2006 -- S 3050 SUBSTITUTE A AS AMENDED

=======

LC03048/SUB A/3

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2006

____________

A N A C T

RELATING TO TAXATION -- PROPERTY TAXES

     Introduced By: Senators Paiva-Weed, J Montalbano, Alves, Lenihan, and Felag

     Date Introduced: April 27, 2006

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 44-5-2 of the General Laws in Chapter 44-5 entitled "Levy and

1-2

Assessment of Local Taxes" is hereby amended to read as follows:

1-3

     44-5-2. Maximum levy. -- (a) A Through and including its fiscal year 2007, a city and or

1-4

town may levy a tax in an amount not more than five and one-half percent (5.5%) in excess of the

1-5

amount levied and certified by that city or town for the prior year. Through and including its

1-6

fiscal year 2007, but in no fiscal year thereafter, the The amount levied by a city or town is

1-7

deemed to be consistent with the five and one-half percent (5.5%) levy growth cap if the tax rate

1-8

is not more than one hundred and five and one-half percent (105.5%) of the prior year's tax rate

1-9

and the budget resolution or ordinance, as applicable, specifies that the tax rate is not increasing

1-10

by more than five and one-half percent (5.5%) except as specified in subsection (c) of this

1-11

section. In all years when a revaluation or update is not being implemented, a tax rate is deemed

1-12

to be one hundred five and one-half percent (105.5%) or less of the prior year's tax rate if the tax

1-13

on a parcel of real property, the value of which is unchanged for purpose of taxation, is no more

1-14

than one hundred five and one-half percent (105.5%) of the prior year's tax on the same parcel of

1-15

real property. In any year through and including fiscal year 2007 when a revaluation or update is

1-16

being implemented, the tax rate is deemed to be one hundred five and one-half percent (105.5%)

1-17

of the prior year's tax rate as certified by the division of local government assistance in the

1-18

department of administration.

1-19

     (b) In its fiscal year 2008, a city or town may levy a tax in an amount not more than five

2-1

and one-quarter percent (5.25%) in excess of the total amount levied and certified by that city or

2-2

town for its fiscal year 2007. In its fiscal year 2009, a city or town may levy a tax in an amount

2-3

not more than five percent (5%) in excess of the total amount levied and certified by that city or

2-4

town for its fiscal year 2008. In its fiscal year 2010, a city or town may levy a tax in an amount

2-5

not more than four and three-quarters percent (4.75%) in excess of the total amount levied and

2-6

certified by that city or town in its fiscal year 2009. In its fiscal year 2011, a city or town may

2-7

levy a tax in an amount not more than four and one-half percent (4.5%) in excess of the total

2-8

amount levied and certified by that city or town in its fiscal year 2010. In its fiscal year 2012, a

2-9

city or town may levy a tax in an amount not more than four and one-quarter percent (4.25%) in

2-10

excess of the total amount levied and certified by that city or town in its fiscal year 2011. In its

2-11

fiscal year 2013 and in each fiscal year thereafter, a city or town may levy a tax in an amount not

2-12

more than four percent (4%) in excess of the total amount levied and certified by that city or town

2-13

for its previous fiscal year.

2-14

      (b)(c) The office of municipal affairs in the department of administration shall monitor

2-15

city and town compliance with this levy cap, issue periodic reports to the general assembly on

2-16

compliance, and make recommendations on the continuation or modification of the levy cap on or

2-17

before December 31, 1987, December 31, 1990, and December 31, every third year thereafter.

2-18

The chief elected official in each city and town shall provide to the office of municipal affairs

2-19

within thirty (30) days of final action, in the form required, the adopted tax levy and rate and

2-20

other pertinent information.

2-21

      (c)(d) The amount levied by a city or town may exceed the five and one-half percent

2-22

(5.5%) percentage increase as specified in subsection (a) or (b) of this section if the city or town

2-23

qualifies under one or more of the following provisions:

2-24

      (1) The city or town forecasts or experiences a loss in total non-property tax revenues

2-25

and the loss is certified by the department of administration.

2-26

      (2) The city or town experiences or anticipates an emergency situation, which causes or

2-27

will cause the levy to exceed five and one-half percent (5.5%) the percentage increase as

2-28

specified in subsection (a) or (b) of this section. In the event of an emergency or an anticipated

2-29

emergency, the city or town shall notify the auditor general who shall certify the existence or

2-30

anticipated existence of the emergency. Without limiting the generality of the foregoing, an

2-31

emergency shall be deemed to exist when the city or town experiences or anticipates health

2-32

insurance costs, retirement contributions or utility expenditures which exceed the prior fiscal

2-33

year's health insurance costs, retirement contributions or utility expenditures by a percentage

2-34

greater than three (3) times the percentage increase as specified in subsection (a) or (b) of this

3-1

section.

3-2

      (3) A city or town forecasts or experiences debt services expenditures which are more

3-3

than one hundred five and one-half percent (105.5%) of exceed the prior year's debt service

3-4

expenditures by an amount greater than the percentage increase as specified in subsection (a) or

3-5

(b) of this section and which are the result of bonded debt issued in a manner consistent with

3-6

general law or a special act. In the event of the debt service increase, the city or town shall notify

3-7

the department of administration which shall certify the debt service increase above one hundred

3-8

five and one-half percent (105.5%) of the percentage increase as specified in subsection (a) or (b)

3-9

of this section the prior year's debt service. No action approving or disapproving exceeding a levy

3-10

cap under the provisions of this section affects the requirement to pay obligations as described in

3-11

subsection (d) of this section.

3-12

     (4) The city or town experiences substantial growth in its tax base as the result of major

3-13

new construction which necessitates either significant infrastructure or school housing

3-14

expenditures by the city or town or a significant increase in the need for essential municipal

3-15

services and such increase in expenditures or demand for services is certified by the department

3-16

of administration.

3-17

      (4) (e) Any levy pursuant to subsection (c) (d) of this section in excess of the five and

3-18

one-half percent (5.5%) percentage increase specified in subsection (a) of this section shall be

3-19

approved by a majority vote the affirmative vote of at least four-fifths (4/5) of the full

3-20

membership of the governing body of the city or town or in the case of a city or town having a

3-21

financial town meeting, the majority of the electors present and voting at the town financial

3-22

meeting shall also approve the excess levy.

3-23

      (d) (f) Nothing contained in this section constrains the payment of present or future

3-24

obligations as prescribed by section 45-12-1, and all taxable property in each city or town is

3-25

subject to taxation without limitation as to rate or amount to pay general obligation bonds or notes

3-26

of the city or town except as otherwise specifically provided by law or charter.

3-27

     SECTION 2. Sections 44-35-3 and 44-35-6 of the General Laws in Chapter 44-35

3-28

entitled "Property Tax and Fiscal Disclosure - Municipal Budgets" are hereby amended to read as

3-29

follows:

3-30

     44-35-3. Definitions. -- (a) "Adjusted current property tax rate" means the estimated

3-31

property tax rate that would be necessary in the next fiscal year to raise one hundred and five and

3-32

one-half percent (105.5%) of the property tax revenues in the next fiscal year that were levied in

3-33

the town's or city's current fiscal year. the maximum levy authorized by section 44-5-2 of the

3-34

general laws.

4-1

      (b) "Chief elected official" means the highest locally elected official in each town or city.

4-2

      (c) "Proposed property tax rate" means the estimated property tax rate that is proposed

4-3

by a town or city to support its operating budget for the town's or city's next fiscal year.

4-4

     44-35-6. Publication of property tax rates. -- At least ten (10) calendar days prior to the

4-5

hearing for the purpose of adopting the town or city budget, the chief elected official in each town

4-6

or city shall cause to be published a notice indicating the town's or city's intent to consider

4-7

adopting a property tax levy. This notice shall be published in a newspaper of general circulation

4-8

in the town or city. However, this notice may not be placed in that portion of the newspaper

4-9

where legal notices and classified advertisements appear. This notice shall constitute notice of

4-10

public hearing which may coincide with the hearing on the proposed budget and shall be by and

4-11

in the following form:

4-12

      (CITY, TOWN) of (NAME)

4-13

      NOTICE OF PROPOSED PROPERTY TAX

4-14

      RATE CHANGE

4-15

      The (City, Town) proposes to increase (decrease) its property tax levy to ________ in

4-16

the ________ budget year; the property tax levy this year is __________, THIS IS A

4-17

PROPOSED INCREASE (DECREASE) OF ______%.

4-18

      It has been estimated that the proposed increase (decrease) in property tax revenues will

4-19

result in a property tax rate of $________ (proposed property tax rate) per $1,000 assessed

4-20

valuation, as compared to the current property tax rate of $________ per $1,000 assessed

4-21

valuation.

4-22

      A property tax rate of $________ (adjusted current property tax rate) would be needed in

4-23

the coming budget year to raise five and one-half percent (5.5%) more, as an adjustment for

4-24

increased costs, than the property tax revenues being raised in the current budget year. the

4-25

maximum levy authorized by section 44-5-2 of the general laws.

4-26

      The (City, Town) budget __________ will be considered at (date, time, place).

4-27

      The above property tax estimates have been computed in a manner approved by the

4-28

Rhode Island Department of Administration.

4-29

     Chief Elected Official

4-30

     SECTION 3. Section 44-45-2 of the General Laws in Chapter 44-45 entitled "Omnibus

4-31

Property Tax Relief and Replacement Act" is hereby amended to read as follows:

4-32

     44-45-2. Legislative findings. -- The general assembly finds and declares that the

4-33

following conditions confront Rhode Island at this time:

4-34

      (1) In 1982, the governor's advisory commission to study the financial operations of state

5-1

and local governments found that "when the state and local tax system is viewed in its totality, it

5-2

becomes clear that property tax relief and replacement is needed".

5-3

      (2) Rhode Island has a serious over reliance on the property tax, as evidenced by the

5-4

facts that:

5-5

      (i) Rhode Islanders paid forty-nine dollars and ninety-two cents ($49.92) per capita in

5-6

property tax collections in fiscal year 1983, compared to a U.S. average of thirty-four dollars and

5-7

seventy-one cents ($34.71), ranking this state sixth highest in the nation;

5-8

      (ii) Per one thousand dollars ($1,000) of personal income, property tax collections in

5-9

Rhode Island equaled five hundred and thirty-seven dollars ($537) that year, compared to a three

5-10

hundred and eighty-one dollar ($381) U.S. average, placing the state ninth highest nationally; and

5-11

      (iii) Rhode Island's cities and towns derived fifty-eight and nine-tenths percent (58.9%)

5-12

of their own-source local general revenue from the property tax in fiscal year 1983, compared to

5-13

an average of only twenty-eight and eight-tenths percent (28.8%) for all the states.

5-14

      (3) In 1983-84, Rhode Island ranked only forty-third nationally in terms of state support

5-15

for public elementary and secondary school, providing only thirty-six percent (36%) of these

5-16

revenues.

5-17

      (4) The state educational operations aid formula should be gradually increased until the

5-18

state and municipalities equally share the cost of providing local education. The general assembly

5-19

remains committed to that objective and intends to pursue that objective aggressively upon

5-20

receipt and consideration of the final report of the joint legislative committee to establish a

5-21

permanent education foundation aid formula in accordance with section 16-7.2-2 of the general

5-22

laws.

5-23

      (5) The state should also share a greater portion of its economically sensitive growth

5-24

taxes with its cities and towns in order to further shift the burden of funding essential municipal

5-25

services from the property tax.

5-26

      (6) The growth in property tax levies should be capped in accordance with section 44-5-

5-27

2 of the general laws to five and one-half percent (5.5%) annual growth as a quid pro quo for

5-28

receiving increased state aid to reduce reliance on the property tax.

5-29

     (7) Cities and towns should be assisted in their efforts to control school and municipal

5-30

expenditures by appropriately amending state arbitration and school budgeting laws.

5-31

     SECTION 4. Chapter 45-2 of the General Laws entitled "General Powers" is hereby

5-32

amended by adding thereto the following section:

5-33

     45-2-3.2. Availability of funds upon failure of city or town to approve annual

5-34

appropriation. – Unless otherwise provided by a city or town charter, in an emergency caused

6-1

by a failure of a city or town to approve an annual appropriation measure, the same amounts

6-2

appropriated in the previous fiscal year shall be available for each department and division

6-3

thereof, subject to monthly or quarterly allotments, in accordance with seasonal requirements, as

6-4

determined by the city or town's chief financial officer: provided, that expenditures for payment

6-5

of bonded indebtedness of the city or town and interest thereon shall be in such amounts as may

6-6

be required, regardless of whether or not an annual appropriation ordinance is enacted by the city

6-7

or town council.

6-8

     SECTION 5. Section 16-2-21 of the General Laws in Chapter 16-2 entitled "School

6-9

Committees and Superintendents" is hereby amended to read as follows:

6-10

     16-2-21. Pre-budget consultation -- Annual reports -- Appropriation requests --

6-11

Budgets. -- (a) At least sixty (60) days but not more than ninety (90) days prior to the formal

6-12

submission of the school budget to the appropriate city or town officials by the school committee,

6-13

there shall be a joint pre-budget meeting between the school committee and the city or town

6-14

council(s). At or before this meeting:

6-15

      (1) The highest elected official of the city or town shall submit to the school committee

6-16

an estimate, prepared in a manner approved by the department of administration, of projected

6-17

revenues for the next fiscal year. In the case of the property tax, the projections shall include only

6-18

changes in the property tax base, not property tax rates;

6-19

      (2) The school committee shall submit to the city or town council a statement for the

6-20

next ensuing fiscal year of anticipated total expenditures, projected enrollments with resultant

6-21

staff and facility requirements, and any necessary or mandated changes in school programs or

6-22

operations; and

6-23

      (3) The school committee shall prepare and submit, annually, to the department of

6-24

elementary and secondary education, on or before the first day of August, a report in the manner

6-25

and form prescribed by the state board of regents for elementary and secondary education; the

6-26

committee shall also prepare not less than thirty (30) days before the date of the annual financial

6-27

town meeting, or the date of the meeting of the city council at which annual appropriations are

6-28

made, on forms prescribed and furnished by the department of elementary and secondary

6-29

education, the estimates and recommendations of the amounts necessary to be appropriated for

6-30

the support of public schools for the fiscal year ensuing; provided, that a copy of these estimates

6-31

and recommendations shall be sent to the department of elementary and secondary education, and

6-32

until the report is made, and if the estimates and recommendations are not presented to the

6-33

department, it may refuse to draw its orders for the money in the state treasury apportioned to the

6-34

city or town; provided, that the necessary blank for the report has been furnished by the

7-1

department on or before the first day of June, next preceding, and the necessary forms for the

7-2

estimates and recommendations shall have been furnished by the department not less than sixty

7-3

(60) days before the date of the annual appropriations meeting of the city council; the committee

7-4

shall also prepare and submit annually to the department of elementary and secondary education

7-5

and at the annual financial town meeting a report to the city or town, setting forth its doings, the

7-6

state and condition of the schools, and plans for their improvement, which report, unless printed,

7-7

shall be read in open meeting; and if printed, at least three (3) copies shall be transmitted to the

7-8

department on or before the day of the annual financial town meeting in each year.

7-9

      (b) If the amount appropriated by the town meeting, the city or town council, or budget

7-10

referendum is either more or less than the amount recommended and requested by the school

7-11

committee, the school committee shall, within thirty (30) days after the appropriation is made,

7-12

amend its estimates and recommendations so that expenses are no greater than the total of all

7-13

revenue appropriated by the state or town or provided for public schools under the care, control,

7-14

and management of the school committee.

7-15

      (c) Only a school budget in which total expenses are less than or equal to appropriations

7-16

and revenues shall be considered an adopted school budget.

7-17

     (d) Notwithstanding any provision of the general or public laws to the contrary:

7-18

     (i) the budget adopted and presented by any school committee for the fiscal year 2008

7-19

shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

7-20

excess of one hundred five and one-quarter percent (105.25%) of the total of municipal funds

7-21

appropriated by the city or town council for school purposes for fiscal year 2007;

7-22

     (ii) the budget adopted and presented by any school committee for the fiscal year 2009

7-23

shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

7-24

excess of one hundred five percent (105%) of the total of municipal funds appropriated by the

7-25

city or town council for school purposes for fiscal year 2008;

7-26

     (iii) the budget adopted and presented by any school committee for the fiscal year 2010

7-27

shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

7-28

excess of one hundred four and three-quarters percent (104.75%) of the total of municipal funds

7-29

appropriated by the city or town council for school purposes for fiscal year 2009;

7-30

     (iv) the budget adopted and presented by any school committee for the fiscal year 2011

7-31

shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

7-32

excess of one hundred four and one-half percent (104.5%) of the total of municipal funds

7-33

appropriated by the city or town council for school purposes for fiscal year 2010;

7-34

     (v) the budget adopted and presented by any school committee for the fiscal year 2012

8-1

shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in

8-2

excess of one hundred four and one-quarter percent (104.25%) of the total of municipal funds

8-3

appropriated by the city or town council for school purposes for fiscal year 2011; and

8-4

     (vi) the budget adopted and presented by any school committee for the fiscal year 2013

8-5

and for each fiscal year thereafter shall not propose the appropriation of municipal funds

8-6

(exclusive of state and federal aid) in excess of one hundred four percent (104%) of the total of

8-7

municipal funds appropriated by the city or town council for school purposes for fiscal year

8-8

2012.

8-9

     (e) Notwithstanding any provision of the general public laws to the contrary, any

8-10

judgment rendered pursuant to subsection 16-2-21.4(b) shall consider the percentage caps on

8-11

school district budgets set forth in subsection (d) of this section.

8-12

     SECTION 6. Sections 45-13-7, 45-13-8 and 45-13-9 of the General Laws in Chapter 45-

8-13

13 entitled "State Aid" are hereby amended to read as follows:

8-14

     45-13-7. State mandated costs defined. -- "State mandate" means any state initiated

8-15

statutory or executive action or rule, regulation or policy adopted by a state department or agency

8-16

or a quasi-public department or agency that requires a local government to establish, expand, or

8-17

modify its activities in a way as to necessitate additional expenditures from local government

8-18

revenue sources where the expenditures are not otherwise reimbursed in whole or in part. When

8-19

state statutory or executive actions or rules, regulations or policies are intended to achieve

8-20

compliance with federal statutes or regulations or court orders, state mandates shall be determined

8-21

as follows:

8-22

      (1) Where the federal statute or regulations or court order is discretionary, the state

8-23

statutory or executive action shall be considered a state mandate for the purposes of sections 45-

8-24

13-7 -- 45-13-10.

8-25

      (2) Where the state statutory or executive action or rule, regulation or policy exceeds

8-26

what is required by the federal statute or regulation or court order, only the provisions of the state

8-27

action which exceed the federal requirements shall be considered a state mandate for the purposes

8-28

of sections 45-13-7 -- 45-13-10.

8-29

      (3) Where the state statutory or executive action or rule, regulation or policy does not

8-30

exceed what is required by the federal statute or regulation or court order, the state action shall

8-31

not be considered a state mandate for the purposes of sections 45-13-7 -- 45-13-10.

8-32

      (4) Where the cost of a single state mandate does not exceed the sum of five hundred

8-33

dollars ($500) the state mandate shall not be reimbursable.

8-34

     45-13-8. Reports. -- (a) The department of administration in consultation and

9-1

cooperation with towns and cities shall maintain:

9-2

      (1) An identification of state mandates created by statute since January 1, 1970;

9-3

      (2) Specific identification of all state mandates established since July 1, 1979 which are

9-4

subject to reimbursement in accordance with section 45-13-9, and the cost of each of these

9-5

mandates to each city and town.

9-6

      (b) The department of administration shall annually by January 1 issue a report

9-7

identifying the state's mandates established during the preceding July 1 -- June 30 period and

9-8

stating the cost by city and town of all state mandates established after January 1, 1979, for the

9-9

next preceding July 1 -- June 30 period. The department of administration shall annually issue to

9-10

cities and towns a comprehensive listing of all state mandates established after January 1, 1979.

9-11

      (c) (1) Statutes and regulations containing state mandates shall include items eligible for

9-12

reimbursement; however, failure to include these items shall not exempt any state mandates not

9-13

otherwise exempted from the provisions of sections 45-13-7 -- 45-13-10.

9-14

      (2) Cities and towns shall submit to the department of administration in any form that

9-15

may be established by the department, a report of the cost of each state mandate established after

9-16

January 1, 1979, to the city or town. The reports shall be submitted by April 1 each year and shall

9-17

state costs incurred by the city or town during the preceding July 1 -- June 30 period.

9-18

      (3) The reports of cities and towns requesting reimbursement for state mandates are

9-19

subject to audit procedures established under section 45-10-5.1.

9-20

      (d) The department of administration shall issue by January 1, 1988 and by January 1 of

9-21

each fourth (4th) year thereafter, a report to the governor and the General Assembly

9-22

recommending the modification or repeal of existing state mandates which are deemed to be

9-23

inappropriate or obsolete and citing the reason for the recommendation on the fourth (4th) year

9-24

anniversary of those state mandates. This report shall be prepared by the local government

9-25

assistance division Rhode Island office of municipal affairs within the department of

9-26

administration in consultation and cooperation with the affected state agencies and the Rhode

9-27

Island league of cities and towns and the Rhode Island association of school committees.

9-28

      (e) All reports issued by the department of administration in accordance with this

9-29

subsection shall be adopted by rule as provided for in chapter 35 of title 42.

9-30

     45-13-9. Reimbursement to cities and towns for the costs of state mandates. --

9-31

Reimbursement to cities and towns and school districts for the costs of state mandates. -- (a)

9-32

(1) The department of administration shall submit to the budget office by September October 1 of

9-33

each year, a report by each city and town, of the cost of state mandates established after January

9-34

1, 1979, to be reimbursed for the next preceding July 1 -- June 30 period.

10-1

      (2) The budget office shall annually include the statewide total of the statement of costs

10-2

of state mandates to be reimbursed in the state budget for the next fiscal year; provided, that any

10-3

costs resulting from the rules and regulations of state departments or agencies shall be allocated

10-4

to the budgets of those departments or agencies.

10-5

      (b) The state treasurer shall in July of each year distribute to cities and towns the

10-6

reimbursements for state mandated costs in accordance with the report submitted by the

10-7

department of administration to the state budget office.

10-8

     SECTION 7. Chapter 45-13 of the General Laws entitled "State Aid" is hereby amended

10-9

by adding thereto the following section:

10-10

     45-13-11.1. Excuse, avoidance or suspension of reimbursement requirements. -- The

10-11

provisions of sections 45-13-6 through 45-3-10 of this chapter may be excused, avoided or

10-12

suspended only by law enacted by the affirmative vote of three-fifths (3/5) of the full membership

10-13

of each house of the general assembly.

10-14

     SECTION 8. It is the finding of the General Assembly that the most burdensome tax that

10-15

the citizens of this state must pay is the property tax. In order to provide relief from the adverse

10-16

impact of that tax, the General Assembly requires certain information. The Office of Municipal

10-17

Affairs in the Department of Administration is therefore authorized to and directed to undertake

10-18

an inventory of all current property tax treaties; payments in lieu of taxes, agreements reached

10-19

through ordinance or public law; all exemptions, including delayed payments, freezes or any

10-20

other programs in any form, and any and all other similar mechanisms for reducing property taxes

10-21

and/or providing property tax relief within and among the several cities and towns, including the

10-22

legal basis for the granting of these treaties agreements, and exemptions by the municipalities.

10-23

The several cities and towns are hereby requested to provide whatever assistance may be

10-24

necessary or useful to the Office of Municipal Affairs in executing its responsibilities hereunder.

10-25

     The Office of Municipal Affairs is further authorized and directed to review and analyze

10-26

this material and to make a report and recommendations to the General Assembly by November

10-27

15, 2006, with copies to the President of the Senate, Speaker of the House, the Chairperson of the

10-28

Senate Finance Committee, the Chairperson of the House Finance Committee, the Senate Fiscal

10-29

Advisor and the House Fiscal Advisor.

10-30

     It is the intention of the legislature that procedures and methodologies utilized for tax

10-31

treaties, payment in lieu of taxes, tax agreements and other property tax stabilization vehicles

10-32

employed by the various cities and towns be treated in the same manner with regard to

10-33

determination of value relative to tax rolls and the use of this information for determining state

10-34

aid, including education state aid to said communities. Payments in lieu of taxes covered under

11-1

section 45-13-5.1 of the General Laws need not be reviewed.

11-2

     SECTION 9. This act shall take effect upon passage, except that sections 6 and 7 shall

11-3

take effect on January 1, 2007.

=======

LC03048/SUB A/3

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- PROPERTY TAXES

***

12-1

     This act would reduce the percentage increase a city or town may increase property taxes

12-2

over the previous year from five and one half percent (5.5%) to five and one quarter percent

12-3

(5.25%) in 2008 and to four percent (4%) in 2013 and would include pre-budget consultation

12-4

regarding school budgets.

12-5

     This act would take effect upon passage, except that section 6 would take effect on

12-6

January 1, 2007.

=======

LC03048/SUB A/

=======

2006 -- S 3050 H.

SUBSTITUTE A

A N A C T

RELATING TO TAXATION -- PROPERTY TAXES

=======

LC03048/SUB A/3

=======

======================================================================

Presented by