R.I. Gen. Laws § 44-5-11.8 — Tax classification

(a) Upon the completion of any comprehensive revaluation or any update, in accordance
with § 44-5-11.6, any city or town may adopt a tax classification plan, by ordinance, with the following
limitations:
(1) The designated classes of property shall be limited to the classes as defined in subsection
(b) of this section.
(2) The effective tax rate applicable to any class, excluding class 4, shall not exceed
by fifty percent (50%) the rate applicable to any other class, except in the city
of Providence and the town of Glocester and the town of East Greenwich; however, in
the year following a revaluation or statistical revaluation or update, the city or
town council of any municipality may, by ordinance, adopt tax rates for the property
class for all ratable tangible personal property no greater than twice the rate applicable
to any other class, provided that the municipality documents to, and receives written
approval from, the office of municipal affairs that the rate difference is necessary
to ensure that the estimated tax levy on the property class for all ratable tangible
personal property is not reduced from the prior year as a result of the revaluation
or statistical revaluation.
(3) Any tax rate changes from one year to the next shall be applied 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 and the town of East Greenwich.
(4) Notwithstanding subsections (a)(2) and (a)(3) of this section, the tax rates applicable
to wholesale and retail inventory within Class 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 4, as defined in subsection
(b) of this section, are governed by § 44-34.1-1 [repealed].
(6) The provisions of chapter 35 of this title relating to property tax and fiscal disclosure
apply to the reporting of, and compliance with, these classification restrictions.
(b) Classes of property.
(1) Class 1: Residential real estate consisting of no more than five (5) dwelling units;
land classified as open space; and dwellings on leased land including mobile homes.
In the city of Providence, this class may also include residential properties containing
partial commercial or business uses and residential real estate of more than five
(5) dwelling units.
(i) A homestead exemption provision is also authorized within this class; provided however,
that the actual, effective rate applicable to property qualifying for this exemption
shall be construed as the standard rate for this class against which the maximum rate
applicable to another class shall be determined, except in the town of Glocester and
the city of Providence.
(ii) In lieu of a homestead exemption, any city or town may divide this class into non-owner
and owner-occupied property and adopt separate tax rates in compliance with the within
tax rate restrictions; provided, however, that the owner-occupied rate shall be construed
as the standard rate for this class against which the maximum rate applicable to another
class shall be determined, except in the town of Glocester and the city of Providence.
(2) Class 2: Commercial and industrial real estate; residential properties containing
partial commercial or business uses; and residential real estate of more than five
(5) dwelling units. In the city of Providence, properties containing partial commercial
or business uses and residential real estate of more than five (5) dwelling units
may be included in Class 1.
(3) Class 3: All ratable, tangible personal property.
(4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter
34 of this title.
(c) The town council of the town of Glocester and the town council of the town of East
Greenwich may, by ordinance, provide for, and adopt, a tax rate on various classes
as they shall deem appropriate. Provided, that the tax rate for Class 2 shall not
be more than two (2) times the tax rate of Class 1 and the tax rate applicable to
Class 3 shall not exceed the tax rate of Class 1 by more than two hundred percent
(200%). Glocester shall be able to establish homestead exemptions up to fifty percent
(50%) of value and the calculation provided in subsection (b)(1)(i) shall not be used
in setting the differential tax rates.
(d) Notwithstanding the provisions of subsection (a) of this section, the town council
of the town of Middletown may hereafter, by ordinance, adopt a tax classification
plan in accordance with the provisions of subsections (a) and (b) of this section,
to be applicable to taxes assessed on or after the assessment date of December 31,
2002.
(e) Notwithstanding the provisions of subsection (a) of this section, the town council
of the town of Little Compton may hereafter, by ordinance, adopt a tax classification
plan in accordance with the provisions of subsections (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 December 31,
2004.
(f) Notwithstanding the provisions of subsection (a) of this section, the town council
of the town of Scituate may hereafter, by ordinance, change its tax assessment from
fifty percent (50%) of value to one hundred percent (100%) of value on residential
and commercial/industrial/mixed-use property, while tangible property is assessed
at one hundred percent (100%) of cost, less depreciation; provided, however, the tax
rate for Class 3 (tangible) property shall not exceed the tax rate for Class 1 (residential)
property by more than two hundred thirteen percent (213%). This provision shall apply
whether or not the fiscal year is also a revaluation year.
(g) Notwithstanding the provisions of subsections (a) and (b) of this section, the town
council of the town of Coventry may hereafter, by ordinance, adopt a tax classification
plan providing that Class 1, as set forth in subsection (b) “Classes of Property”
of this section, may also include residential properties containing commercial or
business uses, such ordinance to be applicable to taxes assessed on or after the assessment
date of December 31, 2014.
(h) Notwithstanding the provisions of subsection (a) of this section, the town council
of the town of East Greenwich may hereafter, by ordinance, adopt a tax classification
plan in accordance with the provisions of subsections (a) and (b) of this section,
to be applicable to taxes assessed on or after the assessment date of December 31,
2018. Further, the East Greenwich town council may adopt, repeal, or modify that tax
classification plan for any tax year thereafter, notwithstanding the provisions of
subsection (a) of this section.
(i) Notwithstanding the provisions of subsection (a) of this section, the town council
of the town of Middletown may hereafter, by ordinance, adopt a tax classification
plan in accordance with the provisions of subsections (a) and (b) of this section,
to be applicable to taxes assessed on or after the assessment date of December 31,
2022. If, in lieu of a homestead exemption, the town of Middletown adopts a tax classification
plan that divides the class consisting of residential real estate into non-owner and
owner-occupied property and adopts separate tax rates in compliance with the tax rate
restrictions, the town of Middletown, by ordinance or resolution, shall provide rules
and regulations including, but not limited to, those governing the division and definition
of non-owner and owner-occupied properties.
(j) Notwithstanding the provisions of subsection (a) of this section, the town council
of the town of New Shoreham may hereafter, by ordinance, adopt a tax classification
plan in accordance with the provisions of subsections (a) and (b) of this section,
to be applicable to taxes assessed on or after the assessment date of December 31,
2023. If, in lieu of a homestead exemption, the town of New Shoreham adopts a tax
classification plan which divides the class consisting of residential real estate
into non-owner and owner-occupied property and adopts separate tax rates in compliance
with the tax rate restrictions, the town of New Shoreham, by ordinance or resolution,
shall provide rules and regulations including, but not limited to, those governing
the division and definition of non-owner and owner-occupied properties.
(k) Notwithstanding the provisions of subsection (a) of this section, the town council
of the town of Bristol may hereafter, by ordinance, adopt a tax classification plan
in accordance with the provisions of subsections (a) and (b) of this section, to be
applicable to taxes assessed on or after the assessment date of December 31, 2023.
Further, the Bristol town council may adopt, repeal, or modify that tax classification
plan for any tax year thereafter, notwithstanding the provisions of subsection (a)
of this section.
( l ) The city council of the city of Providence may, by ordinance, provide for, and adopt,
a tax rate on various classes as they shall deem appropriate. Provided, that the provisions
of § 44-5-11.18(4) shall apply.