R.I. Gen. Laws § 44-5-38 — Rate of levy against tangible personal property consisting of manufacturing machinery and equipment acquired or used by a manufacturer

Tangible personal property consisting of manufacturing machinery and equipment acquired,
owned, or used by a manufacturer is subject to taxation at a uniform rate of assessment
not to exceed fifty percent (50%) of the full and fair cash value of the property.
The levy and assessment of the tax upon the manufacturer’s manufacturing machinery
and equipment is subject to, and limited to, the following:
(1)(i) Assessment and levy on manufacturer’s machinery and equipment. In assessing the valuation
of the property and apportioning the levy of the tax on December 31, 1968, the assessors
in the several cities and towns shall not exceed seventy-five percent (75%) of the
total adjusted levy on the machinery, equipment, and inventories of all manufacturers
of the city or town as established by the division of local and metropolitan government
using the levy based on the assessment of the city or town as of December 31, 1966.
In apportioning the levy as established in this subdivision, the assessor may add
to the total adjusted levy, the increase in levy on manufacturer’s machinery, equipment,
and inventory occasioned by manufacturers found to be operating but not taxed in the
city or town as of December 31, 1966, or who have located in the city or town since
that date.
(ii) In apportioning the levy of the tax on manufacturers’ machinery and equipment within
a city or town for fiscal years ending after December 31, 1969, the assessors of any
city or town shall apportion the levy of the tax in an amount not to exceed one hundred
three and one-half percent (103.5%) of the total adjusted levy on manufacturer’s machinery
and equipment for the next prior fiscal year. In apportioning the levy of the tax,
as provided in this subdivision, the assessors of any city or town may add to the
total adjusted levy for the next prior fiscal year, the increase in levy on manufacturer’s
machinery and equipment occasioned by manufacturers who have located or who have increased
investment within the meaning of subdivision (3) in the city or town since the date
of the next prior assessment.
(2)(i) Assessment and levy on individual manufacturers. In assessing the valuation of the
property and apportioning the levy of the tax on December 31, 1968, the assessors
of the several cities and towns shall not exceed seventy-three and one-half percent
(73.5%) of the adjusted levy of the tax on the machinery, equipment, and inventory
of any manufacturer of the city or town for the next prior year. If the application
of the preceding provision results in the total tax levy thus obtained on manufacturers’
machinery and equipment of a city or town for the year for which the date of assessment
of valuations was December 31, 1968, as the assessment of valuations is established
under the provisions of the first paragraph of this section, being less in amount
than the amount of the total adjusted levy as computed in accordance with the seventy-five
percent (75%) limitation prescribed under the provisions of paragraph (1)(i) of this
section, the assessor of the city or town, for the purpose of bringing the total levy
on the machinery and equipment to an amount not exceeding the amount of the total
adjusted levy as computed by the seventy-five percent (75%) limitation, may apply
the amount of the total adjusted tax levy, as was thus limited and computed under
the provisions of paragraph (1)(i) of this section, to the total assessed valuation
as of December 31, 1968, as the valuation is established under the provisions of the
first paragraph of this section, on the machinery and equipment of all manufacturers
of the city or town, and apply the resulting classified tax rate to the assessed valuations
as of December 31, 1968, on the machinery and equipment of each manufacturer of the
city or town.
(ii) In assessing the valuation of the property and apportioning the levy of the tax for
fiscal years ending after December 31, 1969, the assessors of the several cities and
towns shall not exceed one hundred five percent (105%) of the adjusted levy of the
tax on the machinery and equipment of any manufacturer for the next prior fiscal year.
(3) As to the property constituting an increase in investment, the limitations fixed in
subdivisions (1) and (2) of this section do not apply to that portion of the tax levy
on a manufacturer derived from a substantial increase in investment in additional
machinery and equipment or that portion of the tax levy applicable to the property
not previously taxed in the city or town. For the purposes of this section, “substantial”
means an investment in any one year equal to at least fifteen percent (15%) of the
sum of net book value plus accumulated reserves for depreciation of other machinery
and equipment of the manufacturer within the city or town.
(4) When a city or town has completed a revaluation of all ratable property by independent
professional appraisers since December 31, 1966, the assessor of the city or town
shall, in applying the preceding limitations, employ the levy and assessment made
for the fiscal year immediately following the completion of the revaluation in lieu
of the base established as previously established by the division of local and metropolitan
government; provided, that a base year later than a fiscal year commencing in 1969
is not employed.
(5) Nothing in this section affects any agreement for the stabilization or exemption of
local taxes entered into under the provisions of § 44-3-9; provided, that any agreement may be modified to take into account the effect of
§ 44-11-2 by the city or town council and the manufacturer without the necessity of meeting
the criteria and complying with the procedures established in § 44-3-9. Upon the expiration of any existing agreement, the tax on the property consisting
of manufacturers’ machinery, equipment, and inventory formerly stabilized or exempted
under the agreement shall be based upon a new assessment complying with all the terms
of this section.
(6) Each city or town has the option of using its general property tax rate in computing
its levy on machinery and equipment of manufacturers or any separate rate, which it
deems appropriate subject to the restrictions established in this section.
(7)(i) In order to assess accurately the impact of the provisions of this section upon the
several cities and towns and to provide necessary information for that purpose, each
manufacturer subject to taxation in any city or town shall submit to the division
of local and metropolitan government on or before October 1, 1966, a declaration report
on the value of machinery and equipment for each city or town in which the manufacturer
is located; the declaration reports shall be submitted on a form designed and furnished
by the division and shall provide for inclusion of the net book value and the accumulated
reserve for depreciation of machinery and equipment subject to local taxation, all
as reported in the manufacturers’ most recent Rhode Island corporate tax return. The
declaration report shall cover the most recent fiscal year of the taxpayer for which
the due date for the filing of a corporate tax return with the tax administrator is
prior to the date prescribed in this section for filing the report; provided, that
where a manufacturer files a corporate tax return with the tax administrator on or
prior to the date of October 1 for the fiscal year, the manufacturer shall file the
declaration report on or before October 1.
(ii) On or before October 1, 1968, and annually thereafter, each manufacturer shall file
with the office of the assessor of the city or town in which the property is situated,
a declaration report, as described in paragraph (1)(i) of this section, on a form
prescribed by the department of revenue and furnished to the local assessors. All
reports shall be treated confidentially by the assessor and employed by him or her
for assessment purposes only.
(iii) Failure to submit a declaration report to either the department of revenue or the
tax assessor of any city or town as required in subdivision (1)(i) subjects the manufacturer
to a penalty not to exceed ten percent (10%) of the tax on machinery and equipment
payable at the time when the taxes are due and payable as an addition to the tax due
in the next succeeding year and the penalty shall be so identified and listed on the
tax roll. Should a manufacturing establishment fail to submit a declaration report
for a second successive year, it is subject to a penalty not to exceed twenty-five
percent (25%) of its tax on machinery and equipment, payable as prescribed; should
a manufacturing establishment fail for a third successive year to file the declaration
report it is subject to a penalty not to exceed fifty percent (50%) of the tax on
its machinery and equipment, payable as prescribed; for subsequent successive years,
failure to file the declaration report subjects the manufacturing establishment to
a penalty not to exceed fifty percent (50%) of its tax on machinery and equipment,
payable as prescribed. As to any manufacturer failing to file a declaration report
with the local assessor as required in this section, the limitation of paragraph (2)(ii)
of this section shall not take effect until the assessment date next following the
date upon which the manufacturer first files a report with the assessor. In lieu of
the declaration report, any manufacturer subject to taxation for the first time in
any city or town of this state shall submit the information that is necessary to establish
its initial tax base and, in subsequent years, shall file the declaration report.
(8) In any case where the assessor of any city or town has reason to doubt the veracity
of the contents of any declaration report so filed, the report may be submitted to
the department of revenue, which shall compare the information contained in the report
with information on file with the division of taxation and advise the assessor as
to the veracity of the report.
(9) A manufacturer who stores or keeps on hand raw materials, work in process, and his
or her finished products in a storage place (as distinguished from finished products
which he or she holds for retail sale in any retail establishment operated by him
or her) in a city or town other than that in which his or her manufacturing plant
is located shall file on or before March 15, 1969, and annually thereafter on or before
each succeeding March 15, an inventory report on a form prescribed and furnished by
the department of revenue through the assessor, with the assessor of the city or town
where the raw materials and finished products are stored. The assessor of each city
or town shall notify all manufacturers of the city or town of the requirement for
filing the reports by publication in a newspaper of general circulation in the city
or town during the month of January, 1969, and during the same month in each year
thereafter. The report shall contain a true account of the raw materials, work in
process, and finished products that were manufactured by him or her in this state
as well as any other merchandise owned or possessed by him or her in the city or town
on December 31 next preceding the date specified for the filing of the inventory report.
The report must describe and specify the value of the raw materials, work in process,
and finished products that were manufactured as already stated and also the value
of all other merchandise stored in the city or town. Any manufacturer who fails or
refuses to file any inventory report at the time and in the manner prescribed in this
section is deemed to have waived the tax exemption provided for on the raw materials,
work in process, and finished products thus stored, whereupon, and notwithstanding
the provisions of § 44-3-3(20), the property is subject to taxation like all other taxable property. The provisions
of this subdivision shall not be construed to repeal § 44-5-15 or to limit the application of its provisions.
(10) A manufacturer who operates storage facilities for the storage of his raw materials,
work in process, and finished products in a city or town other than that in which
his or her manufacturing plant is located shall set forth in the declaration report,
as and in the manner prescribed in subdivision (7) of this section to be filed with
the assessor of the city or town where the storage facilities are located, any machinery
and equipment owned or possessed by him or her which is situated in or upon the storage
facilities for use in the operation of the storage facilities, or held there for use
in the operation of the manufacturing plant.
(11) The restrictions contained in this chapter shall not apply to the portion of the tax,
if any, assessed by the city or town for the purpose of paying the indebtedness of
the city or town and the indebtedness of the state or any political subdivision of
the state to the extent assessed upon or apportioned to the city or town, and the
interest thereon; and for appropriation to any sinking fund of the city or town (which
portion of the tax is paid in full).
(12) Any person who hires a person from public supported programs for persons with disabilities
and rehabilitated, shall receive a five hundred dollar ($500) credit per person hired;
provided, that the number of the persons increases the number of full-time employees
by three percent (3%) of the total numbers of persons employed the previous year.
(13) For purposes of this subdivision, in determining the total amount of the tax levy
on manufacturing machinery and equipment owned or used by a manufacturer on December
31, 1973, the assessors in the several cities and towns shall not exceed ninety percent
(90%) of the levy on the class of property made as of December 31, 1972; thereafter
annually commencing in 1974 on December 31, the assessors shall reduce the levy on
the class of property whether or not acquired subsequent to December 31, 1972, except
as provided in this section, as follows: to eighty percent (80%) of the December 31,
1972, levy on December 31, 1974; to seventy percent (70%) of the December 31, 1972,
levy on December 31, 1975; to sixty percent (60%) of the December 31, 1972, levy on
December 31, 1976; to fifty percent (50%) of the December 31, 1972, levy on December
31, 1977; to forty percent (40%) of the December 31, 1972, levy on December 31, 1978;
to thirty percent (30%) of the December 31, 1972, levy on December 31, 1979; to twenty
percent (20%) of the December 31, 1972, levy on December 31, 1980; to ten percent
(10%) of the December 31, 1972, levy on December 31, 1981 and to continue at ten percent
(10%) of the December 31, 1972, levy on December 31, 1982; and to five percent (5%)
of the December 31, 1972, levy on December 31, 1983; and thereafter the property is
exempt from taxation.