TITLE 44
Taxation
CHAPTER 44-3
Property Subject to Taxation
SECTION 44-3-9
§ 44-3-9 Exemption or stabilizing of taxes
on property used for manufacturing, commercial, or residential purposes.
(a)(1) Except as provided in this section, the electors of any city or town
qualified to vote on a proposition to appropriate money or impose a tax when
legally assembled, may vote to authorize the city or town council, for a period
not exceeding twenty (20) years, and subject to the conditions as provided in
this section, to exempt from payment, in whole or in part, real and personal
property which has undergone environmental remediation, is historically
preserved, or is used for affordable housing, manufacturing, commercial, or
residential purposes, or to determine a stabilized amount of taxes to be paid
on account of the property, notwithstanding the valuation of the property or
the rate of tax; provided, that after public hearings, at least ten (10) days'
notice of which shall be given in a newspaper having a general circulation in
the city or town, the city or town council determines that:
(i) Granting of the exemption or stabilization will inure to
the benefit of the city or town by reason of:
(A) The willingness of the manufacturing or commercial
concern to locate in the city or town, or of individuals to reside in such an
area; or
(B) The willingness of a manufacturing firm to expand
facilities with an increase in employment or the willingness of a commercial or
manufacturing concern to retain or expand its facility in the city or town and
not substantially reduce its work force in the city or town; or
(C) An improvement of the physical plant of the city or town
which will result in a long-term economic benefit to the city or town and
state; or
(D) An improvement which converts or makes available land or
facility that would otherwise be not developable or difficult to develop
without substantial environmental remediation; or
(ii) Granting of the exemption or stabilization of taxes will
inure to the benefit of the city or town by reason of the willingness of a
manufacturing or commercial or residential firm or property owner to construct
new or to replace, reconstruct, convert, expand, retain or remodel existing
buildings, facilities, machinery, or equipment with modern buildings,
facilities, fixtures, machinery, or equipment resulting in an increase or
maintenance in plant, residential housing or commercial building investment by
the firm or property owned in the city or town;
(2) Provided that should the city or town council make the
determination in subparagraph (1)(i)(B) of this subsection, any exemption or
stabilization may be granted as to new buildings, fixtures, machinery, or
equipment for new buildings, firms or expansions, and may be granted as to
existing buildings, fixtures, machinery and equipment for existing employers in
the city or town.
(b) Cities shall have the same authority as is granted to
towns except that authority granted to the qualified electors of a town and to
town councils shall be exercised in the case of a city by the city council.
(c) For purposes of this section, "property used for
commercial purposes" means any building or structures used essentially for
offices or commercial enterprises.
(d) Except as provided in this section, property, the payment
of taxes on which has been so exempted or which is subject to the payment of a
stabilized amount of taxes, shall not, during the period for which the
exemption or stabilization of the amount of taxes is granted, be further liable
to taxation by the city or town in which the property is located so long as the
property is used for the manufacturing or commercial, or residential purposes
for which the exemption or stabilized amount of taxes was made.
(e) Notwithstanding any vote of the qualified electors of a
town and findings of a town council or of any vote and findings by a city
council, the property shall be assessed for and shall pay that portion of the
tax, if any, assessed by the city or town in which the real or personal
property is located, for the purpose of paying the indebtedness of the city or
town and the indebtedness of the state or any political subdivision of the
state to the extent assessed upon or apportioned to the city or town, and the
interest on the indebtedness, and for appropriation to any sinking fund of the
city or town, which portion of the tax shall be paid in full, and the taxes so
assessed and collected shall be kept in a separate account and used only for
that purpose.
(f) Nothing in this section shall be deemed to permit the
exemption or stabilization provided in this section for any manufacturing or
commercial concern relocating from one city or town within the state of Rhode
Island to another.
History of Section.
(G.L. 1896, ch. 44, §§ 4, 5; G.L. 1909, ch. 56, §§ 4, 5;
P.L. 1916, ch. 1376, § 1; G.L. 1923, ch. 58, §§ 4, 5; G.L. 1938,
ch. 29, §§ 4, 5; G.L. 1956, § 44-3-9; P.L. 1962, ch. 135, §
1; P.L. 1965, ch. 37, § 1; P.L. 1966, ch. 53, § 1; P.L. 1994, ch.
402, § 1; P.L. 1996, ch. 257, § 1; P.L. 1996, ch. 293, § 1; P.L.
1998, ch. 106, § 1; P.L. 2006, ch. 347, § 3; P.L. 2006, ch. 466,
§ 3.)