Rhode Island HB 7556: AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES (Makes permanent the tax exemption for certain residential property developments which have either not been completed or, if completed, have not been sold/occupied which would have expired on December 31, 2021.)

Bill Text

2020 -- H 7556
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LC004290
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2020
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A N A C T
RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
Introduced By: Representatives Edwards, Kennedy, Bennett, and Caldwell
Date Introduced: February 12, 2020
Referred To: House Municipal Government

It is enacted by the General Assembly as follows:
SECTION 1. Section 44-5-12 of the General Laws in Chapter 44-5 entitled "Levy and 1
Assessment of Local Taxes" is hereby amended to read as follows: 2
44-5-12. Assessment at full and fair cash value. 3
(a) All real property subject to taxation shall be assessed at its full and fair cash value, or 4
at a uniform percentage of its value, not to exceed one hundred percent (100%), to be determined 5
by the assessors in each town or city; provided, that: 6
(1) Any residential property encumbered by a covenant recorded in the land records in 7
favor of a governmental unit or Rhode Island housing and mortgage finance corporation 8
restricting either or both the rents that may be charged or the incomes of the occupants shall be 9
assessed and taxed in accordance with § 44-5-13.11; 10
(2) In assessing real estate that is classified as farm land, forest, or open space land in 11
accordance with chapter 27 of this title, the assessors shall consider no factors in determining the 12
full and fair cash value of the real estate other than those that relate to that use without regard to 13
neighborhood land use of a more intensive nature; 14
(3) Warwick. The city council of the city of Warwick is authorized to provide, by 15
ordinance, that the owner of any dwelling of one to three (3) family units in the city of Warwick 16
who makes any improvements or additions on his or her principal place of residence in the 17
amount up to fifteen thousand dollars ($15,000), as may be determined by the tax assessor of the 18
city of Warwick, is exempt from reassessment of property taxes on the improvement or addition 19

LC004290 - Page 2 of 4
until the next general citywide reevaluation of property values by the tax assessor. For the 1
purposes of this section, "residence" is defined as voting address. This exemption does not apply 2
to any commercial structure. The property owner shall supply all necessary plans to the building 3
official for the improvements or addition and shall pay all requisite building and other permitting 4
fees as now are required by law; and 5
(4) Central Falls. The city council of the city of Central Falls is authorized to provide, by 6
ordinance, that the owner of any dwelling of one to eight (8) units who makes any improvements 7
or additions to his or her residential or rental property in an amount not to exceed twenty-five 8
thousand dollars ($25,000), as determined by the tax assessor of the city of Central Falls, is 9
exempt from reassessment of property taxes on the improvement or addition until the next general 10
citywide reevaluation of property values by the tax assessor. The property owner shall supply all 11
necessary plans to the building official for the improvements or additions and shall pay all 12
requisite building and other permitting fees as are now required by law. 13
(5) Tangible property shall be assessed according to the asset classification table as 14
defined in § 44-5-12.1. 15
(6) Provided, however, that, for taxes levied after December 31, 2015, new construction 16
on development property is exempt from the assessment of taxes under this chapter at the full and 17
fair cash value of the improvements, as long as: 18
(i) An owner of development property files an affidavit claiming the exemption with the 19
local tax assessor by December 31 each year; and 20
(ii) The assessor shall then determine if the real property on which new construction is 21
located is development property. If the real property is development property, the assessor shall 22
exempt the new construction located on that development property from the collection of taxes on 23
improvements, until such time as the real property no longer qualifies as development property, 24
as defined herein. 25
For the purposes of this section, "development property" means: (A) Real property on 26
which a single-family residential dwelling or residential condominium is situated and said single-27
family residential dwelling or residential condominium unit is not occupied, has never been 28
occupied, is not under contract, and is on the market for sale; or (B) Improvements and/or 29
rehabilitation of single-family residential dwellings or residential condominiums that the owner 30
of such development property purchased out of a foreclosure sale, auction, or from a bank, and 31
which property is not occupied. Such property described in § 44-5-12(a)(6)(ii) shall continue to 32
be taxed at the assessed value at the time of purchase until such time as such property is sold or 33
occupied and no longer qualifies as development property.