§ 44-5-42 - Exemption of certain farm property.
SECTION 44-5-42
§ 44-5-42 Exemption of certain farmproperty. – (a) All farm machinery, including motor vehicles with farm registration plates,is exempt from taxation; provided, that any town or city is entitled toreimbursement by the state in an amount equal to the amount levied on the valueof the farm machinery in excess of the value of ten thousand dollars($10,000.00) based upon assessments on December 31, 1982.
(b) Livestock and poultry which are actually and exclusivelyused in farming, when owned and kept in this state by any farmer or group offarmers operating as a unit, a partnership, or a corporation, a majority of thestock of which corporation is held by members of a family actively engaged infarm operations, are exempt from local property taxation; provided, that theprincipal means of livelihood of each farmer whether operating individually oras one of a group, partnership or corporation is derived from the farmingoperation. Only one exemption is allowed to each farmer, group of farmers,partnership, or corporation.
(c) Richmond. All real property including all realestate, buildings and improvements on the property which is not used for apersonal residence and is actually and exclusively used in farming by aqualified farmer may be exempted from taxation by the town of Richmond. Forpurposes of this section, a "qualified farmer" is an individual, partnership orcorporation who operates a farm and has filed a 1040F U.S. Internal Revenueform or similar document with the Internal Revenue Service, has a state ofRhode Island farm tax number, and has earned at least ten thousand dollars($10,000) gross income on farm products in each of the preceding three (3)years, property defined as either farm, forest or open space land, pursuant tochapter 27 of this title. Any sale of exempted land, or portion of the land,incurs at the time of sale a penalty of twice the total amount of taxesexempted. The assessed penalty is due and payable to the town of Richmond,which would grant the exemption at the time of sale of the property. A sale ofland to another qualified farmer or use according to this section is exemptedfrom the penalty.
(d) Any taxpayer or owner which allows its real property tobe used by a qualified owner in a manner consistent with use defined insubsection (c) may be eligible for the exemption established by this sectionfor the duration of use by a qualified farmer. The tax assessor may prorate theexemption according to actual use. The tax assessor may require evidence ofactual use, including, but not limited to, a lease, to substantiate theexemption.
(e) Cities and towns may tax farm buildings at a rate thatreflects the actual costs incurred by the city or town in services to thosebuildings.
(f) All greenhouses constructed after January 1, 2006, oraltered or repaired after January 1, 2006, where the cost of the alterations orrepairs is equal to or greater than fifty percent (50%) of the physical valueof the greenhouse, are exempt from taxation, provided that the greenhouse isused solely as an agriculture growing structure and provided further that theowner of the greenhouse operates a farm, has filed a 1040F, and has a current,valid Level II certificate of exemption as provided for in § 44-18-30.