House Bill #8033 (2018)

AN ACT RELATING TO TOWNS AND CITIES -- COASTAL AND RIVERINE HOME PROTECTION

Enables cities and towns to provide property tax relief to individuals who take resiliency measures to rehabilitate their property because of flood hazards.

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  • 2018 – H 8033
  • 2018 – H 8033 SUBSTITUTE A
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  • LC005005
  • LC005005/SUB A/2
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  • S TATE OF RHODE IS L AND
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2018
  • ____________
  • A N A C T
  • RELATINGTO TOWNSAND CITIES– COASTAL AND RIVERINEHOMEPROTECTION
  • 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. 2018
  • ____________
  • A N A C T
  • RELATING TO TOWNS AND CITIES – COASTAL AND RIVERINE HOME PROTECTION
  • Introduced By: Representatives Carson, and Shekarchi
  • Date Introduced: March 30, 2018
  • Referred To: House Finance
  • It is enacted by the GeneralAssembly as follows:
  • SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby amended by adding thereto the following chapter:
  • CHAPTER 69
  • COASTAL AND RIVERINE HOME PROTECTION
  • 45-69-1. Findings.
  • (1) It is declared to be a public benefit to encourage the rehabilitation and renovation of structures in a municipality by increasing their resilience to storm surge, sea level rise and extreme precipitation.
  • (2) Flooding and storm-related erosion is causing problems for land owners on our open ocean coastline and rivers.
  • (3) Rhode Island has a strong coastalresources management program that has historically been very protective of naturalshorelines.
  • (4) The coastalresource management council (CRMC) created by chapter 23 of title 46 is the principal mechanism for management of the state's coastal resources. CRMC's efforts are essential to secure the rights of the people of Rhode Island to the use and enjoyment of the natural resources of the state as wellas the maintenance of property values located on our shorelines and rivers and the depreciating effect coastal and riverine flooding has on the property located thereon.
  • (5) The special study commission created by resolution No. 392 passed by the house of representatives at its January session A.D. 2015, and approved June 17, 2015 entitled "House Resolution Creating the Rhode Island House Commission on Economic Risk Due to Flooding and Sea Rise"has determined:
  • It is enacted by the General Assembly as follows:
  • SECTION 1. Title 45 of the General Laws entitled "TOWNS AND CITIES" is hereby amended by adding thereto the following chapter:
  • CHAPTER 69
  • COASTAL AND RIVERINE HOME PROTECTION
  • 45-69-1. Findings.
  • (1) It is declared to be a public benefit to encourage the rehabilitation and renovation of structures in a municipality by increasing their resilience to storm surge, sea level rise and extreme precipitation.
  • (2) Flooding and storm-related erosion is causing problems for land owners on our open ocean coastline and rivers.
  • (3) Rhode Island has a strong coastal resources management program that has historically been very protective of natural shorelines.
  • (4) The coastal resource management council (CRMC) created by chapter 23 of title 46 is the principal mechanism for management of the state's coastal resources. CRMC's efforts are essential to secure the rights of the people of Rhode Island to the use and enjoyment of the natural resources of the state as well as the maintenance of property values located on our shorelines and rivers and the depreciating effect coastal and riverine flooding has on the property located thereon.
  • (5) The special study commission created by resolution No. 392 passed by the house of representatives at its January session A.D. 2015, and approved June 17, 2015, entitled "House Resolution Creating the Rhode Island House Commission on Economic Risk Due to Flooding and Sea Rise" has determined:
  • (i) That one of the best ways to prevent property damage due to sea level rise and flooding is to fortify vulnerable assets;
  • (ii) That the state needs to develop an approach and develop a philosophy of resilience;
  • (iii) That the state uncover vulnerabilities and understand the economic value at risk using statistic and probability based models for sea levelrise; and
  • (iii) That the state uncover vulnerabilities and understand the economic value at risk using statistic and probability based models for sea level rise; and
  • (iv) That policymakers need to protect homeowners by incentivizing resilience thereby insuring our assets.
  • (6) A tax relief program for coastal and riverine properties subject to storm surge, sea level rise, riverine flooding and extreme precipitation is needed for sustainability and resiliency, stabilization of property values and the municipal tax base, as well as community revitalization to those communities which are determined by CRMC to be in an area likely to be affected by flooding.
  • (7) Or any other adaptation measure by CRMC as being appropriate to reduce damage from the risks of storm surge, sea levelrise and extreme precipitation.
  • 45-69-2. Coastal and riverine resilience - Tax credit.
  • (a) The various cities and towns may provide, by ordinance, a tax credit to be provided in this chapter against any tax imposed pursuant to the generallaws to the valuation of any parcelof real property as defined in § 45-31-8 which is located in an area determined by the coastal resource management council to be susceptible to flooding and which will or has required rehabilitation or renovation as a result of the damage caused by, or risk of damage from storm surge, sea levelrise, riverine flooding and extreme precipitation.
  • (b) The tax credit amount pursuant to this chapter shall be determined by the local tax assessors and based on the severity of the risk to the property and/or the amount of damage done to the property which is within an area determined by CRMC to be susceptible to flooding. The local tax assessors of the various cities and towns shall be authorized to develop a tax credit formula for issuing tax credits pursuant to this section by assessing the cost of sustainability and resiliency measures a taxpayer has performed to repair damage or are necessary to prevent future damage and may employ whatever services necessary including, but not limited to, real estate appraisers, construction professionals, or any other professional in property valuation, in determined the amount of the tax credit pursuant to this chapter.
  • (c) Tax credits allowed pursuant to this chapter shall be allowed for the taxable year in
  • LC005005 - Page 2of 4 which the rehabilitation or renovation occurs.
  • (d) If the amount of the tax credit exceeds the taxpayers total tax liability for the year in which the rehabilitation or renovation work occurred, the amount that exceeds the taxpayer's tax liability may be carried forward for credit against the taxes imposed for the succeeding ten (10) years, or until the full credit is used, whichever occurs first for the tax credits.
  • (e) The municipality implementing a tax credit for property located in a coastal or riverine area shall determine what resilience measures it deems qualifying for tax credits including, but not limited to, the following provisions derived from the Hazard Mitigation Assistance Unified Guidance publication issued by the Federal Emergency Management Agency Department of Homeland Security:
  • (1) Dry flood proofing of residential structures;
  • (2) Infrastructure retrofit;
  • (3) Mitigation reconstruction;
  • (4) Soil stabilization;
  • (5) Structuralelevation;
  • (6) Structuralretrofitting of existing buildings and facilities;
  • (7) Wind retrofit; and
  • (8) Any additional measures the Rhode Island Emergency Management Agency believes are imperative to preserving the coastal or riverine property and residential structures and which are reasonably expected to achieve their purpose.
  • (7) Or any other adaptation measure by CRMC as being appropriate to reduce damage from the risks of storm surge, sea level rise and extreme precipitation.
  • 45-69-2. Definitions.
  • (a) As used in this chapter the following words shall have the following meanings:
  • (1) "Demolition" means to completely destroy or raze a building. In cases in which a building is so severely damaged that it cannot be elevated, floodproofed, or relocated, or the building is in such poor condition and not worth the additional investment required to elevate, floodproof, or relocate. It is not technically feasible or cost effective to elevate or relocate some types of buildings, such as certain slab-on-grade buildings or masonry-type buildings.
  • (2) "Dry floodproofing of residential structures" means a structure is made watertight below the level that needs flood protection to prevent floodwaters from entering. Making the structure watertight requires sealing the walls with waterproof coatings, impermeable membranes, or a supplemental layer of masonry or concrete
  • (3) "Levees and floodwalls" means a long, narrow embankment usually built to protect land from flooding. If built of concrete or masonry the structure is usually referred to as a floodwall. Levees and floodwalls confine streamflow within a specified area to prevent flooding.
  • (4) "Relocation" means moving an entire building to another location on the same lot or to another lot, usually outside the floodplain. Relocation is a mitigation measure that can offer the greatest protection from future flooding.
  • (5) "Structural elevation" means various techniques used to raise the existing building to or above the base flood elevation (BFE). Elevation is a common technique for protecting an existing building in the special flood hazard area (SFHA).
  • (6) "Wet floodproofing" means a design method that allows water to move in the enclosed parts of a home's lower area, such as the crawlspace or an unoccupied area, and then out when water recedes.
  • (b) In interpreting the definitions listed in subsection (a) of this section to the tax assessments improvement exemption provided in this chapter, these definitions shall be applied consistent with the interpretation and meaning contained in the February 27, 2015 edition of the Hazard Mitigation Assistance Guidance manual published by the Federal Emergency Management Agency (FEMA), and any subsequent amendments or revisions to the manual, or as otherwise issued by FEMA, whichever is most current. The National Flood Insurance Program operated by FEMA may also be utilized for further clarification of these words.
  • 45-69-3. Coastal and riverine resilience - Tax assessment improvement exemption.
  • (a) The various cities and towns may provide by ordinance for an exemption on the increased assessed value of a property relating to improvements to protect against coastal and riverine flooding. Such exemption on improvements shall be as determined by the tax assessor after verification that the property is in an area that the coastal resource management council has determined is susceptible to flooding and which will or has required rehabilitation or renovation as a result of the damage caused by, or risk of damage from storm surge, sea level rise, riverine flooding and extreme precipitation, and that such improvements will result in reduced susceptibility to flood damage. Such coastal and riverine flooding improvement exemption shall apply until the next full revaluation of property in the city or town. Prior to receiving this exemption the local building inspector shall inspect and approve the plans to incorporate flood mitigation measures to the property.
  • (b) The tax exemption amount pursuant to this chapter shall be determined by the local tax assessors and based on the severity of the risk to the property and/or the amount of damage done to the property which is within an area determined by CRMC to be susceptible to flooding. The local tax assessors of the various cities and towns shall be authorized to develop a tax exemption formula for issuing tax exemptions pursuant to this section by assessing the cost of sustainability and resiliency measures a taxpayer has performed to repair damage, or are necessary to prevent future damage, and may employ whatever services necessary including, but not limited to, real estate appraisers, construction professionals, or any other professional in property valuation, in determining the amount of the tax exemption pursuant to this chapter.
  • (c) Tax exemptions allowed pursuant to this chapter shall be allowed for the taxable year in which the rehabilitation or renovation occurs.
  • (d) If the amount of the tax exemption exceeds the taxpayers total tax liability for the year in which the rehabilitation or renovation work occurred, the amount that exceeds the taxpayer's tax liability may be carried forward for exemption against the taxes imposed for the next full property evaluation, or until the full exemption is used, whichever occurs first for the tax exemptions.
  • (e) The municipality implementing a tax exemption for property located in a coastal or riverine area shall determine what resilience measures it deems qualifying for tax exemptions including, but not limited to, the following provisions derived from the Hazard Mitigation Assistance Unified Guidance publication issued by the Federal Emergency Management Agency Department of Homeland Security, as defined in § 45-69-2:
  • (1) Demolition;
  • (2) Dry floodproofing of residential structures;
  • (3) Levees and floodwalls;
  • (4) Relocation;
  • (5) Structural elevation;
  • (6) Wet floodproofing;
  • (7) Relocation or elevation of utility equipment from a basement that may become flooded; and
  • (8) Any additional measures the Rhode Island emergency management agency believes are imperative to preserving the coastal or riverine property and residential structures and which are reasonably expected to achieve their purpose.
  • 45-69-3. Severability.
  • If a court of competent jurisdiction shall adjudge to be invalid or unconstitutional any clause, sentence, paragraph, section or part of this chapter or the application of it to any person or circumstance, the adjudication shall not affect, impair, invalidate or nullify the remainder of this chapter, or the applications of this chapter, which can be given effect without the invalid provision application, but the effect of the court's adjudication shall be confined to the clause, sentence, paragraph, or section or part of this chapter, or application of it, which can be given effect without the invalid provision or application so adjudged to be invalid or unconstitutional.
  • SECTION 2. This act shalltake effect upon passage.
  • SECTION 2. This act shall take effect upon passage.
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  • LC005005
  • LC005005/SUB A/2
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  • LC005005 - Page 3of 4
  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T RELATINGTO TOWNSAND CITIES– COASTALAND RIVERINE HOMEPROTECTION
  • ***
  • This act would enable cities and towns to provide property tax relief to individuals who take resiliency measures to rehabilitate their property because of flood hazards.
  • This act would take effect upon passage. ======== LC005005 ========
  • LC005005 - Page 4of 4
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • RELATING TO TOWNS AND CITIES – COASTAL AND RIVERINE HOME PROTECTION
  • ***
  • This act would enable cities and towns to provide a tax exemption to individuals who take resiliency measures to rehabilitate their property because of flood hazards.
  • This act would take effect upon passage. ======== LC005005/SUB A/2 ========

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 20, 2018 at 9:14pm
Yeas: 56 / Nays: 14 / Not voting: 5 / 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 N
Rep. Blazejewski Y
Rep. Canario Y
Rep. Carson Y
Rep. Casey Y
Rep. Casimiro Y
Rep. Chippendale N
Rep. Corvese Y
Rep. Costantino Y
Rep. Coughlin Y
Rep. Craven Y
Rep. Cunha NV
Rep. Diaz Y
Rep. Donovan Y
Rep. Edwards Y
Rep. Fellela Y
Rep. Filippi N
Rep. Fogarty Y
Rep. Giarrusso N
Rep. Handy Y
Rep. Hearn Y
Rep. Hull Y
Rep. Jacquard Y
Rep. Johnston Y
Rep. Kazarian Y
Rep. Keable Y
Rep. Kennedy Y
Rep. Knight Y
Rep. Lancia N
Rep. Lima Y
Rep. Lombardi Y
Rep. Maldonado Y
Rep. Marshall N
Rep. Marszalkowski Y
Rep. Mattiello Y
Rep. McEntee Y
Rep. McKiernan Y
Rep. McLaughlin N
Rep. McNamara Y
Rep. Mendonca Y
Rep. Messier Y
Rep. Morgan N
Rep. Morin Y
Rep. Nardolillo N
Rep. Newberry N
Rep. Nunes NV
Rep. O'Brien N
Rep. O'Grady Y
Rep. Perez NV
Rep. Phillips Y
Rep. Price N
Rep. Quattrocchi N
Rep. Ranglin-Vassell Y
Rep. Regunberg Y
Rep. Roberts N
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 NV
Rep. Vella-Wilkinson Y
Rep. Walsh Y
Rep. Williams Y
Rep. Winfield Y