The text
Footnotes:
--- (1) --- Charter reference— Minimum tax levy, § 5-9; division of assessment and city assessor, § 6-8; board of assessment review, § 8-18.
Cross reference— Tax classification plan, § 2-16; board of assessment review, § 6-51 et seq.
State Law reference— Taxation, G.L. 1956, title 44.
ARTICLE I. - IN GENERAL#
Sec. 74-1. - Payment of taxes prior to issuance of business license.#
(a)
Prior to the issuance, renewal or transfer of any license or permit required for the conduct of any business activity on any property in the city, the board of public safety shall require, and the applicant shall submit to the board of public safety, proof satisfactory to the board that all state and local taxes arising out of the licensed establishment have been paid.
(b)
Upon affirmative recommendation of the city tax collector and after hearing before the board of public safety, this requirement may be waived by the board of public safety, if, and only if, the board finds enforcement of the requirement would impose extreme hardship substantially different in kind, and said enforcement would not be in the public interest. Among other factors, the board of public safety shall consider the previous license history and previous tax payment history of said applicant.
(Code 1971, § 21-2)
Sec. 74-2. - Deferral of sewer assessments.#
When authorized by the city finance director, the city sewer authority may provide temporary sewer assessment relief for all persons that would qualify for a tax credit under P.L. 1997, chapter 28, as amended, and subject to the conditions and definitions of that chapter. Such relief may include complete or partial deferral of the assessment until such time as the assessed property is partially or fully owned by any person that would not qualify for a tax credit under P.L. 1977, chapter 28.
Once any property subject to a sewer assessment is sold or otherwise transferred by an owner benefiting from a deferral of that assessment, all deferred assessments shall be payable by one or both of the parties to the transaction, together with all interest that has accrued on the assessment during the period of deferral.
The interest shall be limited to the amount which would have been due and payable on the installment due date, if the deferral had not been requested and approved, and payment had been made on time. Interest shall not be compounded and shall not be computed at the rate established for nonpayment of city taxes as said deferred payments are hereby deemed not to be overdue. Upon termination of the deferral period, payments due shall not exceed the amount which would have been due and payable if no deferral had been requested and authorized.
(Ord. No. O-98-3, § I, 2-9-98)
Editor's note— Section I of Ord. No. O-98-3, adopted February 9, 1998, amended Ch. 74 by adding § 74-146. For purposes of classification, such new provisions were included herein as § 74-2 at the discretion of the editor.
Sec. 74-3. - Waiver of interest on overdue tax payments#
(a)
The tax collector is hereby authorized to waive the interest for one quarter's payment and to reinstate quarterly tax payments on a resident's overdue tax payment if all of the following conditions are satisfied by the taxpayer:
(1)
The property subject to the overdue payment is the residence of the taxpayer and has been for at least five consecutive years; and
(2)
The request for a waiver of interest is in writing signed and dated by the taxpayer; and
(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 tax collector shall be in writing and contain a notice of the city council claim procedure. If the taxpayer receives an adverse decision from the tax collector, then within ten days of the decision of the tax collector, the taxpayer may file a claim for reimbursement of the interest with the city council.
(Ord. No. O-01-6, § I, 4-24-01)
Sec. 74-4. - Processing of tax payments.#
All payments of taxes received by mail shall be credited to a taxpayer's account as of the date of the United States Postal Service postmark on the envelope containing the payment.
(Ord. No. O-16-8, § I, 3-8-16)
Secs. 74-5—74-30. - Reserved.#
ARTICLE II. - EXEMPTION FROM PROPERTY TAX#
Footnotes:
--- (2) --- Cross reference— Buildings and building regulations, ch. 8.
State Law reference— Authority to establish tax exemption, G.L 1956, § 44-3-13.
Sec. 74-31. - Exemption for persons age 65 and older—Authorized.#
The city assessor is hereby authorized to grant an exemption from taxation of property located with the city, which exemption shall be in an amount not exceeding $12,000.00 of valuation of the real property owned and occupied or of the personal property owned by taxpayers who are domiciliaries of the city 65 years of age or older in accordance with the provisions of this article. The criteria of domiciliary, in addition to normal criteria, shall be evidence of voter registration, the address listed on tax returns, a driver's license and such other matters as the finance director may determine. Any person or persons who are recipients of this exemption in any other town, city, county, parish or state shall not be entitled to exemption in the city.
(Code 1971, § 21-16; Ord. No. O-12-12, § I, 6-12-12)
Sec. 74-32. - Same—Application to real and personal property; limit on exemptions granted to multiple owners.#
An exemption, when granted pursuant to section 74-31, may be applied to either the real property or the personal property owned by the taxpayer but may not be apportioned between real and personal property; provided, further, that only one such exemption may be granted to real property owned by joint tenants, tenants by the entireties, or tenants in common, or personal property owned by joint tenants or tenants in common.
(Code 1971, § 21-17)
Sec. 74-33. - Income-producing and business property ineligible for exemption.#
No income-producing residential property, business property or combination of residential and business property and no personal property used by the taxpayer in the conduct of business shall be entitled to the exemption provided in this article. It is the purpose of this article to limit said exemption to nonincome-producing residential real property and nonbusiness-use personal property.
(Code 1971, § 21-18)
Sec. 74-34. - Professional offices in homes and personal property used in business ineligible for exemption.#
Professional persons and business people who by law are permitted to operate and conduct their respective professions or businesses from their residences shall not be entitled to the exemption provided for by this article, nor shall such persons be entitled to such exemption on their personal property used in the conduct of their respective professions or businesses. The residences of such persons shall be determined, for the purpose of this article, to be income-producing property.
(Code 1971, § 21-19)
Sec. 74-35. - Real property containing not more than two residences deemed nonincome-producing property.#
Real property containing not more than two residential units shall be determined, for the purpose of this article, to be nonincome-producing real property.
(Code 1971, § 21-20)
Sec. 74-36. - Late applications.#
Beginning with the tax year as of December 31, 1986, and continuing for each succeeding tax year, taxpayers who are eligible for exemptions pursuant to this article, or as otherwise provided or authorized pursuant to G.L. 1956, § 44-3-1 et seq. as of the tax assessment date, for which they have not timely applied by the deadline set forth in this Code or in the Rhode Island General Laws, may request an abatement of assessment for the tax year of the request, but said taxpayers may not apply for previous tax years for which they may have been eligible. Any request made pursuant to this section must be made prior to December 15 of the year of the request.
(Code 1971, § 21-21)
Sec. 74-37. - Applications to be sworn; proof of qualification.#
Applications must be sworn to by the applicant under penalty of perjury. Proof of age, ownership, occupancy, residence and voter registration 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, or 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 assessor with a recorded deed or other land evidence record with regard to real property and with a bill of sale, registration certificate or other suitable evidence of ownership which is acceptable to the assessor with regard to personal property.
(3)
Occupancy. Occupancy of the residential property may be proven by incorporating such fact in the sworn application for exemption.
(4)
Residence. Residence may be established by voter registration, a license to operate a motor vehicle, a registration certificate for a motor vehicle, or other suitable evidence acceptable to the assessor.
(5)
Voter registration. Voter registration shall be established by the record of the board of canvassers.
(6)
Other forms of proof. An applicant may provide proof of right to exemption if the above-specified methods are not available to him or her by furnishing military records, passports, or a certificate of citizenship, or by such other evidence or proofs as may be required by the assessor.
(Code 1971, § 21-22)
Sec. 74-38. - Filing of application.#
Applications for exemption shall be filed hereunder at the times and in the manner as set forth in sections 74-36 and 74-41. Such exemption shall take effect and be applied to the taxes assessed as of December 31 of the year preceding the date of filing. The first exemptions granted under this article shall apply to taxes assessed as of December 31, 1976.
(Code 1971, § 21-23)
Sec. 74-39. - Exemptions to continue until terminated.#
Exemptions, once granted, shall continue in effect, without further application, until terminated as provided in this article.
(Code 1971, § 21-24)
Sec. 74-40. - Date of termination.#
(a)
Except as hereinafter provided in provided in subsection (b) of this section, all exemptions under this article shall terminate upon the occurrence of any of the following events:
(1)
Conveyance of the subject real property or sale of the subject personal property.
(2)
The exempted person moving his/her primary residence from the city.
(3)
An alteration of the character or use of the exempt property such that it becomes subject to the provisions of section 74-33, 74-34 or 74-35.
(b)
Effective with taxes assessed as of December 31, 1985, all exemptions under this article shall terminate on December 31 of the year of the death of the exempt person.
(Code 1971, § 21-25)
Sec. 74-41. - Circuit breaker tax credit.#
(a)
Application for elderly tax credit pursuant to P.L. 1977, chapter 28 ("circuit breaker"), as amended by P.L. 95-270, must be made to the city assessor no later than October 15, 1977, on forms to be supplied by that office.
(b)
Beginning January 1, 1978, and thereafter, applications for tax credit shall be filed with the city assessor no later than March 15 of each year.
(c)
Effective for the first full tax year after passage, the circuit breaker tax credit range allowed for under this section shall be $600.00 to $1,000.00.
(Code 1971, § 21-26; Ord. No. O-96-24, § I, 8-13-96; Ord. No. O-08-6, § I, 2-21-08)
Sec. 74-42. - Veterans' exemptions.#
(a)
The property of each person who serves in the military or naval services, as defined in G.L. 1956, § 44-3-4, or the unmarried widow or widower of such person, is hereby granted an exemption from taxation of property located within the city, which exemption shall be in an amount not exceeding $4,000.00 of assessed valuation of the real property owned and occupied in accordance with the provisions of this article. Said exemption shall be in addition to any and all other exemptions from taxation to which such person may be entitled by any other provisions of law.
(b)
In addition to the exemption provided in subsection (a) of this section and in addition to any and all other exemptions from taxation to which such person may be entitled by any other provision of law, any veteran who is determined to be totally disabled, as defined in G.L. 1956, § 44-3-4, is hereby granted an exemption from taxation of property located within the city, which exemption shall be in an amount not exceeding $10,000.00 of assessed valuation of the real property owned and occupied in accordance with the provisions of this article.
(c)
In addition to the exemption provided in subsection (a) of this section, and in addition to any and all other exemptions from taxation to which such persons may be entitled by any other provision of law, any veteran and the unmarried widow or widower of a deceased veteran of the military or naval service, who shall be determined under applicable law by the Veterans' Administration to be totally disabled through service-connected disability and who by reason of such disability has received assistance in acquiring specially adapted housing under laws provided by the Veterans' Administration, is hereby granted an exemption from taxation of property located within the city, which exemption shall be $20,000.00 of the assessed valuation of the real property owned and occupied in accordance with the provisions of this article and subject to the restrictions of G.L. 1956, § 44-3-4.
(d)
In addition to the exemptions provided heretofore, and in addition to any and all other exemptions from taxation to which such persons may be entitled by any other provision of law, there is hereby granted an exemption from taxation of property located within the city, which exemption shall be $15,000.00 of the assessed valuation of the real property owned and occupied by any veteran of military or naval service of the United States of America or of the unmarried widow or widower of such veteran of military or naval service of the United States of America, who has been or shall be classified as such, or determined to be, a prisoner of war by the Veterans' Administration of the United States.
(Code 1971, § 21-27; Ord. No. O-94-30, § I, 12-12-94; Ord. No. O-13-24, § I, 12-10-13)
Sec. 74-43. - Gold Star exemption.#
The city assessor is hereby authorized to grant an exemption from taxation of property located within the city, which exemption shall be in an amount not exceeding $6,000.00 of the valuation of the real property owned and occupied in accordance with the provisions of this article to Gold Star Parents, as defined G.L. 1956, § 44-3-5. Said exemption shall be in addition to any and all other exemptions from taxation to which such persons may be entitled by any other provisions of law.
(Code 1971, § 21-28)
Sec. 74-44. - Blind exemption.#
The city assessor is hereby authorized to grant an exemption from taxation of property located within the city, which exemption shall be in an amount not exceeding $18,000.00 of the valuation of the real property owned and occupied in accordance with the provisions of this article to any blind person, as defined and subject to the conditions of G.L. 1956, § 44-3-12. Said exemption shall be in addition to any and all other exemptions from taxation to which such persons may be entitled by any other provision of law.
(Code 1971, § 21-29; Ord. No. O-93-29, § I, 11-8-93)
Sec. 74-45. - Deferral of taxes in hardship cases.#
The city under certain circumstances makes provisions for hardship tax relief, wherein, if hardship is proven, the tax assessor authorizes tax deferrals to occur. Upon the sale of the premises by the owners who received the hardship tax relief by way of deferrals, all deferred taxes shall be payable with interest as determined by the city finance director to be due and payable on sale or transfer of title to the subject property.
(Code 1971, § 21-30)
Sec. 74-46. - Exemption for vehicles of persons with disabilities.#
The city exempts from taxation 50 percent of the value of any motor vehicle that has been specifically adapted with a wheelchair lift for use by an individual with a disability that is owned or registered by any person who has sustained the disability.
(Code 1971, § 21-30.1)
Cross reference— Persons with disabilities, ch. 50; traffic, ch. 76.
Sec. 74-47. - Method of calculating value of exemptions; application.#
Notwithstanding any other provision of this article which may be to the contrary, the amount by which the exemptions contained within this article shall reduce taxes owned by a taxpayer shall be determined by multiplying the exemption amount by the rate established for the excise tax on motor vehicles. Taxpayers may elect to apply said amount to either real estate, tangible, or motor vehicle taxes; provided, however, that it may not be apportioned over the various classes of property taxes. No reductions to the current motor vehicle tax rate of $34.60 per thousand which were made to comply with the requirements of R.I.G.L. § 44-34.1-1 (Excise tax phase-out), will be reflected in the calculation of personal exemption tax credits authorized by this article.
(Ord. No. O-97-12, § I, 6-9-97; Ord. No. O-21-11, § I, 7-22-21)
Sec. 74-48. - Real estate owned by disabled persons.#
(a)
The rate and valuation of taxes on the real and personal property of any head of a household who is 100-percent disabled and unable to work, as determined by the Social Security Administration or the Veterans Administration, shall not increase from the rate and valuation established as of the effective date of this section or the date of disability of such person, whichever is the later date.
(b)
The freeze of rate and valuation on real property shall only apply to single-family dwellings in which the disabled person resides.
(c)
The exemption shall not be allowed unless the person entitled thereto shall have presented to the tax assessor, on or before the last day on which sworn statements may be filed with the assessor for the year for which the foregoing exemption is claimed, due evidence that he or she is so entitled, which evidence shall stand so long as his or her legal residence remains unchanged. The foregoing exemption shall be in addition to any other exemption provided by law.
(Ord. No. O-98-19, § I, 6-8-98)
Editor's note— Ordinance No. O-98-19, § I, adopted June 8, 1998, amended Ch. 74 by providing for § 74-47. Inasmuch as § 74-47 already existed in the Code, such provisions were included herein as § 74-48 at the editor's discretion.
Sec. 74-49. - Wholesalers' stock in trade or inventory in foreign trade zone.#
(a)
The stock in trade or inventory of wholesalers located in a foreign trade zone shall be exempt from the tangible tax for a period of 25 years; provided, however, this exemption shall not be available to any wholesaler which [who] relocates to the city from any other city or town within the state.
(b)
This exemption and any wholesaler qualifying for the exemption are subject to the definitions, terms and conditions of G.L. 1956, § 44-3-29, as amended.
(Ord. No. O-98-21, § I, 6-8-98)
Editor's note— Ordinance No. O-98-21, § I, adopted June 8, 1998, amended Ch. 74 by providing for § 74-47. Inasmuch as § 74-47 already existed in the Code, such provisions were included herein as § 74-49 at the editor's discretion.
Sec. 74-50. - Persons age 70 and older.#
(a)
The tax rate and valuation of real property owned by persons who are 70 years of age or older and who reside in owner-occupied, single-family homes where the income from all sources does not exceed $7,500.00 for a single person and does not exceed $15,000.00 for married couples shall not increase while such persons own the property.
(b)
Persons seeking such relief shall make application for same to the tax assessor no later than March 15 of each year.
(Ord. No. O-98-39, § I, 10-19-98)
Editor's note— Ordinance No. O-98-39, § I, adopted October 19, 1998, amended Ch. 74 by providing for § 74-47. Inasmuch as § 74-47 already existed in the Code, such provisions were included herein as § 74-50 at the editor's discretion.
Sec. 74-51. - Open space land owned by the Mill Cove Conservancy.#
The real property described as Assessor's Plat 334, Lots 243 and 244, as said lots appeared in the records of the tax assessor as of December 31, 2006, held and used by the Mill Cove Conservancy, Inc., a not-for-profit corporation organized under the laws of the State of Rhode Island, and exclusively used for the purpose of conserving open space as that term is defined in G.L. § 45-36-1 et seq., shall be exempt from taxation by the city; provided, however, that before any such property is sold or otherwise disposed of, the transaction shall first be submitted to the city council for its approval upon such terms and conditions as the city council deems advisable.
(Ord. No. O-08-4, § I, 1-15-08)
Sec. 74-52. - Renewable energy system tax exemption.#
(a)
Authority.
(1)
Pursuant to G.L. § 44-3-3(a)(48) and (49), residential and manufacturing properties that install renewable energy systems are exempt from local taxation.
(2)
Pursuant to G.L. § 44-5-3(c) through (e), commercial renewable energy systems shall be subject to a tangible tax payment to the municipality through rules and regulations that have been adopted by the Rhode Island Office of Energy Resources (RIOER) for all commercial renewable energy systems.
(3)
Pursuant to G.L. § 44-3-21, city or town councils of the various cities and towns may, by ordinance, exempt from taxation any renewable energy system located in the city or town.
(b)
Tax levies and exemptions.
(1)
In accordance with G.L. § 44-5-3(c), the City of Warwick hereby authorizes its assessor to levy a tax on renewable energy tangible property as defined in G.L. § 39-26-5 in accordance with the rules and regulations executed by the RIOER.
(2)
In accordance with G.L. § 44-3-21, the City of Warwick hereby exempts from tangible personal property taxation commercial net metered renewable energy systems whose sole purpose is to offset electricity bills and not to sell power back to the electric distribution system.
(3)
Notwithstanding any exemption from tangible personal property taxation, the City of Warwick through its assessor retains the right to tax all land, buildings and other improvements located on such properties at fair market value.
(c)
Documentation.
(1)
Property owners installing renewable energy systems shall be required to provide the interconnection application between the renewable energy developer and the electric distribution company and any documentation of the program enrollment (e.g., renewable energy growth or net metering enrollment forms) to the City of Warwick indicating if the renewable energy system is net-metered or if the system is selling a portion or all of the energy produced back to the electric distribution company under the renewable energy growth program. A copy of the final interconnection service agreement executed between the renewable energy developer and electric distribution company shall be provided to the City of Warwick prior to construction of the renewable energy system.
(2)
Copies of all applications, documentation of the program enrollment, the final interconnection service agreement(s) and any other documentation relevant to any renewable energy system as determined by the tax assessor, shall be provided to the tax assessor.
(Ord. No. O-12-7, § I, 3-13-12; Ord. No. O-22-8, § I, 3-22-22)
Secs. 74-53—74-70. - Reserved.#
ARTICLE III. - DEFERRAL OF REAL ESTATE TAX PAYMENTS FOR AGED#
Sec. 74-71. - Application; conditions for granting.#
Citizens of the city age 65 years or older, or, in the case of a husband and wife, if either is age 65 years or older with the property held jointly in both names, who are otherwise eligible and who own and reside in dwellings on real estate, excluding mobile homes and house trailers, which are not income-producing properties, if the combined annual income from all sources of the husband and wife is $12,000.00 or less, or in the case of a single person if his or her gross income from all sources is $12,000.00 or less, may apply annually for one deferment per unit for deferral of the real estate taxes owing to the city assessed for each year, and such deferral, subject to approval of the finance director, will be granted under the following conditions: (1)
The applicant must have been a resident of the city and must have occupied the subject property for five years prior to his/her application.
(2)
No tax deferral will be granted on an application for a real property unit assessed by the tax assessor at $70,000.00 or more.
(3)
The current assessment of the tax assessor of the city will be used as a basis for determining the eligibility and the equity of the applicant, and no other real estate evaluation will be used.
(4)
The applicant must have reached his/her 65th birthday or, in the case of husband and wife, one of them, on or before the assessment date of the tax for which application of deferral is made, and must apply during the month of December prior to the assessment day for each year in which a tax deferral is applied for.
(5)
Deferrals will be considered only on applications for single-family real estate dwellings which are not income producing, and which are occupied by the applicant as a permanent residence.
(6)
The applicant may choose to defer either 50 percent or 100 percent of the annual tax at his/her option.
(7)
The deferred tax shall become a lien upon the property, and the applicant may remove the lien at any time by paying the amount due in full plus interest. The lien shall be recorded by the city clerk and shall continue until discharged by full payment of all deferred taxes and all interest thereon.
(8)
Interest on deferred taxes shall accrue at the rate established pertaining to delinquent tax accounts.
(9)
Deferments of taxes will be granted if the application shall be approved, only up to the amount of the equity owned by the applicant in the specific unit applied for.
(10)
A sufficient amount of fire insurance obtained by the applicant shall be required by the director of finance for the protection of the city's lien. The city shall be named in said policy of insurance as a lienor, and a certificate of the policy shall be filed with the director of finance.
(11)
The applicant must reapply annually for each year's deferment on the unit in which he/she resides, and a token payment of $1.00 shall be paid with the application form and applied to the applicant's annual tax. He/she must submit information with his/her annual application of his/her prior year's gross income as well as his/her wife's/husband's gross income from all sources, as shall be required by the director of finance.
(12)
No corporation or partnership or other form of business titleholder shall be eligible for a tax deferment, nor any holder of a life estate or remainder interest. Title ownership eligibility shall be limited to owners in fee simple, joint tenants, tenants in common and tenants by the entirety. In the case of joint tenants or tenants in common other than husband and wife, all such tenants must be 65 years of age or older and joint in the application and the restriction of gross income being $12,000.00 or less as for husband and wife shall apply to such groups of tenants.
(Code 1971, § 21-31)
Sec. 74-72. - Taxes due upon transfer of title; exception; priority of city's lien.#
(a)
Upon any change in the manner of holding title to the property, any transfer or mortgaging of the premises which are the subject of deferred taxes, other than the taking in fee simple of a husband or wife through survivorship of a joint tenancy or tenancy by the entireties, the entire amount of deferred taxes with accrued interest thereon at the prescribed rate must be paid to the finance director and the city's lien shall be discharged upon such full payment plus interest.
(b)
The city's lien shall take priority to and shall be the subject of demand for immediate payment in full of all taxes deferred plus interest thereon, in the event of any form of insolvency proceeding being filed with, by or against the applicant or applicants, petitioning the court to creditors arrangement, bankruptcy, partnership, receivership, or any other form of insolvency proceeding, immediately upon the filing of said petition.
(c)
Upon the death of an owner in fee simple applicant, or in the case of a husband and wife, upon the death of the surviving husband or wife, the accrued deferments shall be payable in full plus the prescribed interest before this lien shall be discharged, and said lien shall rank as a priority claim against the assets and the estate of the applicant or survivor, and as a priority lien against the real estate for which said deferred taxes were granted.
(Code 1971, § 21-32)
Sec. 74-73. - Enforcement and collection of tax lien.#
All taxes for which deferral is granted as provided herein shall, together with interest as provided herein, be and remain a lien upon the real estate against which assessed, and said lien shall be enforceable and collectible in the same manner as real estate taxes generally.
(Code 1971, § 21-33)
Secs. 74-74—74-100. - Reserved.#
ARTICLE IV. - DWELLING HOUSES OF CLERGY#
Footnotes:
--- (3) --- Cross reference— Buildings and building regulations, ch. 8.
Sec. 74-101. - Exemption from taxation.#
Dwelling houses and the land on which they stand, not exceeding one acre in size, owned by or held in trust for any religious organization and actually used by its officiating clergy, shall be exempt from taxation to an amount not exceeding $400,000.00 for each house and land owned and used.
(Code 1971, § 21-34; Ord. No. O-04-26, § I, 12-14-04)
State Law reference— Exemption authorized, G.L. 1956, § 44-3-3(6).
Secs. 74-102—74-120. - Reserved.#
ARTICLE V. - TRANSIENT LODGINGS TAX#
Footnotes:
--- (4) --- Editor's note— The provisions regarding transient lodgings tax are found in G.L. 1956, § 42-63.1-8.
Cross reference— Buildings and building regulations, ch. 8; roominghouses, tourist homes and cabins, ch. 62.
Secs. 74-121—74-145. - Reserved.#
ARTICLE VI. - WHOLESALE AND RETAIL INVENTORY#
Sec. 74-146. - Wholesale and retail inventory tax phase out pursuant to G.L. § 44-3-29.1.#
(a)
Beginning July 1, 1999, over a ten-year period, the stock in trade or inventory tax of wholesalers and retailers conducting operations within the City of Warwick shall be phased out. The phase out rate schedule to be implemented is set forth in subsection (d) below.
(b)
The terms "inventory," as it refers to wholesalers, "stock in trade", as it refers to wholesalers, and "wholesaler" shall have the same meaning as defined in G.L. § 44-3-29.
(c)
The terms "inventory," as it refers to retailers, "stock in trade," as it refers to retailers, and "retailer" shall have the same meaning as defined in G.L. § 44-3-40.
(d)
The rate schedule for the ten-year phase out of the wholesale and retail inventory tax shall be as follows:
Year Maximum Tax Rate per
$1,000.00 of Inventory
FY 1999 $31.83
FY 2000 28.65
FY 2001 25.46
FY 2002 22.28
FY 2003 19.10
FY 2004 15.92
FY 2005 12.73
FY 2006 9.55
FY 2007 6.37
FY 2008 3.18
FY 2009 No tax authorized
(e)
In the event that a wholesaler sold inventory or stock in trade both at wholesale and at retail in the preceding calendar year, the tax assessor shall assess on the same basis as a retailer's inventory or stock in trade as of December 31 of that year, to the extent permitted by applicable law, notwithstanding any freeze of assessed valuation or exemption permitted pursuant to G.L. § 44-5-12(c), that proportion of inventory or stock in trade of the wholesaler which shall be equal to the percentage of the wholesaler's total sales during the preceding calendar year that were at retail. For the purposes of this paragraph, sales at retail shall not include sales to employees of the wholesaler or to employees of its affiliates. If retail sales are less than one percent of total sales during the year, it shall be deemed that no sales were made at retail during the year. All sales of a wholesaler to a customer which is an affiliated entity shall be deemed to be retail sales for the purposes of this subsection if more than half of the dollar volume of the sales of the affiliated entity is made within the municipality.
(f)
For purposes of this section, a wholesaler shall be considered affiliated with customers if it controls, or is under common control with the customers.
(g)
In the event that a wholesaler or retailer subject to the inventory tax commences operations in the City of Warwick after fiscal year 1999, the tax assessor shall determine what would have been the value of the inventory as of December 1998, adjusting the inventory value to fiscal year 1999 using the changes in the consumer price index all urban consumers (CPI-U) published by the bureau of labor statistics of the United States Department of Labor. The director of the department of administration shall publish annually an adjustment schedule.
(Ord. No. O-99-4, 3-8-99)
ARTICLE VII. - TAX STABILIZATION FOR WARWICK INTERMODAL DISTRICT#
Sec. 74-147. - Declaration of purpose and findings.#
(a)
The city council has the authority, pursuant to the relevant provisions of G.L. § 44-3-9, as amended, to exempt from tax payment, in whole or in part, real and personal property which has undergone environmental remediation, is historically preserved, or is used for affordable housing, manufacturing, commercial or residential purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax.
(b)
The city council has determined that Warwick Intermodal District is a priority economic development opportunity for Warwick in that the presence of intermodal transportation in the district presents an opportunity for high-value, high-quality, mixed-use growth.
(c)
The city council has determined that in order to increase the pace of economic development and redevelopment in the Warwick Intermodal District, and thereby increase the city's tax base, it is vital that the city provide property developers, entrepreneurs and investors with a predictable tax phase-in plan that will encourage investment in the Warwick Intermodal District. The city council finds and declares further that it is in the public interest to develop a set of clear criteria for eligibility for tax stabilization, as well as a defined long-term plan to bring a project to full taxation. Accordingly, the city council finds that granting the stabilization provided for in this article will inure to the benefit of the city by reason of, but not limited to, the following:
1.
Increasing the willingness of residential, commercial, hospitality and mixed-use developers to locate in the Warwick Intermodal District;
2.
Increasing the willingness of business dependent and business efficient facilities to locate and expand with an increase in employment or the willingness of commercial, mixed-use and hospitality business development to locate, retain or expand its facility in Warwick and not substantially reduce its work force in Warwick;
3.
Resulting in improvement of the physical and infrastructure assets of a key intermodal area in Warwick which will result in a long-term economic benefit to Warwick; and
4.
Increasing the willingness of mixed-use commercial, hospitality and residential developers and property owners to construct new or to replace, reconstruct, convert, expand, retain or remodel existing buildings, facilities, with modern buildings, facilities, fixtures, equipment resulting in residential housing, hospitality and/or mixed use commercial building investment in Warwick's Intermodal District.
(d)
The city council in adopting the City of Warwick Comprehensive Plan 2013-2033 and in enacting a Historic Overlay Zoning District in the City of Warwick Code of Ordinances, Appendix A, Zoning, as amended, has determined that the redevelopment of certain existing structures within the City of Warwick's Historic Districts also satisfies the purposes and qualifies for the findings set forth above.
(Ord. No. O-16-13, § 1, 6-8-16; Ord. No. O-16-26, § I, 10-19-16)
Sec. 74-148. - Definitions.#
As used in this article, unless the context clearly indicates otherwise, the following words shall have the following meanings:
Applicant means the property owner of an eligible property and eligible project who initiates the property tax stabilization application process.
Development project means rehabilitation of an existing structure or construction of a new building.
Property means real and personal property which has undergone environmental remediation, is historically preserved, or is used for affordable housing, manufacturing, commercial, or residential purposes. "Property used for commercial purposes" means any building or structures used essentially for offices or commercial enterprises.
Warwick Historic District means an existing building and/or property entirely or partially located within a Historic Overlay Zoning District, as further identified in the historic and cultural resources element of the City of Warwick Comprehensive Plan 2013-2033 and as codified in sections 302.6 and 311 of this Code of Ordinances, appendix A, zoning, as amended.
Warwick Intermodal District means the zoning ordinance district established pursuant to the relevant provisions of this Code of Ordinances, appendix A, zoning, section 301.11 A, as amended. See map attached to Ord. No. O-16-13.
(Ord. No. O-16-13, § 1, 6-8-16; Ord. No. O-16-26, § I, 10-19-16)
Sec. 74-149. - Eligibility.#
(a)
To be eligible for a stabilization agreement under this article, the property to be stabilized must be part of a development project that meets the following criteria:
(1)
The development project must located entirely within the Warwick Intermodal District, as set forth in section 74-148(c), as amended, herein.
(2)
The development project must have a project cost of construction of not less than $5,000,000.00.
(3)
The project must be compliant with the city centre master plan, as amended, and section 507 of the city zoning ordinance entitled "Warwick Station Development District" (inclusive), as well as the table 1 use regulations "intermodal" zoning for uses allowed within the district along with any provisions of the zoning ordinance regulating the use of the project.
(4)
If the development project is eligible because it is located within the Warwick Historic District, the development project must also satisfy at least two of the three eligibility criteria: (i) the redevelopment of the existing structure(s) within the Warwick Historic District shall also be set forth as a goal of the city in the City of Warwick Comprehensive Plan 2013-2033; (ii) the redevelopment involves the preservation of a significant contributing structure within the Warwick Historic District; and (iii) the development project has secured tax credits under the Rebuild Rhode Island Tax Credit Programs defined herein and/or the Rhode Island Historic Tax Credit Act, R.I. G.L. §44-3.6-1 et. seq.
(b)
Construction of a development project receiving a tax stabilization agreement must begin construction within 12 months and must be completed within 36 months of the effective date of the stabilization agreement.
(c)
No development project which includes, but is not limited to, a proposed use, business, or commercial operation relocating a facility from a city or town within the state to Warwick shall be eligible for a tax stabilization agreement under this article. Additionally, there shall be a committee to review compliance with this anti-cannibalization clause comprised of the director of city planning, the city tax assessor and the city council finance chair or his or her designee.
(d)
Any applicant for tax stabilization pursuant to this article must be current on all tax, user fees and any other payments owed to the city and otherwise in good standing to operate as a business in the state as of the time of application for a tax stabilization agreement.
(e)
This tax stabilization program shall end on December 15, 2027. No application for a tax stabilization program shall be accepted after that date.
(Ord. No. O-16-13, § 1, 6-8-16; Ord. No. O-16-26, § I, 10-19-16)
Sec. 74-150. - Stabilization schedule.#
(a)
For the first five years of the tax stabilization period, the tax assessment on the property that is the subject of an application for a tax stabilization agreement pursuant to the relevant terms of this article shall be the "base tax," which shall have been determined prior to the commencement of the stabilization period by the city tax assessor in the following manner:
(1)
If the site is subject to property taxes prior to the commencement of the stabilization period the assessed valuation at the time of application shall be the basis to determine the tax amount to constitute the "base tax" for the purpose of the tax stabilization agreement.
(2)
If the site is not subject to property taxes prior to the commencement of the stabilization period, the assessor shall determine the property valuation at the site, and the "base tax" shall be based on that valuation.
(b)
As consideration for receiving the benefits provided for in a tax stabilization agreement, the applicant, any successor-in-interest, any owner/lessor and/or lessee/tenant of the property waives and releases any and all rights to appeal or otherwise challenge the base tax assessed value during the five-year base tax period. This waiver shall terminate upon expiration of the five-year base tax period. All rights to appeal or otherwise challenge a tax assessment pursuant to the relevant provisions of the General Laws shall apply upon expiration of the base tax period under any tax stabilization agreement.
(c)
Upon issuance of a certificate of occupancy for the project, the tax assessor shall assess the project, and the project shall thereafter be reassessed according to the city's regular revaluation cycle.
(d)
Property eligible for a tax stabilization under this article shall be taxed pursuant to the following schedule:
Year Tax Abatement
1 Base Tax
2 Base Tax
3 Base Tax
4 Base Tax
5 Base Tax
6 90% of assessed value exempt from tax
7 80% of assessed value exempt from tax
8 70% of assessed value exempt from tax
9 60% of assessed value exempt from tax
10 50% of assessed value exempt from tax
11 40% of assessed value exempt from tax
12 30% of assessed value exempt from tax
13 20% of assessed value exempt from tax
14 10% of assessed value exempt from tax
15 0% of assessed value exempt from tax
In year 15 and thereafter, the development project will be taxed at the then-assessed value and be taxed at the then-normal rate applied by the city.
(Ord. No. O-16-13, § 1, 6-8-16)
Sec. 74-151. - Application procedure for stabilization.#
(a)
The application procedure shall proceed as follows:
(1)
An applicant shall apply to the city's tax assessor's department for a tax stabilization agreement under this article prior to obtaining a building permit. The application shall be on a form prescribed by the city's tax assessor's department and shall include:
a.
The program of building, alterations and/or improvements to be made;
b.
A certification from the applicant that the project meets the eligibility requirements set forth in section 74-149(a)(2) herein.
c.
A non-refundable filing fee of $3,500.00 which shall be used by the tax assessor to retain a peer review to validate whether the development project meets the investment costs set forth in this article to qualify for eligibility.
(b)
Upon receipt of an application, the tax assessor's department shall forward the application to the city planning department for review. Within 20 days of the filing of the application with the tax assessors department, the planning department shall determine whether the development project meets the minimum requirements set forth in section 74-149 herein.
(c)
Within 30 days of the filing of the application for a tax stabilization agreement with the tax assessor's department, the tax assessor's department shall either deem the application complete or provide a written response to the applicant detailing any deficiencies in the application.
(d)
Once the application is deemed complete, the tax assessor's department shall prepare a tax stabilization agreement with the applicant pursuant to and upon the terms set forth in this article. A fully executed tax stabilization agreement with the city is required for a development project to receive the tax stabilization provisions provided for under this article.
(e)
The tax assessor's department, together with the planning department, shall develop standardized forms and additional procedures consistent with this article, as they deem necessary and proper to effectuate the terms and provisions of this article.
(f)
Nothing shall prohibit an applicant having submitted an application deemed incomplete or ineligible from subsequently re-applying for a tax stabilization agreement under this article.
(Ord. No. O-16-13, § 1, 6-8-16)
Sec. 74-152. - Miscellany.#
(a)
The benefits of a tax stabilization agreement obtained pursuant to this article shall be transferable to property owners and tenants, but the duration of the stabilization period shall not be extended. The city council may, upon application made by an applicant on a form provided by the city clerk's office, provide an extension and/or revision to a tax stabilization agreement at their sole and absolute discretion.
(b)
The receipt of a tax stabilization agreement under this article shall not deprive any person of the right to appeal the valuation or calculation of the taxes assessed from time to time, except as provided for in 74-150(b).
(c)
Nothing herein shall prohibit the city council from extending a tax stabilization agreement on different terms to a development project that would otherwise qualify for stabilization under this article.
(d)
Annually, the tax assessor shall have performed a peer review audit to validate that all performance criteria for the development project to remain eligible for the tax stabilization program. An annual audit filing fee shall be established by the tax assessor to reflect the actual cost, without any mark-up or contingency, of the required annual peer review compliance audit.
(e)
Nonpayment or late-payment of taxes due under this article shall render the terms of any tax stabilization agreement null and void if such non-payment or late payment is not cured within 60 days of any such delinquency; provided however, that the taxpayer may petition the city council to keep the tax stabilization agreement in place one time during the term of the agreement. In addition, all authority granted to the city in the General Laws to sell property at tax sale shall remain in full force and effect during the period of any tax stabilization agreement.
(f)
Upon execution of a tax stabilization agreement, the tax assessor shall notify and provide a copy of the agreement to the city council.
(Ord. No. O-16-13, § 1, 6-8-16)
Sec. 74-152. - Severability.#
If any one section of this article is found to be unenforceable, then the other provisions herein shall continue to have the same force and effect as if the unenforceable provision were not passed as part of this article.
(Ord. No. O-16-13, § 1, 6-8-16)