The bill amends Section 44-5-12 of the General Laws in Chapter 44-5, titled "Levy and Assessment of Local Taxes," to make several changes to how real property is assessed for taxation purposes. The bill specifies that all real property subject to taxation shall be assessed at its full and fair cash value or at a uniform percentage thereof, not to exceed 100%. It includes provisions for properties encumbered by certain covenants, farmland, forest, or open space land, and introduces exemptions for residential property improvements in Warwick and Central Falls. The bill also addresses the assessment of tangible property and renewable energy resources, stating that the presence of renewable energy resources should not lead to reclassification, revaluation, or reassessment of the real property, except for farmland. It exempts new construction on development property from tax assessment at full and fair cash value under certain conditions and defines "development property."

The bill introduces a new insertion that affects the assessment of real estate classified as low- and moderate-income housing. It mandates that assessors use the last current sales price within the last five years as the assessed value. If the property has not been sold within the last five years, the assessed value can be based on the newly calculated maximum sales price determined by the property's monitoring agent. This assessed value will remain for the next five years or until the next resale, whichever comes first. The bill also includes provisions for informing landowners about additional taxes for changing the use of land classified as farm, forest, or open space, and it maintains the fixed value assessment of wholesale and retail inventory as established in fiscal year 1999. The act would take effect upon passage and aims to limit real estate tax assessments for low- and moderate-income housing units to the last current sales price within a five-year period, with an alternative assessment procedure for properties with a last current sales price greater than five years.

Statutes affected:
2571: 44-5-12