§ 44-5-2 - Maximum levy.
SECTION 44-5-2
§ 44-5-2 Maximum levy. – (a) Through and including its fiscal year 2007, a city or town may levy a taxin an amount not more than five and one-half percent (5.5%) in excess of theamount levied and certified by that city or town for the prior year. Throughand including its fiscal year 2007, but in no fiscal year thereafter, theamount levied by a city or town is deemed to be consistent with the five andone-half percent (5.5%) levy growth cap if the tax rate is not more than onehundred and five and one-half percent (105.5%) of the prior year's tax rate andthe budget resolution or ordinance, as applicable, specifies that the tax rateis not increasing by more than five and one-half percent (5.5%) except asspecified in subsection (c) of this section. In all years when a revaluation orupdate is not being implemented, a tax rate is deemed to be one hundred fiveand one-half percent (105.5%) or less of the prior year's tax rate if the taxon a parcel of real property, the value of which is unchanged for purpose oftaxation, is no more than one hundred five and one-half percent (105.5%) of theprior year's tax on the same parcel of real property. In any year through andincluding fiscal year 2007 when a revaluation or update is being implemented,the tax rate is deemed to be one hundred five and one-half percent (105.5%) ofthe prior year's tax rate as certified by the division of property valuationand municipal finance in the department of revenue.
(b) In its fiscal year 2008, a city or town may levy a tax inan amount not more than five and one-quarter percent (5.25%) in excess of thetotal amount levied and certified by that city or town for its fiscal year2007. In its fiscal year 2009, a city or town may levy a tax in an amount notmore than five percent (5%) in excess of the total amount levied and certifiedby that city or town for its fiscal year 2008. In its fiscal year 2010, a cityor town may levy a tax in an amount not more than four and three-quarterspercent (4.75%) in excess of the total amount levied and certified by that cityor town in its fiscal year 2009. In its fiscal year 2011, a city or town maylevy a tax in an amount not more than four and one-half percent (4.5%) inexcess of the total amount levied and certified by that city or town in itsfiscal year 2010. In its fiscal year 2012, a city or town may levy a tax in anamount not more than four and one-quarter percent (4.25%) in excess of thetotal amount levied and certified by that city or town in its fiscal year 2011.In its fiscal year 2013 and in each fiscal year thereafter, a city or town maylevy a tax in an amount not more than four percent (4%) in excess of the totalamount levied and certified by that city or town for its previous fiscal year.
(c) The division of property valuation in the department ofrevenue shall monitor city and town compliance with this levy cap, issueperiodic reports to the general assembly on compliance, and makerecommendations on the continuation or modification of the levy cap on orbefore December 31, 1987, December 31, 1990, and December 31, every third yearthereafter. The chief elected official in each city and town shall provide tothe division of property and municipal finance within thirty (30) days of finalaction, in the form required, the adopted tax levy and rate and other pertinentinformation.
(d) The amount levied by a city or town may exceed thepercentage increase as specified in subsection (a) or (b) of this section ifthe city or town qualifies under one or more of the following provisions:
(1) The city or town forecasts or experiences a loss in totalnon-property tax revenues and the loss is certified by the department ofrevenue.
(2) The city or town experiences or anticipates an emergencysituation, which causes or will cause the levy to exceed the percentageincrease as specified in subsection (a) or (b) of this section. In the event ofan emergency or an anticipated emergency, the city or town shall notify theauditor general who shall certify the existence or anticipated existence of theemergency. Without limiting the generality of the foregoing, an emergency shallbe deemed to exist when the city or town experiences or anticipates healthinsurance costs, retirement contributions or utility expenditures which exceedthe prior fiscal year's health insurance costs, retirement contributions orutility expenditures by a percentage greater than three (3) times thepercentage increase as specified in subsection (a) or (b) of this section.
(3) A city or town forecasts or experiences debt servicesexpenditures which exceed the prior year's debt service expenditures by anamount greater than the percentage increase as specified in subsection (a) or(b) of this section and which are the result of bonded debt issued in a mannerconsistent with general law or a special act. In the event of the debt serviceincrease, the city or town shall notify the department of revenue which shallcertify the debt service increase above the percentage increase as specified insubsection (a) or (b) of this section the prior year's debt service. No actionapproving or disapproving exceeding a levy cap under the provisions of thissection affects the requirement to pay obligations as described in subsection(d) of this section.
(4) The city or town experiences substantial growth in itstax base as the result of major new construction which necessitates eithersignificant infrastructure or school housing expenditures by the city or townor a significant increase in the need for essential municipal services and suchincrease in expenditures or demand for services is certified by the departmentof revenue.
(e) Any levy pursuant to subsection (d) of this section inexcess of the percentage increase specified in subsection (a) of this sectionshall be approved by the affirmative vote of at least four-fifths (4/5) of thefull membership of the governing body of the city or town or in the case of acity or town having a financial town meeting, the majority of the electorspresent and voting at the town financial meeting shall also approve the excesslevy.
(f) Nothing contained in this section constrains the paymentof present or future obligations as prescribed by § 45-12-1, and alltaxable property in each city or town is subject to taxation without limitationas to rate or amount to pay general obligation bonds or notes of the city ortown except as otherwise specifically provided by law or charter.