The bill amends Section 44-5-20.16 of the General Laws in Chapter 44-5, which pertains to the levy and assessment of local taxes in Smithfield. It introduces new provisions that authorize the town's assessor to conduct a full and fair cash valuation of property classes as identified in the bill. The assessor is required to determine the percentage of the tax levy to be apportioned to each class of property and to apply tax rates sufficient to produce the proportion of the total tax levy, thereby allowing for a more equitable distribution of tax burdens among different property types.

The bill redefines the classifications of property as follows: Class 1 includes residential real estate consisting of no more than five dwelling units, land classified as open space, and dwellings on leased land including mobile homes; Class 2 encompasses commercial and industrial real estate, residential properties containing partial commercial or business uses, and residential real estate with more than five dwelling units; Class 3 consists of all ratable tangible personal property excluding motor vehicles and trailers.

The previous language regarding uniform tax rates for different classes and caps on tax rates for tangible personal property has been removed. This legislative change aims to create a fairer taxation system that reflects changes in property values and ensures equitable treatment between residential and commercial properties. The act will take effect upon passage.

Statutes affected:
6395: 44-5-20.16