu of a homestead exemption, the town of 32
113	113	Middletown adopts a tax classification plan which divides the class consisting of residential real 33
114	114	estate into non-owner and owner-occupied property and adopts separate tax rates in compliance 34
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118	118	with the tax rate restrictions, the town of Middletown, by ordinance or resolution, shall provide 1
119	119	rules and regulations including, but not limited to, those governing the division and definition of 2
120	120	non-owner and owner-occupied properties. 3
121	121	(j) Notwithstanding the provisions of subsection (a) of this section, the town council of the 4
122	122	town of New Shoreham may hereafter, by ordinance, adopt a tax classification plan in accordance 5
123	123	with the provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on 6
124	124	or after the assessment date of December 31, 2023. 7
125	125	(k) Notwithstanding the provisions of subsection (a) of this section, the town council of the 8
126	126	town of Bristol may hereafter, by ordinance, adopt a tax classification plan in accordance with the 9
127	127	provisions of subsections (a) and (b) of this section, to be applicable to taxes assessed on or after 10
128	128	the assessment date of December 31, 2023. Further, the Bristol town council may adopt, repeal, or 11
129	129	modify that tax classification plan for any tax year thereafter, notwithstanding the provisions of 12
130	130	subsection (a) of this section. 13
131	131	(l) The city council of the city of Providence may, by ordinance, provide for, and adopt, a 14
132	132	tax rate on various classes as they shall deem appropriate. Provided, that the tax rate for Class 2 15
133	133	shall not be more than two (2) times the tax rate of Class 1; that the tax rate for Class 3 shall not be 16
134	134	more than three (3) times the tax rate of Class 1; and that the tax rate for Class 2 shall not be more 17
135	135	than three and one-half (3½) times the effective owner-occupied tax rate of Class 1, whether by 18
136	136	homestead exemption or separate rates. 19
137	137	SECTION 2. This act shall take effect upon passage. 20
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144	144	EXPLANATION
145	145	BY THE LEGISLATIVE COUNCIL
146	146	OF
147	147	A N A C T
148	148	RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
149	149	***
150	150	This act would allow the town of Middletown to adopt a tax classification plan for 1
151	151	residential real estate which divides the class into non-owner and owner-occupied properties with 2
152	152	separate tax rates. 3
153	153	This act would take effect upon passage. 4
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