Permit the town of East Greenwich to deny issuance or renewal of licenses or permits for properties on which the taxes and/or assessments are in arrears.
Summary
H6364 is a local tax-enforcement bill for the town of East Greenwich. It adds a new section to Rhode Island’s laws on collection of taxes generally to authorize the town to withhold or refuse renewal of certain business licenses and permits when an applicant is delinquent on local taxes, liens, or assessments tied to the business. The bill also requires verification from the town’s tax or assessment collection agency that amounts due are paid current before a license or permit may be issued or renewed.
The bill further extends this authority to building and demolition permits for new construction, renovation, or alteration of a property when the property owner is in arrears on real property taxes, liens, or other town assessments for that same property. An exception is included for work needed to abate a pending notice of violation. The measure also allows the licensing or permitting authority to issue a license or permit if the applicant has entered an approved repayment plan and is making required payments.
Impact
The bill creates a town-specific exception within Rhode Island’s general tax collection statutes, giving East Greenwich an additional enforcement tool to encourage payment of local taxes and assessments. It affects business owners, property owners, and applicants for municipal licenses and permits by conditioning access to those approvals on tax compliance, while preserving discretion for approved repayment plans and protecting projects that remedy code or violation issues. The act takes effect immediately upon passage.
Sentiment
The available voting history suggests broad support for the measure, with unanimous passage in the House and strong approval in the Senate. No committee transcript is available, but the final votes indicate the bill was viewed favorably as a local revenue-collection and compliance measure. The lack of recorded opposition in the House and only limited opposition in the Senate suggests the proposal was generally noncontroversial, though not entirely unanimous in the upper chamber.
Contention
The main policy tension is between municipal tax enforcement and the ability of property owners or businesses to obtain permits needed to operate, build, or renovate. Supporters likely view the bill as a practical way to improve collection of overdue local taxes and assessments, while potential critics may worry it could delay development, business operations, or property improvements for taxpayers with arrears. The bill addresses that concern in part by allowing permits when a repayment plan is in place and by exempting work needed to correct violations.