Chapter 16 - TAXATION

Part of the Code of Ordinances of East Providence, RI.

Local law · 2,200 sections

The text

Footnotes:

--- (1) --- Cross reference— Any appropriation ordinance or any ordinance levying or imposing taxes saved from repeal, § 1-12(6); any ordinance providing for local improvements and assessing taxes therefor saved from repeal, § 1-12(7); any ordinance creating special districts or assessing taxes therefor saved from repeal, § 1-12(14); any ordinance creating specific tax exemptions saved from repeal, § 1-12(15); administration, ch. 2; licenses and business regulations, ch. 8.

State Law reference— Public finance, G.L. 1956, Title 35; authority to borrow money must be by general law, § 5, Art. XXXVIII, R.I. Const.; fiscal year, G.L. 1956, § 35-2-2; taxation, G.L. 1956, Title 44; power to tax property, G.L. 1956, § 45-2-2; levy and assessment of local taxes, G.L. 1956, § 44-5-1 et seq.; exemptions, G.L. 1956, § 44-3-3; exemptions in town, G.L. 1956, § 46-3-23; exemption of railroad property in town, G.L. 1956, § 44-3-11; sinking funds, G.L. 1956, § 45-12-8; self-insuring fund, G.L. 1956, § 45-41-1 et seq.

ARTICLE I. - IN GENERAL#

Secs. 16-1—16-15. - Reserved.#

ARTICLE II. - PROPERTY EXEMPTION FOR VETERANS AND PERSONS 65 YEARS OF AGE AND OLDER#

Footnotes:

--- (2) --- State Law reference— Ad valorem tax exemptions, G.L. 1956, § 44-3-3; veterans exempt from property taxation, G.L. 1956, § 44-3-4; personal and household property exemption, G.L. 1956, § 44-3-3(17); exemption for persons over the age of 65 years, G.L. 1956, § 44-3-13.

Sec. 16-16. - Authority of city assessor.#

(a)

The city assessor is hereby authorized to grant an exemption in the form of a reduction from assessed value in the amount of $27,900.00 from real property taxes to any person of 65 years of age or older who owns, resides in and occupies residential property located in the city including mobile homes, provided that only one such exemption shall be granted to cotenants, joints tenants and tenants by the entirety even though all such cotenants, joint tenants or tenants by the entirety are 65 years of age or over. This exemption shall be granted upon proof of age, ownership of residential property including mobile homes, occupancy of such residential property and that the taxpayer is legally domiciled in the city. Such proof shall conform to the provisions of sections 16-17 through 16-19. Nothing contained in this article shall abrogate or affect the authority conferred upon the assessor by the provisions of G.L. 1956, § 44-3-3(16).

(b)

(1)

The city assessor is hereby authorized to grant an exemption from property or excise taxes to any veteran who otherwise fulfills the requirements of G.L. 1956, § 44-3-4(a)(1), (b), (c) and (e), as amended, as set forth in the table below. In accordance with R.I.G.L. § 44-3-66, the city shall also grant an exemption in the form of a reduction from assessed valuation to any qualified East Providence resident applicant who is less than 100 percent disabled as determined by the U.S. Veteran's Administration consistent with the following table:

Exemption Category Assessment Amount

Veteran/Widow $14,340.00

Disabled 100% Service Connected $28,600.00

1% to 30% Veteran's Administration Disability Rating $18,635.00

31% to 60% Veteran's Administration Disability Rating $22,935.00

61% to 99% Veteran's Administration Disability Rating $27,235.00

Veteran's Modified Housing $28,600.00

Prisoner of War $17,590.00

(2)

In addition, the city assessor is authorized to grant an exemption from property or excise taxes to Gold Star Parents in the form of a reduction in assessed value in the amount of $12,500.00.

The tax assessor is authorized to adopt all necessary written rules and regulations to implement the above-referenced exemptions including the documents necessary to establish the level of disability rating not inconsistent with state or federal law and proof of residency.

(c)

The city assessor is hereby authorized to grant an $27,900.00 reduction from assessed valuation of property or excise taxes to any blind person who otherwise fulfills the requirements of G.L. 1956, § 44-3-12.

(d)

The following transfer by the property owner of real property shall not affect the exemption of those individuals if:

(1)

The owner transfers an ownership interest in the property while retaining a life estate in the property; or

(2)

The owner transfers an ownership interest while leasing the property back but only where the lessee was the owner of the property prior to the transfer to the lessor; or

(3)

The owner transfers the property to a revocable or irrevocable living trust, if and so long as the otherwise eligible individual resides in such property and the otherwise eligible individual or the trustee is legally obligated to pay property tax on such property by contract, by agreement, by the terms of the trust instrument, or otherwise by law. The provisions of this section shall be applicable to any such transfer, regardless of when the transfer is made.

(e)

The city council authorizes and directs the tax assessor to adjust all property tax exemptions to ensure that all qualified residents entitled to a property tax exemption prior to any city-wide revaluation, receive the same monetary credit as they did prior to the revaluation and the subsequent adjustments to the real estate tax rate. The tax assessor shall adjust all exemptions as directed in all years immediately following the effective date of any city property valuation pursuant to R.I.G.L. § 44-5-11.6 as amended.

(Rev. Ords. 1987, § 16-16; Ch. 597, § I, 3-18-14; Ch. 858, § I, 10-18-22; Ch. 963, § I, 4-7-26)

Sec. 16-17. - Certain properties not subject to exemption.#

As it is the purpose of this article to confine the exemption provided to residential property occupied by the owners thereof, the following properties shall not be entitled to such exemption: (1)

Business property or combination of business and residential property;

(2)

Residences used by professional persons who are permitted by law to operate and conduct their respective professions from such residences;

(3)

Dwellings consisting of four or more dwelling units, apartment houses, motels, or hotels, and rooming houses.

(Rev. Ords. 1987, § 16-17)

Sec. 16-18. - Application.#

(a)

No person shall be entitled to any exemption authorized in this article without first filing an application with the tax assessor on forms furnished by the assessor. Each application shall be sworn to by the applicant under penalty of perjury. Proof of age, ownership, occupancy and legal domicile shall be furnished in the following manner:

(1)

Proof of age. Age may be proven by furnishing to the assessor either a birth certificate, certificate of citizenship, baptismal certificate, affidavit of a third party or by such other means as may be approved by the assessor.

(2)

Ownership. Ownership may be established by furnishing the tax assessor with the date of purchase and land record citation of the purchase by the applicant of the residential property involved.

(3)

Occupancy. Occupancy of the residential property may be proven by incorporating such fact in the sworn application for exemption.

(4)

Legal domicile. Legal domicile may be established by the production of a voter's registration certificate, a license to operate a motor vehicle or a registration certificate or by such other means as the assessor may reasonably require.

(5)

Other forms of proof An applicant may provide proof of right to exemption if the above specified methods are not available to him by furnishing military records, passports, certificate of citizenship or by such other evidence or proof as may be required by the assessor.

(b)

If the applicants for exemption are cotenants, joint tenants or tenants by the entirety, the proof enumerated above by any one of the applicants shall be sufficient to be entitled to the exemption.

(Rev. Ords. 1987, § 16-18)

Sec. 16-19. - Termination.#

All exemptions shall terminate upon the conveyance of the subject property, the death of the person exempted, the moving of such person from the city or when the subject property is so altered as to character and use that the subject property becomes subject to the provisions of section 16-17.

(Rev. Ords. 1987, § 16-19)

Sec. 16-20. - Effective date.#

Applications for exemptions under this article filed on or before January 31 of each year and upon approval by the assessor prior to the legal certification of the tax roll shall be accepted by the tax collector, and credit for such exemption shall be applied to the assessment of December 31 of the year preceding the date of such filing and approval. Tax exemptions authorized by this article shall be effective from and after 12:00 noon December 31. Any applications for exemptions filed after January 31 of any year and subsequently approved by the assessor shall not be operative until the year succeeding such filing, and the exemption credit shall become effective against the assessment made December 31 following the date of filing.

(Rev. Ords. 1987, § 16-20)

Sec. 16-21. - Self-Help, Inc., tax exemption.#

The city assessor is hereby authorized to grant an exemption from property or excise taxes to Self-Help, Inc., for property owned by Self-Help, Inc., as of December 31, 1992.

(Rev. Ords. 1987, § 16-21)

Secs. 16-22—16-35. - Reserved.#

ARTICLE III. - SALE OF PROPERTY ACQUIRED AT TAX SALE#

Sec. 16-36. - Authorization; notice.#

After five years from the purchase by the city of any parcels of real estate for the nonpayment of taxes, if the city council is of the opinion that such parcels are of insufficient value to meet the taxes, interest and charges and all subsequent taxes and assessments thereon, the city council may authorize the director of finance to sell all such parcels, severally or together, for the sum which the city council in its opinion shall deem sufficient. The director of finance shall, at least once during each calendar year, cause a notice to be published setting forth a description of such real estate by plat and lot. The notice shall be published in some public newspaper published in the city, then in some public newspaper published in the county, once each week for three successive weeks.

(Rev. Ords. 1987, § 16-36)

Sec. 16-37. - Public auctions; sealed bids generally.#

(a)

Authorized sales by real estate as provided by section 16-36 may be by public auction or by sealed bid. Public auctions of such real estate shall be held according to law.

(b)

The following procedure shall govern sales not at public auction:

(1)

The director of finance is authorized to receive bids from the prospective purchasers of such real estate. All such bids shall be enclosed in a letter addressed to the director of finance setting forth a description of the real estate by plat and lot, and the name and address of the owner of record prior to the purchase of the real estate by the city. The enclosed bid shall be submitted in a sealed envelope and shall be in letter form addressed to the city council.

(2)

The bid shall set forth the officer to purchase, the amount bid, a description of the real estate by plat and lot, and the name and address of the owner of record prior to the purchase of the real estate by the city.

(3)

The bid shall be accompanied by a certified check for ten percent of the amount bid.

(Rev. Ords. 1987, § 16-37)

Sec. 16-38. - Notice of receipt of bids; deadline for acceptance of bids; referral of bids to city council.#

Upon receipt of a sealed bid for a sale of real estate not at public auction, the director of finance shall give notice by registered mail of the receipt of the bid to the owner of record prior to the purchase of the real estate by the city. After the expiration of 90 days from the giving of such notice to the owner of record by the director of finance, the sealed bids shall be opened by the director of finance and the bids shall be referred to the next regular meeting of the city council. No bid shall be accepted by the director of finance after 90 days from the date upon which the notice is given by the director of finance to the owner of record.

(Rev. Ords. 1987, § 16-38)

Sec. 16-39. - Action by city council; preparation and form of deed.#

The city council shall accept or reject the bid referred to it by the director of finance, and if the bid is accepted, the director of finance shall execute and deliver to the purchaser a deed without covenant, except that the sale has been conducted according to law. The deed shall be in a form approved by the city solicitor.

(Rev. Ords. 1987, § 16-39)

Secs. 16-40—16-49. - Reserved.#

ARTICLE IV. - PROPERTY TAX ON RATABLE REAL ESTATE AND TANGIBLE PERSONAL PROPERTY AND EXCISE TAX ON REGISTERED MOTOR VEHICLES AND TRAILERS#

Sec. 16-50. - Assessment.#

That the Council of the City of East Providence hereby orders the assessment and collection of a tax on ratable real estate and tangible personal property in a sum not more than $122,918,382.00. Said tax is for ordinary expenses, for the payment of interest and indebtedness, in whole or in part, of said city, and for other purposes authorized by law.

The tax assessor shall assess and apportion said tax on the inhabitants and ratable property of said city as of the 31st day of December, 2025 at twelve o'clock Eastern Standard Time, according to law, and shall on completion of said assessment, date and sign same and shall make out and certify to the Tax Collector of the City of East Providence, who is charged with the duties for the collection of taxes, on or before the 15th day of June, 2026 a complete list of the names of the persons taxed and of the total value of all the real estate and tangible personal property assessed against each person, and also the total amount assessed against each person on said real estate and tangible personal property, opposite the name of the person or persons assessed. Upon receipt of the certified tax list by the tax collector, she shall proceed and collect said tax on the persons and estates liable thereof; said tax shall be due and payable on and between the 1st day of June 2026 and the 1st day of July, 2026 and provided further that if said tangible personal property and/or real estate taxes are paid in full on or before the 1st day of July, 2026, a discount of one and one half percent of the total taxes on said tangible personal property and real estate shall be granted, and all taxes remaining unpaid on the 1st day of July, 2026 shall carry until collected a penalty at the rate of twelve percent per annum from the 1st day of June, 2026 upon said unpaid tax, however, said taxes may be paid in four installments; the first installment of twenty-five percent on or before the 1st day of July, 2026, the second installment twenty-five percent on or before the 1st day of September, 2026, the third installment of twenty-five percent on or before the 1st day of December, 2026 and the fourth installment of twenty-five percent on or before the 1st day of March, 2027.

Each installment of taxes if paid on or before the last day of each installment period successively in order shall be free from any charge of interest and shall include an additional seven business day grace period after the last due date of each installment.

If any succeeding installment of taxes is not paid by the last date of the respective unpaid balance period or periods as they occur and after the seven business day grace period, then the whole tax or remaining unpaid balance of the taxes as the case may be shall immediately become due and payable and carry until collected a penalty at the rate of twelve percent, per annum.

If any payment of taxes is made by check or electronic fund transfer (EFT) and said check is returned unpaid or said EFT is rejected and the city is assessed a fee from its bank for said bounced check/rejected EFT, a fee in the amount of $25.00 for a bounced check and a fee in the amount of $15.00 for a rejected EFT shall be due and owing by said taxpayer and said payment amount shall be added to the bill due and owing by the taxpayer.

(Ch. 38, § I, 11-10-98; Ch. 433, § I, 11-6-07; Ch. 493, § I, 11-3-09; Ch. 505, § I, 5-18-10; Ch. 515, § I, 10-19-10; Ch. 614, § I, 10-21-14; Ch. 648, § I, 4-19-16; Ch. 658, § I, 10-18-16; Ch. 663, § I, 1-3-17; Ch. 820, § I, 10-19-21; Ch. 907, § I, 10-2-23; Ch. 926, § 1, 10-15-24; Ch. 954, § I, 11-4-25)

Sec. 16-51. - Collection.#

The budget commission of the City of East Providence hereby orders the assessment and collection of a tax on ratable real estate, tangible personal property and an excise tax on registered motor vehicles and trailers in a sum not more than $99,336,000.00 nor less than $98,336,000.00. Said tax is for ordinary expenses, for the payment of interest and indebtedness, in whole or in part, of said city, and for other purposes authorized by law.

Further, the budget commission of the City of East Providence hereby establishes amounts per $1,000.00 of assessed value for FY 2012 for ratable real estate, tangible personal property and an excise tax on registered motor vehicles and trailers as follows: FY 2011 FY 2012

Initial* FY 2012

Revised Change to

Initial

Residential $20.09 $20.79 $20.74 ($0.05)

Commercial/

Industrial/

Mixed-Use 22.25 23.02 22.94 (0.08)

Motor Vehicle 37.10 37.10 37.10 (0.00)

Tangible 49.59 51.32 51.19 (0.13)

*FY 2012 Initial estimates included in the FY 2012 Budget passed by the city council on October 25, 2011.

(Ch. 38, § I, 11-10-98; Ch. 433, § I, 11-6-07; Ch. 493, § I, 11-3-09; Ch. 515, § I, 10-19-10; Ch. 554, § I, 4-17-12; Ch. 556-A, § 2, 5-17-12)

Sec. 16-52. - Collection of unpaid taxes by levy upon sale of real estate.#

Any of said taxes not paid on or before the first day of March, 2012 shall forthwith be collected by levy upon the sale of real estate upon which it is assessed and by that or other due process of law in case of assessment upon personal property.

(Ch. 38, § II, 11-10-98; Ch. 433, § II, 11-6-07; Ch. 493, § II, 11-3-09; Ch. 515, § II, 10-19-10)

Sec. 16-53. - Maximum levy.#

(a)

Beginning in fiscal year 2007, the city may not levy a tax in an amount more than three and one-half percent in excess of the amount levied and certified by the city for the prior year. The amount levied by the city is deemed to be consistent with the three and one-half percent levy growth cap if the tax rate is not more than 103.5 percent of the prior year's tax rate. In all years when a revaluation is not being implemented, a tax rate is deemed to be 103.5 percent or less of the prior year's tax rate if the tax on a parcel of real property, the value of which is unchanged for purpose of taxation, is no more than 103.5 percent of the prior year's tax on the same parcel of real property. In any year when a revaluation is being implemented, the tax rate is deemed to be 103.5 percent of the prior year's tax rate upon certification by the department of finance for the city.

(b)

The amount levied by the city may exceed the three and one-half percent increase only upon approval by a supermajority of four of the city council.

(c)

The amount levied by the city may exceed the percentage increase as specified in subsection (a) of this section if one of the following occurs:

(1)

The city forecasts or experiences a loss in total non-property tax revenues and the loss is certified by the director of finance.

(2)

The city experiences or anticipates an emergency situation, which causes or will cause the levy to exceed this percentage increase specified in subsection (a). Without limiting the generality of the foregoing, an emergency shall be deemed to exist when the city experiences or anticipates health insurance costs, retirement contributions or utility expenditures which exceed the prior fiscal year's health insurance costs, retirement contributions or utility expenditures by a percentage greater than three times the percentage increase as specified in subsection (a) of this section.

(3)

The city forecasts or experiences debt services expenditures which exceed the prior year's debt service expenditures by an amount greater than the percentage increase as specified in subsection (a) of this section and which are the result of bonded debt issued in a manner consistent with general law or a special act.

(4)

The city experiences substantial growth in its tax base as the result of major new construction which necessitates either significant infrastructure or school housing expenditures by the city or a significant increase in the need for essential municipal services and such increase in expenditures or demand for services is certified by the director of finance.

(Ch. 403, § I, 10-3-06)

Sec. 16-54. - Waiver of the maximum levy.#

(a)

The purpose of this section is to ensure that the city council follows the highest standards of transparency regarding taxation when adopting its annual budget.

(b)

The State of Rhode Island has established a maximum levy for taxation by municipalities pursuant to G.L. 1956, § 44-5 et seq. Pursuant to G.L. 1956, § 44-5-2 (d), (e), a municipality may request a waiver from the maximum tax levy and impose a tax greater than the maximum levy but the state law requires an affirmative vote of at least four-fifths of the full membership of the governing body of the city.

(c)

The city council may not request a waiver to the maximum tax levy pursuant to G.L. 1956, § 44-5-2(d), (e) unless the request for the waiver is approved by a resolution passed by a four-fifths vote of the City of East Providence City Council. Further, the City of East Providence City Council may not exceed the maximum levy provided for in G.L. 1956, § 44-5-2 et seq. unless it is approved by resolution passed by a four-fifths vote of the city council. Said resolutions must specify the reasons the city council is seeking the waiver of the maximum tax levy and contain the specific amount by which the city council exceeds the maximum tax levy.

(d)

Said resolutions provided for in subsection (c) of this ordinance must be passed at a public hearing of the city council.

(Ch. 537, § I, 10-18-11)

Sec. 16-55. - Waiver of interest on overdue quarterly tax payments.#

(a)

The director of finance or his or her designee, acting in the capacity of tax collector for the city, shall authorize a waiver of the interest owed on one quarter's overdue property tax payment and allow the remaining balance of taxes owed to be paid on a quarterly basis if all of the following conditions are satisfied by the resident:

(1)

The property subject to the overdue payment is the residence of the taxpayer and has been for at least five consecutive years.

(2)

The request for a waiver of interest is in writing, signed and dated by the taxpayer.

(3)

The taxpayer has made timely payments of taxes to the city for the five years immediately preceding the tax payment which is overdue. The burden of proof of timely payments shall be upon the taxpayer.

(4)

The bill for which the payment is overdue was issued less than two years prior to the date of the request for a waiver of interest.

(b)

In no event shall the waiver of interest on a tax bill exceed $500.00. Decisions of the finance director, or his or her designee acting in the capacity as tax collector, shall be in writing and recorded with the city. The notice of decision shall state the method to appeal an adverse decision by the finance director or designee. If the taxpayer receives an adverse decision, then within ten business days of the decision, the taxpayer may file a claim for reimbursement of the interest with the city council.

(c)

Any request for a waiver of taxes which meets the criteria established by this ordinance shall be granted by the city pursuant to G.L. § 44-5-8.1(c).

(Ch. 791, § I, 11-10-20)

Sec. 16-56. - One-time tax amnesty period-real property tax payments.#

(a)

In accordance with R.I.G.L. §44-5-8.6, entitled "East Providence—Tax Amnesty Period—Real Property Tax Payments" or as such may be renumbered but having the same title, the City of East Providence by and through enactment of this Ordinance, does hereby authorize a sixty-day period during fiscal year 2023 whereby a waiver of interest and penalties in an amount not to exceed $10,000.00 on overdue real property tax payments may be made if the request for a waiver of interest and penalties is:

(1)

In writing, on a designated form created by the tax assessor; and

(2)

Such form shall be signed, dated, and submitted to the tax collector by the taxpayer within the sixty-day waiver period beginning August 15, 2023 and ending October 14, 2023, and

(3)

The taxpayer must pay all delinquent and/or overdue taxes in full, and the taxpayer must pay all other remaining taxes, penalties and interest that remain due and owing above and beyond the grant of a $10,000.00 waiver, and all such payments must be made in full during the amnesty period.

(b)

In accordance with R.I.G.L. §44-5-8.6(b), the tax assessor shall provide the city council with a report at the conclusion of the amnesty period which shall include a copy of the applications and shall further specify whether or not the tax assessor made the decision to grant amnesty in accordance with R.I.G.L. §44-5-8.6(b) and (c).

(c)

Waivers of interest and penalties shall not be granted for any taxes contained in the 2023 tax bill.

(Ch. 883, § I, 7-18-23)

Sec. 16-57. - One-time tax amnesty period-tangible and motor vehicle taxes.#

(a)

In accordance with R.I.G.L. §44-5-8.6, entitled "East Providence—Tax Amnesty Periods—Tangible and motor vehicle taxes" or as such may be renumbered but having the same title, the City of East Providence by and through enactment of this ordinance, does hereby authorize a sixty-day (60) period during fiscal year 2023 whereby a waiver of interest and penalties on overdue tangible and/or motor vehicle tax payments may be made if the request for a waiver of interest and penalties is:

(1)

In writing, on a designated form created by the tax assessor; and

(2)

Such form shall be signed, dated, and submitted to the tax collector by the taxpayer within the sixty-day (60) waiver period beginning August 15, 2023 and ending October 14, 2023, and

(3)

The tax assessor may grant amnesty in whole or in part, and

(4)

The taxpayer must pay all delinquent and/or overdue taxes in full, and the taxpayer must pay all other remaining taxes, penalties and interest that remain due and owing, and all such payments must be made in full during the amnesty period.

(b)

Waivers of interest and penalties shall not be granted for any taxes contained in the 2023 tax bill.

(Ch. 884, § I, 7-18-23)

Secs. 16-58—16-60. - Reserved.#

ARTICLE V. - TAX STABILIZATION FOR QUALIFIED BUSINESSES#

Footnotes:

--- (3) --- Editor's note— Ch. 595, adopted Dec. 17, 2013, amended art. V in its entirety to read as herein set out. Former art. V pertained to the same subject matter and derived from Ch. 51, adopted Feb. 3, 1999; and Ch. 70, adopted June 1, 1999.

Sec. 16-61. - Definitions.#

Applicant means the lessee or property owner who initiates the property tax stabilization application process.

Property, for the purposes of this article, means the land, buildings and/or facilities where the expansion, construction or renovation occurs, or business tangible property.

(Ch. 595, § I, 12-17-13)

Sec. 16-62. - Purpose.#

The purpose of this article is to promote business expansion in the city through the development of a property tax stabilization program.

(Ch. 595, § I, 12-17-13)

Sec. 16-63. - Eligible property.#

(a)

All legally permitted commercial and industrial facilities within the city which meet the qualifications established in this article are eligible to participate. No property under tax incremental financing (TIF) agreement shall be eligible for stabilization.

(b)

All legally permitted apartments, condominium complexes, and hotels which meet the qualifications established in this article are eligible to participate.

(c)

All new business tangible property which meets the qualifications established in this article is eligible to participate.

(d)

Any applicant business and/or property owner for tax stabilization pursuant to this article must be current on all tax, user fees and any other payments owed to the city as of the time of application and at the time the property tax stabilization is granted. Any property owner who applies for property tax credits on behalf of a business operating at the property owner's facilities shall be current on all tax, user fees and other payments owed to the city.

(e)

The granting of the exemption or stabilization will inure to the benefit of the city by reason of:

(1)

The willingness of the eligible property owner to locate in the city; or

(2)

The willingness of an eligible property owner to expand facilities with an increase in employment or to retain its facility in the city and not reduce substantially its work force in the city.

(f)

The granting of the exemption stabilization of taxes will inure to the benefit of the city by reason of the willingness of an eligible property owner to replace, reconstruct, expand, retain or remodel existing buildings, facilities, machinery, or equipment with modem buildings, facilities, fixtures, machinery, or equipment resulting in an increase or maintenance in plant, equipment, or commercial building investment by the property owner in the city.

(g)

Prior to authorizing any property tax stabilization for the property, the property owner shall be required to obtain a municipal lien certificate from the tax collector's office, indicating that the applicant business and/or property owner is current on all payments owed to the city. Any payments that are in arrears on the property shall render the applicant ineligible for the incentives offered through this article.

(h)

The property which is the subject of the application must conform to all city and state zoning laws, building and fire codes prior to the authorization of any property tax stabilization for the applicant. The zoning officer, the building official and fire marshal for the city shall be required to issue a written certification indicating that the property does so conform.

(i)

The minimum threshold for participation in this program by existing eligible properties is $150,000.00 in taxable improvements as determined by the city tax assessor. The minimum threshold for new eligible properties and tangible business equipment is $500,000.00. The assessed value of the proposed improvements or tangible business equipment shall be established by the city tax assessor prior to authorizing any tax stabilization pursuant to this article. Applicants for stabilization of tangible business equipment shall document the creation or relocation of no fewer than ten full-time equivalent jobs (FTE's). Such documentation shall be submitted to the department of planning for review and verification at the time of application. Failure to create or maintain such jobs within or for a 12-month period from the date of application for stabilization will result in the tax exemption granted pursuant to this stabilization program ceasing immediately. Notice of the failure to comply with this job creation requirement shall be sent to the property owner by registered mail.

(j)

In the event the applicant is delinquent on any quarterly tax or other payment due to the city on property receiving the exemption hereunder for a period of more than 45 days, or in the event that the subject property no longer complies with city and state zoning laws, building and fire codes, the tax exemption granted pursuant to this stabilization program shall cease immediately. Notice of the tax delinquency and/or failure to comply with city and state zoning laws, building and fire codes shall be sent to the property owner by registered mail after the tax delinquency and/or failure to comply with city and state zoning laws, building and fire codes occurs.

(Ch. 595, § I, 12-17-13)

Sec. 16-64. - Stabilization schedule.#

(a)

(1)

For expansion or renovation of any existing facility, construction of a new facility, the addition of tangible business property, or leasehold improvements, excepting instances where the proposed taxable improvements are in excess of $5,000,000.00, the percentage of new added taxable assessment shall be stabilized is in accordance with the following tax exemption schedule:

Year Percent Exempt

From Tax

1 100

2 80

3 60

4 40

5 20

6 0

In year six and thereafter, the new value will be taxed at the normal rate for the city.

(2)

For expansion or renovation of any existing facility, construction of a new facility, addition of tangible business property, or construction of leasehold improvements whose taxable value is in excess of $5,000,000.00, the requirements as prescribed under section 16-66 of this article may apply. The applicant may elect, however, to proceed with the five-year administrative stabilization program.

(b)

The exemption provided for herein will not relate to the value of land, but to the value of related improvements and tangible business property only. Tax assessment and collection practices and procedures will be the same as for any other property, including revaluation and improvements unrelated to stabilization, except for the application of the tax stabilization provided for herein.

(c)

Leasehold improvements will be classified as tangible business property in order to qualify for the exemption provided for herein, provided they are physically attached to the building.

(d)

All exemptions granted pursuant to this tax stabilization program may be transferred in the event the property is sold during the term of the stabilization program.

(Ch. 595, § I, 12-17-13)

Sec. 16-65. - Application procedure.#

(a)

The application procedure for projects with greater than $150,000.00 in taxable improvements but less than $5,000,000.00 in taxable improvements shall proceed as follows:

(1)

Eligible property owners planning to utilize this program shall, prior to obtaining a building permit, apply for the program through the city planning department. A complete application will contain the following material exhibits:

Application form;

Five sets of improvements plans;

An itemized description of the improvements associated with the project;

An application fee in the amount of $200.00;

A municipal lien certificate issued by the city collector's office for the project property.

(2)

The city tax assessor, building official, zoning officer, fire marshal and city clerk shall be immediately forwarded a copy of the application for comment and review. The city tax assessor shall review and establish the taxable value of the proposed improvements as described by the applicant within the application for stabilization. The planning department may also forward copies of the application to other departments for additional review and comment.

(3)

The planning department must determine that the granting of the exemption or stabilization will inure to benefit of the city by reason of:

The willingness of the eligible property owners to locate in the city; or

The willingness of an eligible property to expand facilities with an increase in employment or to retain its facility in the city and not reduce substantially its work force in the city.

(4)

The planning department must determine that the granting of the exemption or stabilization of taxes will inure to the benefit of the city by reason of the willingness of an eligible property to replace, reconstruct, expand, retain or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase or maintenance in plant or commercial building investment by the property in the city.

(5)

The planning department shall review the application and any other comments received from other departments and divisions and deem the application complete within 30 days of receiving the application.

(6)

The director of planning and the city assessor shall approve, deny or defer a decision pending additional information within 15 days of the issuance of a certificate of completeness.

(7)

Upon approval of the application, the city tax assessor or his designee, shall conduct an inspection of the subject property in order to determine the assessed valuation of the property prior to improvements and/or renovations.

(8)

Subsequent to the city tax assessor's inspection and approval of the subject property, the applicant may obtain a building permit for improved property from the city building official. A building permit must be obtained within six months of the application's approval. Failure to obtain a building permit for improved property within the allotted time shall deem the approval null and void.

(9)

Upon completion of the improvements, the tax assessor or person designated by him shall inspect the subject property, and confirm the taxable assessed value added to the property. The city tax assessor will thereupon notify the applicant and the city planning department of the added value and the schedule of phased in taxable value on the new construction, improvement or increase in tangible business property.

(b)

The planning department and city assessor shall submit an annual report to the mayor and the city council identifying all properties participating in the property tax stabilization program. Additionally, this section shall be reviewed annually by the department of planning and the city tax assessor in order to evaluate the overall effectiveness of the program and to recommend to the city council any additional language or amendments which may improve the effectiveness of the program.

(c)

All participating employers are required to comply with all federal and state regulations concerning job safety and affirmative action requirements.

(d)

The city reserves the right to terminate this program at any time through the action of the city council.

(10)

An appeal of the decision of the planning director and city tax assessor must be filed with the board of assessment review within 20 days of the decision. The decision of the board of assessment review is final.

(Ch. 595, § I, 12-17-13; Ch. 877, § I, 6-6-23)

Sec. 16-66. - Extended stabilization.#

In the event the expansion or renovation of any existing facility, construction of a new facility or leasehold improvements of an existing facility exceeds $5,000,000.00 in taxable value, as determined by the city assessor, the amount of the tax stabilization and the length of term of the stabilization may be extended to ten years determined by the city council, subject to the requirements set forth in section 16-67 of this article.

(Ch. 595, § I, 12-17-13)

Sec. 16-67. - Extended stabilization schedule.#

Year Percent Exempt

From Tax

1 100

2 90

3 80

4 70

5 60

6 50

7 40

8 30

9 20

10 10

In year 11 and thereafter, the new value will be taxed at the normal rate for the city.

(Ch. 595, § I, 12-17-13)

Sec. 16-68. - Application procedure for extended stabilization.#

(a)

The application procedure shall proceed as follows:

(1)

Businesses or property owners planning to utilize this program shall, prior to obtaining a building permit, apply for the program through the city planning department. Tangible business property and leasehold improvements are not eligible for extended stabilization. A complete application will contain the following material exhibits:

Application form;

Ten sets of improvements plans;

An itemized description of the improvements associated with the project;

An application fee in the amount of $200.00;

A municipal lien certificate issued by the city collector's office for the project property.

(2)

The city tax assessor, building official, zoning officer, fire marshal and city clerk shall be immediately forwarded a copy of the application for comment and review. The city tax assessor shall review and establish the taxable value of the proposed improvements as described by the applicant within the application for stabilization. If the proposed expansion or improvements exceed the $5,000,000.00 threshold as established under this section, the application shall be deemed eligible for city council stabilization review.

The planning department may also forward copies of the application to other departments for additional review and comment.

(3)

(4)

Once the application is deemed complete, the city tax assessor or his designee, shall conduct an inspection of the subject property in order to determine the assessed valuation of the property prior to improvements and/or renovations. The results of this inspection shall be provided to the planning department for inclusion in the planning department's recommendation to the economic development commission.

(5)

Subsequent to the city tax assessor's inspection of the subject property, the department of planning shall review and prepare a written recommendation to the economic development commission which outlines the fiscal impacts the proposed stabilization will have on the tax base of the city and provide a recommendation for stabilization on the property. The economic development commission shall consider the department of planning's recommendation and prepare a written recommendation to the city council within 30 days of the economic development commission meeting. Upon receiving the economic development commission's recommendation, the city clerk shall place the stabilization request on the docket of the next available city council meeting.

(6)

In reviewing the application the city council must determine that the granting of the exemption or stabilization will inure to benefit of the city by reason of:

The willingness of the manufacturing or commercial concern to locate in the city; or

The willingness of a manufacturing firm to expand facilities with an increase in employment or the willingness of a commercial or manufacturing concern to retain its facility in the city and not reduce substantially its work force in the city.

(7)

In reviewing the application the city council must determine that the granting of the exemption or stabilization of taxes will inure to the benefit of the city by reason of the willingness of a manufacturing or commercial firm to replace, reconstruct, expand, retain or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase or maintenance in plant or commercial building investment by the eligible property in the city.

(8)

The city council shall vote to approve, deny or defer the application for stabilization.

(9)

Upon approval by the city council, the applicant may obtain a building permit from the city building official. All other necessary permits required for development of the site, must be obtained, however, prior to the issuance of a building permit. Regulatory review of a proposed development may proceed prior to the approval of the stabilization by the city council. A building permit must be obtained within one year of the application's approval by the city council. Failure to obtain a building permit within the allotted time shall deem the approval null and void. The applicant may request an extension of the approval not be [to] exceed six months which shall be subject to approval by the city council.

(10)

(b)

The planning department and city assessor shall submit an annual report to the mayor and the city council identifying all eligible properties participating in the property tax stabilization. Additionally, this section shall be reviewed annually by the department of planning and the city tax assessor in order to evaluate the overall effectiveness of the program and to recommend to the city council any additional language or amendments which may improve the effectiveness of the program.

(c)

All participating employers are required to comply with all federal and state regulations concerning job safety and affirmative action requirements.

(d)

The city reserves the right to terminate this program at any time through the action of the city council.

(Ch. 595, § I, 12-17-13; Ch. 877, § I, 6-6-23)

Secs. 16-69—16-70. - Reserved.#

ARTICLE VI. - EXEMPTION FOR RESIDENTIAL IMPROVEMENTS AND ALTERATIONS.#

Footnotes:

--- (4) --- Editor's note— In order to avoid duplication of Article V, the editor has redesignated the provisions of Ch. 34, adopted Oct. 20, 1998 as Article VI, §§ 16-71—16-79.

Sec. 16-71. - Authorization to grant; term of exemption.#

The tax assessor is hereby authorized to grant an exemption from real property taxation equal to any increase in assessed valuation resulting from alterations and improvements made to existing dwellings used for residential purposes; not to exceed 75 percent of the assessed value of the real property prior to the alterations and improvements. The exemption shall be granted for two years beginning with the tax roll assessed as of the assessment date which immediately follows the completion of the alterations and improvements or which next occurs 18 months after the date of issuance of the building permit for the alterations and improvements, whichever first occurs.

(Ch. 34, § I, 10-20-98)

Sec. 16-72. - Conditions and standards required of dwellings to be exempt.#

In order to be eligible for exemption, the dwelling must be an existing residential dwelling and be at least five (5) years of age at the time of the issuance of the building permit for the alterations and improvements, all real estate taxes applicable to such dwelling must be paid up to date, and the dwelling must meet all minimum housing and building code requirements or the alterations and improvements must be such as will improve the dwelling to such code requirements. The tax assessor shall require a certificate from the building inspector that minimum housing and building code requirements are satisfied.

(Ch. 34, § I, 10-20-98)

Sec. 16-73. - Restricted to owner-occupied residential dwelling.#

The exemption shall be allowed only for owner-occupied residential dwellings; and any property occupied or used for stores, apartments, rental tenements, professional or business use, or other commercial or income-producing purposes shall not be eligible for exemption; provided, that in any case where alterations and improvements benefit partly residential and partly business portions of the property, the increase in assessed valuation resulting from such alterations and improvements shall be apportioned by the tax assessor, and the exemption shall be allowed only for the portion of the structure which in the opinion of the tax assessor is used and occupied as the residence of the owner.

(Ch. 34, § I, 10-20-98)

Sec. 16-74. - Alterations and improvements which qualify for exemption.#

Alterations and improvements which qualify for exemption hereunder shall include, but are not limited to, the following: (1)

Installations of additional plumbing facilities, electrical fixtures, heating system, hot water system or replacement of existing equipment;

(2)

Inside and outside painting or redecorating;

(3)

Repairing, repointing or replacing existing masonry;

(4)

Reshingling of or installation of siding on exterior walls;

(5)

Replacing or repairing roofs, gutters, downspouts;

(6)

Weather stripping, insulating or replacing of existing windows and sashes;

(7)

Adding a bedroom, bathroom, recreation room, fireplace or garages;

(8)

Converting basement into amusement or rumpus room;

(9)

Enclosing open porches or breezeways;

(10)

New basement or incinerator;

(11)

Improving lawns, landscaping, or adding sprinkler system;

(12)

Adding new fences or stone walls;

(13)

Repairing or replacing or adding porches, steps, sideways or driveways;

(14)

Adding any built-ins, kitchen cabinets or closets; or

(15)

Any other improvement, alteration or addition which in the opinion of the city assessor does not materially affect the character and use of the property and is of such a nature that the property will retain its basic structural design and be improved to a condition comparable to similar structures and housing standards.

(Ch. 34, § I, 10-20-98)

Sec. 16-75. - Alterations and improvements which do not qualify for exemptions.#

The following shall not be deemed to be alterations and improvements which qualify for exemption hereunder: (1)

Any change from one family to multi-family use;

(2)

Addition of recreation facilities such as a swimming pool, tennis court or basketball court;

(3)

Any change in connection with, or enabling the operation of a business or profession from a residence;

(4)

Any alteration or improvement which in the opinion of the tax assessor is of such a nature that the property does not retain its basic structural design or that the character and use of the property has changed;

(5)

Any alteration or improvement made without a building permit issued by the building inspector.

(Ch. 34, § I, 10-20-98)

Sec. 16-76. - Application.#

No persons shall be entitled to any exemption hereunder without first filing an application with the tax assessor on forms furnished by the tax assessor. The application shall require such information as to cost, construction, ownership, occupancy, use and any other information required by the tax assessor to determine compliance with the terms of this article.

The tax assessor may adopt rules and regulations not inconsistent with this article concerning the exemption granted hereunder, the manner and form of application therefor, and the determination by the assessor of the cost, valuation and amount of exemption for alterations and improvements.

Applications for exemption must be filed by December 31 of the year in which the alterations and improvements are completed and may be approved by the tax assessor prior to certification of the subsequent tax roll.

(Ch. 34, § I, 10-20-98)

Sec. 16-77. - Termination upon conveyance of property, etc.; exception.#

Any exemption hereunder shall terminate upon the conveyance of the subject property, except for a conveyance or transfer to a member of the immediate family of the owner without consideration. In addition, any exemption shall terminate when this property subject to exemption is no longer owner-occupied for residential purposes or if the original conditions and qualifications for the granting of the exemption no longer exist.

(Ch. 34, § I, 10-20-98)

Sec. 16-78. - Appeals.#

Appeals may be made to the board of assessment review in the manner and to the extent provided by law.

(Ch. 34, § I, 10-20-98)

Sec. 16-79. - Property subject to general revaluation.#

Notwithstanding the grant of an exemption under this article, the property shall still be subject to any general revaluation done on a city-wide basis.

(Ch. 34, § I, 10-20-98)

Secs. 16-80—16-84. - Reserved.#

ARTICLE VII. - REAL ESTATE NONUTILIZATION TAX#

Sec. 16-85. - Definitions.#

The following words, terms, and phrases, when used in this chapter, have the meanings ascribed to them in this article, except in those instances where the context clearly indicates a different meaning:

Abutter means a neighbor whose property touches the property in question.

Actively marketed means good faith efforts by the owner of the property to obtain one or more occupants of the property. These good faith efforts may include, without limitation, one or more of the following: (1)

Making substantial financial expenditures in comparison with the value of the property;

(2)

Listing the property for sale or lease, or both, with one or more real estate brokers, for a price and on terms, of for a rental that is realistic considering the fair market or fair market rental value of the property; or

(3)

Advertising, using one or more signs on the property and at least one other medium, the availability of the property for sale or rental for a price and on terms or at a rental that is realistic considering the fair market value or fair rental value of the property. Sporadic attempts to sell or lease the property during the privilege year may be viewed as not constituting a good faith marketing effort.

Continuously unoccupied means any property which is listed during the entire privilege year as vacant in the records of a city's or town's department of minimum housing.

Development plan means a plan to rehabilitate a vacant and abandoned property within a set time frame for a use in conformance with the city or town's comprehensive plan.

Nonprofit housing organization means any organization exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)) whose exempt purposes include the provision of affordable housing to low and moderate income households.

Privilege year means the 12-month period corresponding to the calendar year.

Reviewing entity means the department of planning.

Vacant and abandoned property means any property which is: (1)

A building that has remained continuously unoccupied during the privilege year or a lot, with no existing structure that is littered with trash and obviously abandoned;

(2)

In the case of property containing one or more buildings used in whole or in part for one or more dwelling units immediately prior to the time the property became vacant, been under continuous designation as vacant by a city's or town's department of minimum housing during the privilege year; or

In the case of property containing one or more buildings none of which were used in whole or in part for one or more dwelling units immediately prior to the time the property became vacant, been under continuous citation by an agency of a city or town for violation of minimum housing code provisions relating to the health or safety of citizens during the privilege year.

(Ch. 208, § I, 5-21-02)

Sec. 16-86. - Imposition of tax.#

The city shall impose a tax upon the privilege of utilizing property as vacant and abandoned property within the city during any privilege year commencing with the privilege year beginning January 1, 2000 and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

(Ch. 208, § I, 5-21-02)

Sec. 16-87. - Determination of vacant or abandoned property.#

The building official for the city shall be responsible for determining which properties are vacant and abandoned. If the building official determines that a building has been continuously unoccupied or vacant and abandoned during the privileged year, the building official shall notify the tax assessor and the tax assessor shall impose the nonutilization tax authorized by this chapter.

(Ch. 208, § I, 5-21-02)

Sec. 16-88. - Removal of nonutilization tax.#

The nonutilization tax shall be removed from the property upon certification by the building official to the tax assessor that the property has been rehabilitated. Any development plan proposed by a nonprofit housing organization or an abutter pursuant to this chapter shall be submitted for review to the department of planning and must be approved by the department of planning prior to development.

(Ch. 208, § I, 5-21-02)

Sec. 16-89. - Abatement of nonutilization tax.#

The tax assessor shall abate the nonutilization tax if it is imposed in error or if a nonprofit housing organization or an abutter acquires the property for rehabilitation and submits a development plan that complies with the provisions of section 16-90(2).

(Ch. 208, § I, 5-21-02)

Sec. 16-90. - Exemptions.#

(a)

The non-utilization tax authorized by this chapter shall not be imposed on property owned by an abutter or a nonprofit housing organization if:

(1)

The abutter or nonprofit housing organization submits a proposed development plan which has been approved by the state housing resources commission or state housing and mortgage finance corporation to the planning department;

(2)

The proposed development plan contains a reasonable timetable for the development or reuse of the property; and

(3)

The planning department determines that the proposed development plan is in accordance with the city's approved comprehensive plan and approves it.

(b)

The planning department shall deliver a copy of the approved development plan to the tax assessor who shall certify the property as exempt from the non-utilization tax.

(c)

Failure of the nonprofit housing organization or abutter, without good cause, to carry out the development or reuse of the property in accordance with the timetable set forth in the approved development plan shall result in the property being subject to the non-utilization tax as of the first date of assessment following the expiration of the timetable in the approved development plan.

(d)

The decision of the planning department denying approval of a development plan may be appealed as provided in section 16-93.

(Ch. 208, § I, 5-21-02)

Sec. 16-91. - Rate of tax.#

The tax authorized by this chapter shall be measured by the assessed value of the real estate at the rate of ten dollars for each $100.00 of the assessed value of the real estate as most recently returned by the tax assessor.

(Ch. 208, § I, 5-21-02)

Sec. 16-92. - Date on which taxes due.#

The tax imposed under authority of this chapter shall be due and payable in the same manner as other municipal taxes are due in the city.

(Ch. 208, § I, 5-21-02)

Sec. 16-93. - Appeals.#

(a)

In any appeal from the imposition of the tax set forth in this chapter, the tax review board of the city shall find in favor of an appellant who shows that the property assessed:

(1)

Was actively marketed during the privilege year;

(2)

Was occupied for substantial portions of the privilege year, notwithstanding its designation by the building official; or

(3)

Was exempt pursuant to section 16-90 from the imposition of the tax set forth in this article.

(b)

Nothing contained in this article shall be deemed to enlarge or diminish any other right of appeal that an appellant may possess pursuant to the general or public laws, or the ordinances of the city.

(Ch. 208, § I, 5-21-02)

ARTICLE VIII. - PROPERTY TAX CLASSIFICATION#

Sec. 16-94. - Ratable property classification.#

(a)

All ratable property in the city shall be classified by the tax assessor as follows:

(1)

Class 1. Residential real estate consisting of no more than three dwelling units, land classified as open space, and dwellings on leased land including mobile homes. A homestead exemption provision is also authorized within this class.

(2)

Class 2. Commercial and industrial real estate, residential properties containing partial commercial or business uses and residential real estate of more than three dwelling units.

(3)

Class 3. All ratable tangible personal property; excluding wholesale and retail inventory, which shall be taxed in accordance with G.L. 1956, § 44-3-29.1.

(b)

The tax rate applicable to Class 2 shall not exceed by two hundred percent the rate applicable to Class 1.

(c)

Beginning with the assessment date of December 31, 2022, and except in any year in which a comprehensive or statistical revaluation is completed, any tax rate change from one year to the next shall be applied such that the same percentage change is applicable to all classes.

(d)

Notwithstanding subdivisions (a) and (b), the tax rates applicable to wholesale and retail inventory within class 3 as defined in subsection (b) are governed by G.L. 1956, § 44-3-29.1.

(e)

Notwithstanding subdivisions (a) and (b), the tax rates applicable to residential real estate within subsection (b) are governed by G.L. 1956, § 44-5-70.

(f)

The provisions of G.L. 1956, tit. 44, ch. 35 relating to property tax and fiscal disclosure applies to the reporting of and compliance with these classification restrictions.

(Ch. 307, § I, 5-18-04; Ch. 882, § I, 7-18-23)

ARTICLE IX. - FINANCIAL REPORTING REQUIREMENTS#

Sec. 16-95. - Financial reporting requirements for the finance directors of the school department and the city.#

(a)

The purpose of this ordinance is to improve the city's ability to efficiently and effectively monitor its budget revenues and expenditures.

(b)

The finance director for the City of East Providence School Department shall provide a monthly financial report to the finance director of the City of East Providence. Said monthly financial report shall, at a minimum, show budget to actual cumulative expenditures for each month.

(1)

Such report shall list each budget line item by account number and title and shall identify the appropriations, encumbrances, expenditures and account balance for the current fiscal year.

(c)

The budget to actual expenditure report provided to the city finance director by the school finance director shall also be provided to the city council and the school committee.

(d)

This budget to actual report shall be provided by the school department finance director to the city finance director no later than 14 days after the close of the previous month.

(e)

The finance director for the school department shall also provide the finance director for the City of East Providence a quarterly report which at a minimum shall contain the revenue and expense estimates for all categories in the school department budget as provided for in section (b) (1) of this ordinance. In each instance where there is a deviation from the budget for any expenditure the report shall contain an explanation for the deviation and a corrective plan of action to reconcile the expenditure with the budget as soon as practicable.

(Ch. 536, § I, 10-18-11)

Sec. 16-96. - Audit management letter.#

(a)

The city is required by local, state and federal regulations to commission an annual audit of its financial statements. As part of the annual audit process, the city's auditors issue internal control and compliance reports and a management letter detailing issues of internal controls and material weakness.

(b)

The city and the school district shall prepare a written response to each deficiency and compliance finding noted in the management letter for the annual audit. Such response must be prepared and submitted to the city council, school committee, and state oversight body, if applicable, within 45 days of receipt of the management letter.

(c)

The mayor and the superintendent of schools shall provide a status report to the city council and the school committee, respectively, on a quarterly basis.

(Ch. 559-A, § 1, 7-26-12; Ch. 877, § I, 6-6-23)

ARTICLE X. - TAXATION OF ALTERNATIVE RENEWABLE ENERGY SYSTEMS#

Sec. 16-97. - Definitions.#

Minor alternative renewable energy system. Any off the grid system supplying power or heat to a specific property or properties under common ownership, including solar, photovoltaic, wind, geothermal, hydro-electric, or other energy source. All residential systems owned by the property owner for up to three-family dwellings.

Major alternative renewable energy system. Any renewable energy system designed to sell electricity to a utility supplier.

Combined purpose alternative renewable energy system. Any renewable energy system which is used to supply power or heat to a specific property or properties under common ownership where excess production is sold to a utility supplier or credited back to the system owner.

Leased alternative energy system. Any system leased to any entity in East Providence including residential homeowners.

(Ch. 639, § I, 12-15-15)

Sec. 16-98. - Taxation.#

(a)

Pursuant to G.L. § 44-3-21, minor alternative renewable energy systems are exempt from taxation in the City of East Providence.

(b)

Major alternative renewable energy systems are fully taxable in the City of East Providence unless by written agreement of the city council.

(c)

Combined purpose alternative renewable energy systems are taxable in the City of East Providence to the extent they sell to a utility supplier or are credited back to the system owner.

(d)

Leased alternative renewable energy systems are fully taxable to the lessor.

(Ch. 639, § I, 12-15-15)

Sec. 16-99. - Requirements.#

(a)

All city regulations must be followed including but not limited to building permits, zoning requirements, and planning requirements.

(b)

Agreements with utility suppliers, annual income and expense statements and credited amounts must be filed with the tax assessor's office.

(c)

An annual application for renewable energy system tax exemption must be made to the city assessor no later than March 15 of each year on forms to be provided by the assessor.

(Ch. 639, § I, 12-15-15)

ARTICLE XI. - EXEMPTION FOR LIVE/WORK SPACE DEED RESTRICTED PROPERTIES#

Sec. 16-100. - Authority and purpose.#

Pursuant to G.L. 1956, § 44-3-13.4, the city council of East Providence enacts this ordinance to promote affordable housing by providing a partial exemption from property taxation for qualifying mixed-use properties that include owner-occupied mixed-use live/work units that are also deed-restricted to low to moderate income occupancy.

The exemption credit ensures that qualifying low to moderate income deed restricted live/work space are not taxed entirely at the commercial property tax rate. Instead, the residential portion is taxed at the residential rate with applicable exemptions, reflecting its actual use as a live/work residence.

(Ch. 959, § I, 2-17-26)

Sec. 16-101. - Definitions.#

Assessed value means the most recent deed restricted sales price of the property pursuant to G.L. 1956, § 44-5-12(7).

Deed restriction means a legally recorded restriction, recorded with the city clerk, that limits occupancy or resale of the unit to low- or moderate-income households for a period of 30 years or more.

Owner-occupied means a unit that is owned by an individual person or persons which also serves as the person(s) primary residence of which the occupant is also the legal owner of the premises and the owner/operator of the business within the same unit.

Live/work space means a building or spaces within a building used for commercial activities and areas for residential/living purposes where at least two-thirds (67 percent) of the space is dedicated for residential use and the remainder for commercial/retail uses.

Low- or moderate-income housing means any housing whether built or operated by any public agency or by any non-profit organization or by any limited equity housing cooperative or any private developer, that is subsidized by a federal, state, or municipal government subsidy under any program to assist the construction or rehabilitation of affordable housing and that will remain affordable through a land lease and/or deed restriction for 99 years or such other period that is either agreed to by the applicant and town or prescribed by the federal, state, or municipal government subsidy program but that is not less than 30 years from initial occupancy, as defined in G.L. 1956, § 45-53-3, and a household whose income does not exceed 100 percent of the Area Median Income (AMI), as defined by HUD.

Mixed-use property/live work space means a property that includes both residential and commercial components, where both components must be occupied and operated by the legal owner. Neither the residential nor commercial component can be rented/leased or occupied by anyone other than the legal owner.

Max rate means the residential and commercial property tax rate as established by the city as a result of the adoption of the city's annual budget.

(Ch. 959, § I, 2-17-26)

Sec. 16-102. - Eligibility criteria.#

(a)

All live/work space that is owner-occupied and subject to a deed restriction is eligible for an exemption property tax credit as calculated under section 16-103 provided that:

(1)

An application is filed with the city tax assessor as of March 15 of each calendar year and,

(2)

Proof that the live/work space was owner-occupied as of December 31 of the previous calendar year and had an operating owner-occupied business within the same unit.

(Ch. 959, § I, 2-17-26)

Sec. 16-103. - Calculation steps.#

(a)

The city assessor shall calculate all eligible live/workspaces exemptions as follows:

Step 1: Calculate full commercial tax (also the gross tax).

Full commercial tax = (Total assessed value ÷ 1000) X Commercial rate.

Step 2: Calculate mixed classification tax.

Residential tax = (Residential assessed portion minus the applicable homestead exemption, if any ÷ 1000) x Residential rate.

Commercial tax = (Commercial assessed portion ÷ 1000) x Commercial rate.

Mixed classification tax = Residential tax + Commercial tax.

Step 3: Calculate exemption credit.

Exemption credit = Full commercial tax (step 1) - Mixed classification tax (step 2).

Step 4: Net taxable value: The exemption credit is then subtracted from the gross tax, and subtracting any additional owner eligible exemptions, to arrive at the net taxable property tax due.

(b)

The exemption credit will be recalculated annually based on the current tax rate.

(Ch. 959, § I, 2-17-26)

Sec. 16-104. - Exemption termination/transfer.#

(a)

The exemption will continue as long as the property remains owner-occupied and deed restricted for low or moderate income housing in full compliance with the eligibility criteria as set forth in section 16-102. Failure to maintain compliance shall result in immediate termination of the exemption and subject live/work property to its full property tax liability by using the commercial tax rate to the entire unit.

(b)

Upon transfer of ownership of the live/work space, the exemption shall automatically terminate. The new owner must submit a new application and meet all eligibility criteria outlined in this ordinance to qualify for the exemption. Failure to do so will result in the assessment of the live/work space unit at the full commercial tax rate.

Sec. 16-105. - Program administration.#

The office of the tax assessor shall administer the exemption program and may audit properties at any time to ensure compliance. The assessor shall create a live/work space exemption application and may adopt written guidelines to establish the necessary documentation needed to be eligible for the exemption.

(Ch. 959, § I, 2-17-26)

Sec. 16-106. - Effective date.#

This ordinance shall be retroactive as of January 1, 2026 and shall apply to all qualifying properties thereafter.

(Ch. 959, § I, 2-17-26)