§ 44-45-2 - Legislative findings.
SECTION 44-45-2
§ 44-45-2 Legislative findings. – The general assembly finds and declares that the following conditions confrontRhode Island at this time:
(1) In 1982, the governor's advisory commission to study thefinancial operations of state and local governments found that "when the stateand local tax system is viewed in its totality, it becomes clear that propertytax relief and replacement is needed".
(2) Rhode Island has a serious over reliance on the propertytax, as evidenced by the facts that:
(i) Rhode Islanders paid forty-nine dollars and ninety-twocents ($49.92) per capita in property tax collections in fiscal year 1983,compared to a U.S. average of thirty-four dollars and seventy-one cents($34.71), ranking this state sixth highest in the nation;
(ii) Per one thousand dollars ($1,000) of personal income,property tax collections in Rhode Island equaled five hundred and thirty-sevendollars ($537) that year, compared to a three hundred and eighty-one dollar($381) U.S. average, placing the state ninth highest nationally; and
(iii) Rhode Island's cities and towns derived fifty-eight andnine-tenths percent (58.9%) of their own-source local general revenue from theproperty tax in fiscal year 1983, compared to an average of only twenty-eightand eight-tenths percent (28.8%) for all the states.
(3) In 1983-84, Rhode Island ranked only forty-thirdnationally in terms of state support for public elementary and secondaryschool, providing only thirty-six percent (36%) of these revenues.
(4) The state educational operations aid formula should begradually increased until the state and municipalities equally share the costof providing local education. The general assembly remains committed to thatobjective and intends to pursue that objective aggressively upon receipt andconsideration of the final report of the joint legislative committee toestablish a permanent education foundation aid formula in accordance with§ 16-7.2-2 of the general laws.
(5) The state should also share a greater portion of itseconomically sensitive growth taxes with its cities and towns in order tofurther shift the burden of funding essential municipal services from theproperty tax.
(6) The growth in property tax levies should be capped inaccordance with § 44-5-2 of the general laws as a quid pro quo forreceiving increased state aid to reduce reliance on the property tax.
(7) Cities and towns should be assisted in their efforts tocontrol school and municipal expenditures by appropriately amending statearbitration and school budgeting laws.