RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES
Summary
H7568 amends Rhode Island’s local tax law to let cities and towns, if they choose by ordinance, waive interest on one overdue quarterly property tax payment and allow the remaining tax balance to be paid on a quarterly schedule. The waiver is limited to taxpayers whose property is either their residence or commercial property, has been owned/used for the prior five years, and who can show five years of timely tax payments before the overdue bill. The request must be in writing, and the overdue bill must have been issued less than two years before the waiver request.
The bill caps any interest waiver at $500 and requires the tax collector to issue a written decision with notice to the city or town council. If the tax collector denies the request, the taxpayer must first pay the interest and may then seek reimbursement from the city or town council within ten days. The bill also states that any request meeting the ordinance-based criteria must be granted, making the waiver mandatory for municipalities that adopt such an ordinance and for applicants who satisfy the conditions.
Impact
This bill would amend Section 44-5-8.1 of the General Laws governing levy and assessment of local taxes by expanding the existing interest-waiver framework to include overdue property tax payments tied to commercial property as well as residences. It preserves municipal discretion to adopt the program by ordinance, but once adopted, it creates enforceable eligibility criteria and a process for written decisions and council review. The practical effect is to give qualifying property owners a limited relief mechanism from late-payment interest while leaving the underlying tax principal due.
Sentiment
The available voting history suggests the bill was broadly supported, passing the House 60-1. The absence of committee transcript material limits insight into detailed debate, but the strong vote indicates general agreement with providing a narrow, structured form of tax relief. The bill’s framing as a limited waiver rather than a broad tax reduction likely contributed to its favorable reception.
Contention
The main points of contention likely concern whether municipalities should be allowed to waive interest on overdue property taxes at all, and whether the relief should extend to commercial property owners in addition to homeowners. Another possible issue is the mandatory language for qualifying requests once a city or town adopts an ordinance, which reduces local discretion and could be viewed as constraining tax collection authority. The $500 cap, five-year payment history requirement, and two-year age limit on the overdue bill appear designed to address concerns about abuse and fiscal exposure.
Makes certain technical amendments /clarifications to the statutes relating to the assessment of real property and the timing and process to appeals thereof.
Makes certain technical amendments /clarifications to the statutes relating to the assessment of real property and the timing and process to appeals thereof.
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.
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.