Senate Bill #395 (2017)

AN ACT RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES

Provides for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled.

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Changes since original draft

  • 2017 – S 0395
  • 2017 – S 0395 SUBSTITUTE A
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  • LC001783
  • LC001783/SUB A
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  • S TATE OF RHODE IS L AND
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2017
  • ____________
  • A N A C T
  • 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. 2017
  • ____________
  • A N A C T
  • RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES
  • Introduced By: Senators Conley, Lombardi, Lombardo, Archambault, and Pearson
  • Date Introduced: March 02, 2017
  • Referred To: Senate Judiciary
  • It is enacted by the GeneralAssembly as follows:
  • SECTION 1. Sections 44-5-60, 44-5-60.1, 44-5-65, 44-5-70, 44-5-80 and 44-5-85 of the General Laws in Chapter 44-5 entitled "Levy and Assessment of Local Taxes" are hereby amended to read as follows:
  • 44-5-60. North Providence – Homestead exemptions.
  • (a) The mayor, upon approval of the town council of the town of North Providence, is authorized to annually fix the amount, if any, of homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of North Providence and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. The exemption only applies to class 3 residential property as defined in § 44-5-57 improved with a dwelling house whose owner is a resident of North Providence and who occupies the property as his or her principal residence. The dwelling house shall consist of no more than five (5) dwelling units. In order to determine compliance with the homestead exemption as outlined in this subsection, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  • (b) In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the exemption is void for that portion of the year following the sale or transfer and the buyer or transferee is liable to the town of North Providence for any tax benefit received after the sale or transfer the town council of North Providence may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption; provided, that there is a homestead exemption for owner occupied residential and commercial mixed-use (class 5) real estate in an amount not to exceed ten percent (10%) of the assessed value.
  • It is enacted by the General Assembly as follows:
  • SECTION 1. Sections 44-5-60, 44-5-60.1, 44-5-65, 44-5-70, 44-5-80 and 44-5-85 of the General Laws in Chapter 44-5 entitled "Levy and Assessment of Local Taxes" are hereby amended to read as follows:
  • 44-5-60. North Providence – Homestead exemptions.
  • (a) The mayor, upon approval of the town council of the town of North Providence, is authorized to annually fix the amount, if any, of homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of North Providence and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. The exemption only applies to class 3 residential property as defined in § 44-5-57 improved with a dwelling house whose owner is a resident of North Providence and who occupies the property as his or her principal residence. The dwelling house shall consist of no more than five (5) dwelling units. In order to determine compliance with the homestead exemption as outlined in this subsection, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  • (b) In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the exemption is void for that portion of the year following the sale or transfer and the buyer or transferee is liable to the town of North Providence for any tax benefit received after the sale or transfer the town council of North Providence may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption; provided, that there is a homestead exemption for owner occupied residential and commercial mixed-use (class 5) real estate in an amount not to exceed ten percent (10%) of the assessed value.
  • 44-5-60.1. Johnston – Homestead exemptions.
  • (a) The mayor of the town of Johnston, upon approval of the town council, is authorized to annually fix the amount, if any, of homestead exemption with respect to assessed value from local taxation on taxable real property used for residentialpurposes in the town of Johnston and to grant homestead exemptions to the owner(s) of that residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. That exemption only applies to class 3 residential property as defined in § 44-5-57 improved with a dwelling house whose owner is a resident of Johnston and who occupies the property as his or her principal residence. The dwelling house shall consist of no more than five (5) dwelling units. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  • (a) The mayor of the town of Johnston, upon approval of the town council, is authorized to annually fix the amount, if any, of homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of Johnston and to grant homestead exemptions to the owner(s) of that residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. That exemption only applies to class 3 residential property as defined in § 44-5-57 improved with a dwelling house whose owner is a resident of Johnston and who occupies the property as his or her principal residence. The dwelling house shall consist of no more than five (5) dwelling units. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  • (b) In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the exemption is void for that portion of the year following the sale or transfer, and the buyer or transferee shall be liable to the town of Johnston for any tax benefit received after the sale or transfer the mayor of the town of Johnston, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption. Provided, that there shall be a homestead exemption for owner-occupied residential and commercial mixed-use (class 5) real estate in an amount not to exceed ten percent (10%) of the assessed value.
  • 44-5-65. East Greenwich – Homestead exemption.
  • (a) The town council of the town of East Greenwich is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of East Greenwich and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. The exemption only applies to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units. In order to determine compliance with the homestead exemption as outlined in this section,
  • LC001783 - Page 2of 5 the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  • (a) The town council of the town of East Greenwich is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of East Greenwich and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. The exemption only applies to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  • (b) In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town council of the town of East Greenwich, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.
  • 44-5-70. East Providence – Homestead exemption.
  • (a) The city council of the city of East Providence is authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the city of East Providence and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed fifteen percent (15%) of the assessed value. The exemption only applies to property used exclusively for residential purposes, and improved with a dwelling containing less than four (4) units. In order to determine compliance with the homestead exemption as outlined in this section, the city council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  • (b) In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town council of the city of East Providence, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.
  • 44-5-80. Homestead exemption in the town of West Greenwich.
  • (a) Notwithstanding any other provisions of the general or special laws to the contrary, the town council of the town of West Greenwich is authorized to annually fix the amount, if any of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of West Greenwich and to grant homestead exemptions to the owner or owners of residential real estate in an amount not to exceed forty percent (40%) of the assessed value. The exemption only applies to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide by ordinance rules and regulations governing eligibility for the exemption established by this section.
  • (b) In the event property granted an exemption under this section is sold or transferred
  • LC001783 - Page 3of 5 during the year for which the exemption is claimed, the town council of the town of West Greenwich, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.
  • (b) In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town council of the town of West Greenwich, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.
  • 44-5-85. Narragansett homestead exemption.
  • (a) The town council of the town of Narragansett is authorized to annually fix the amount, if any, of a homestead exemption, with respect to assessed value, from localtaxation on taxable real property used for residentialpurposes or mixed purposes, defined as a combination of residential and commercial uses, in the town of Narragansett, and to grant homestead exemptions to the owner, or owners, of residential real estate, or combination residentialand commercialreal estate, in an amount not to exceed ten percent (10%) of the assessed value. The exemption shall apply to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units, or real property used for a combination of residential and commercial uses. When real property is used for mixed purposes, the percentage of the assessed value shall be a prorated amount. The prorated amount shall be the percentage of square feet of the parcel used for residential purposes, multiplied by the percentage of the homestead exemption. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  • (b) In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town councilof the town of Narragansett, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.
  • SECTION 2. This act shalltake effect on August 1, 2017.
  • (a) The town council of the town of Narragansett is authorized to annually fix the amount, if any, of a homestead exemption, with respect to assessed value, from local taxation on taxable real property used for residential purposes or mixed purposes, defined as a combination of residential and commercial uses, in the town of Narragansett, and to grant homestead exemptions to the owner, or owners, of residential real estate, or combination residential and commercial real estate, in an amount not to exceed ten percent (10%) of the assessed value. The exemption shall apply to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units, or real property used for a combination of residential and commercial uses. When real property is used for mixed purposes, the percentage of the assessed value shall be a prorated amount. The prorated amount shall be the percentage of square feet of the parcel used for residential purposes, multiplied by the percentage of the homestead exemption. In order to determine compliance with the homestead exemption as outlined in this section, the town council shall provide, by resolution or ordinance, rules and regulations governing eligibility for the exemption established by this section.
  • (b) In the event property granted an exemption under this section is sold or transferred during the year for which the exemption is claimed, the town council of the town of Narragansett, upon approval of the town council, may provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled to claim an exemption.
  • SECTION 2. This act shall take effect on August 1, 2018.
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  • LC001783
  • LC001783/SUB A
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  • LC001783 - Page 4of 5
  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • A N A C T
  • RELATING TO TAXATION - LEVY AND ASSESSMENT OF LOCAL TAXES
  • ***
  • This act would provide for a proration of the homestead exemption in cases where title to property passes from those not entitled to claim an exemption to those who are entitled.
  • This act would take effect on August 1, 2017. ======== LC001783 ========
  • LC001783 - Page 5of 5
  • This act would take effect on August 1, 2018. ======== LC001783/SUB A ========

Votes

NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the House or Senate Journal from the day of the vote.

Floor vote for Passage

June 21, 2017 at 5:09pm
Yeas: 34 / Nays: 0 / Not voting: 3 / Recused: 0
Legislator Vote
Sen. Algiere Y
Sen. Archambault Y
Sen. Calkin Y
Sen. Ciccone Y
Sen. Conley Y
Sen. Cote Y
Sen. Coyne Y
Sen. Crowley Y
Sen. DaPonte Y
Sen. DiPalma Y
Sen. Doyle NV
Sen. Felag Y
Sen. Fogarty Y
Sen. Gallo Y
Sen. Gee Y
Sen. Goldin NV
Sen. Goodwin Y
Sen. Jabour Y
Sen. Kettle Y
Sen. Lombardi Y
Sen. Lombardo Y
Sen. Lynch Prata Y
Sen. McCaffrey NV
Sen. Metts Y
Sen. Miller Y
Sen. Morgan Y
Sen. Nesselbush Y
Sen. Paolino Y
Sen. Pearson Y
Sen. Picard Y
Sen. Quezada Y
Sen. Raptakis Y
Sen. Ruggerio Y
Sen. Satchell Y
Sen. Seveney Y
Sen. Sheehan Y
Sen. Sosnowski Y

Floor vote for PASSAGE

June 29, 2017 at 5:01pm
Yeas: 68 / Nays: 0 / Not voting: 7 / Recused: 0
Legislator Vote
Rep. Abney Y
Rep. Ackerman Y
Rep. Ajello Y
Rep. Almeida Y
Rep. Amore Y
Rep. Azzinaro Y
Rep. Barros NV
Rep. Bennett Y
Rep. Blazejewski Y
Rep. Canario Y
Rep. Carson Y
Rep. Casey Y
Rep. Casimiro Y
Rep. Chippendale Y
Rep. Corvese Y
Rep. Costantino NV
Rep. Coughlin NV
Rep. Craven Y
Rep. Cunha NV
Rep. Diaz Y
Rep. Donovan Y
Rep. Edwards Y
Rep. Fellela Y
Rep. Filippi Y
Rep. Fogarty Y
Rep. Giarrusso Y
Rep. Handy Y
Rep. Hearn Y
Rep. Hull Y
Rep. Jacquard Y
Rep. Johnston Y
Rep. Kazarian NV
Rep. Keable Y
Rep. Kennedy Y
Rep. Knight Y
Rep. Lancia Y
Rep. Lima Y
Rep. Lombardi Y
Rep. Maldonado Y
Rep. Marshall Y
Rep. Marszalkowski Y
Rep. Mattiello Y
Rep. McEntee Y
Rep. McKiernan Y
Rep. McLaughlin Y
Rep. McNamara Y
Rep. Mendonca Y
Rep. Messier Y
Rep. Morgan Y
Rep. Morin Y
Rep. Nardolillo Y
Rep. Newberry Y
Rep. Nunes Y
Rep. O'Brien Y
Rep. O'Grady Y
Rep. Perez Y
Rep. Phillips NV
Rep. Price NV
Rep. Quattrocchi Y
Rep. Ranglin-Vassell Y
Rep. Regunberg Y
Rep. Roberts Y
Rep. Ruggiero Y
Rep. Serpa Y
Rep. Shanley Y
Rep. Shekarchi Y
Rep. Slater Y
Rep. Solomon Y
Rep. Tanzi Y
Rep. Tobon Y
Rep. Ucci Y
Rep. Vella-Wilkinson Y
Rep. Walsh Y
Rep. Williams Y
Rep. Winfield Y

Floor vote for Passage In Concurrence

June 30, 2017 at 7:03pm
Yeas: 35 / Nays: 0 / Not voting: 2 / Recused: 0
Legislator Vote
Sen. Algiere Y
Sen. Archambault Y
Sen. Calkin Y
Sen. Ciccone Y
Sen. Conley Y
Sen. Cote Y
Sen. Coyne Y
Sen. Crowley NV
Sen. DaPonte Y
Sen. DiPalma Y
Sen. Doyle NV
Sen. Felag Y
Sen. Fogarty Y
Sen. Gallo Y
Sen. Gee Y
Sen. Goldin Y
Sen. Goodwin Y
Sen. Jabour Y
Sen. Kettle Y
Sen. Lombardi Y
Sen. Lombardo Y
Sen. Lynch Prata Y
Sen. McCaffrey Y
Sen. Metts Y
Sen. Miller Y
Sen. Morgan Y
Sen. Nesselbush Y
Sen. Paolino Y
Sen. Pearson Y
Sen. Picard Y
Sen. Quezada Y
Sen. Raptakis Y
Sen. Ruggerio Y
Sen. Satchell Y
Sen. Seveney Y
Sen. Sheehan Y
Sen. Sosnowski Y