Authorizes the town of Smithfield to set rates that more closely relate to the changes in values and ensure that the tax classification system creates fair and equitable taxation between residential and commercial property.
Summary
S1122 amends Rhode Island’s local tax law to give the town of Smithfield specific authority over its property tax classification and valuation system. The bill updates the statute governing Smithfield so the town assessor must annually determine full and fair cash value for taxable real and personal property and motor vehicles, then apportion the local tax levy among property classes. It preserves separate tax rates for Class 1 residential property and Class 2 commercial/industrial property, requires those rates to remain uniform within each class, and keeps Class 3 tangible personal property capped at the 2017 tax rate until the rate relationship described in state law is met.
The measure is aimed at allowing Smithfield to adjust tax rates more closely to changes in property values and to maintain a more equitable balance between residential and commercial taxation. It also clarifies the property class definitions used for Smithfield’s local tax system, including residential real estate, commercial and industrial property, and tangible personal property, while referencing state law governing motor vehicles. The act takes effect immediately upon passage.
Impact
The bill makes a targeted amendment to Rhode Island General Laws § 44-5-20.16, which applies only to the town of Smithfield. It affects how Smithfield calculates assessed values, allocates its tax levy among property classes, and sets tax rates for residential, commercial, and tangible personal property. The practical effect is to preserve local flexibility in tax classification and rate-setting while keeping the system tied to state property-tax rules and class definitions.
Sentiment
The available record shows strong support for the bill. It passed the Senate 34-0 and the House 72-0, indicating unanimous approval in both chambers. The bill’s stated purpose—to better align tax rates with property value changes and promote fairness between residential and commercial taxpayers—appears to have been broadly accepted.
Contention
No committee testimony or recorded debate is provided, and the roll-call votes show no opposition. Based on the bill text and caption, the main policy issue is the balance between residential and commercial tax burdens in Smithfield, along with how much discretion the town should have in adjusting its tax classification system. Any potential concern would likely center on the local tax impact on homeowners, businesses, or owners of tangible personal property, but no explicit objections are reflected in the available materials.