§ 44-5-11.8 - Tax classification.
SECTION 44-5-11.8
§ 44-5-11.8 Tax classification. – (a) Upon the completion of any comprehensive revaluation or any update, inaccordance with § 44-5-11.6, any city or town may adopt a taxclassification plan, by ordinance, with the following limitations:
(1) The designated classes of property shall be limited tothe four classes as defined in subsection (b) of this section.
(2) The effective tax rate applicable to any class excludingclass 4 shall not exceed by fifty percent (50%) the rate applicable to anyother class, except in the city of Providence, and the town of Glocester;however, in the year following a revaluation or statistical revaluation orupdate, the city or town council of any municipality may, by ordinance, adopttax rates for the property class for all ratable tangible personal property nogreater than twice the rate applicable to any other class provided that themunicipality documents to, and receives written approval from the office ofmunicipal affairs that the rate difference is necessary to ensure that theestimated tax levy on the property class for all ratable tangible personalproperty is not reduced from the prior year as a result of the revaluation orstatistical revaluation.
(3) Any tax rate changes from one year to the next shall beapplied such that the same percentage rate change is applicable to all classes,excluding class 4, except in the city of Providence, and the town of Glocester.
(4) Notwithstanding subdivisions (2) and (3) of thissubsection, the tax rates applicable to wholesale and retail inventory withinClass 3 as defined in subsection (b) of this section are governed by §44-3-29.1.
(5) The tax rates applicable to motor vehicles within Class 4as defined in subsection (b) of this section are governed by § 44-34.1-1.
(6) The provisions of chapter 35 of this title relating toproperty tax and fiscal disclosure applies to the reporting of and compliancewith these classification restrictions.
(1) Class 1: Residential real estate consisting of no morethan five (5) dwelling units, land classified as open space, and dwellings onleased land including mobile homes. In the city of Providence, this class mayalso include residential properties containing partial commercial or businessuses and residential real estate of more than five (5) dwelling units. Ahomestead exemption provision is also authorized within this class, providedhowever, that the actual effective rate applicable to property qualifying forthis exemption shall be construed as the standard rate for this class againstwhich the maximum rate applicable to another class shall be determined, exceptin the city of Providence, and the town of Glocester.
(2) Class 2: Commercial and industrial real estate,residential properties containing partial commercial or business uses andresidential real estate of more than five (5) dwelling units. In the city ofProvidence, properties containing partial commercial or business uses andresidential real estate of more than five (5) dwelling units may be included inClass 1.
(3) Class 3: All ratable tangible personal property.
(4) Class 4: Motor vehicles and trailers subject to theexcise tax created by chapter 34 of this title.
(c) The city council of the city of Providence, and the towncouncil of the town of Glocester may by ordinance provide for and adopt a taxrate on various classes as it shall deem appropriate. Providence and Glocestershall be able to establish homestead exemptions up to fifty percent (50%) ofvalue. The calculation provided in subsection (b)(1)(i) shall not be used insetting the differential tax rates. The tax rate for Class 2 shall not be morethan two times the tax rate of Class 1; the tax rate applicable to Class 3shall not exceed the tax rate of Class 1 by more than two hundred percent(200%).
(d) Notwithstanding the provisions of subsection (a) of thissection the town council of the town of Middletown may hereafter, by ordinance,adopt a tax classification plan in accordance with the provisions ofsubsections (a) and (b) of this section, to be applicable to taxes assessed onor after the assessment date of December 31, 2002.
(e) Notwithstanding the provisions of subsection (a) of thissection, the town council of the town of Little Compton may hereafter, byordinance, adopt a tax classification plan in accordance with the provisions ofsubsections (a) and (b) of this section and the provisions of § 44-5-79,to be applicable to taxes assessed on or after the assessment date of December31, 2004.