[Ord. of 10-16-1985,
§ I; Ord. No. 95-9, § 1, 4-19-1995; Ord. No. 99-54A, § 1, 1-19-2000; Ord. No. 03-03, § 1, 2-5-2003; Ord. No. 05-06A, § 1, 4-6-2005; Ord. No. 08-06, § 1, 3-19-2008; Ord. No. 11-04-A, § 1, 5-4-2011; amended 4-19-2017 by Ord. No. 17-07A; 4-20-2020 by Ord. No. 20-09; 4-26-2023 by Ord. No. 23-10A]
(a)
Pursuant to the Rhode Island General Laws, real and personal property
situated within the Town may be exempt from taxation up to the amounts
established for each exemption listed in this section. The maximum
aggregate exemption from taxation for any combination of the exemptions
listed in this section shall be $80,026.
(1)
For veterans and unmarried widows of veterans, limit of exemption:
$32,737.
(2)
For gold star parents, limit of exemption: $32,737.
(3)
For the blind, limit of exemption: $65,473.
(4)
For the veteran who are also classified as totally disabled through
service-connected disability, limit of exemption: $65,473.
(5)
For persons who are 65 years of age or older and who own and occupy
real property, limit of exemption: $65,473.
(b)
In addition to the exemptions for persons who are 65 years of age
or older listed in Subsection (a)(5), any such person may apply for
an additional exemption of $14,552, provided their annual income falls
within the following limits:
For a single owner of a single-family dwelling which is owner
occupied, there is an income limit of $10,500. That limit is increased
to a maximum of $15,000 for two or more owners of an owner occupied,
single-family dwelling.
(c)
For any veteran or unmarried widow/widower of a veteran who has been
determined to be a prisoner of war, limit of exemption is $65,473.
(d)
Eligible persons shall apply with the Tax Assessor on or before March
15 for exemptions to be applied to taxes for the following year and
continuing thereafter as long as said persons remain eligible. Any
exemption under Subsection (a)(5) and/or (c) above shall be granted
to said person otherwise eligible, only if said person has been a
resident of and continuously resided in the Town for at least one
year prior to the date of application for exemption.
[Ord. No. 92-15, §§ 1,
2, 6-3-1992]
(a)
INVENTORY OR STOCK IN TRADE OF A WHOLESALER
WHOLESALER
Definitions. The following words, terms and phrases, when used in
this section, shall have the meanings ascribed to them in this subsection,
except where the context clearly indicates a different meaning:
Includes the merchandise kept on hand for sale in the normal
and regular course of a wholesale business.
Includes a person, partnership, corporation or other business
entity which is primarily engaged in the business of selling goods
for subsequent resale by its customers (at least 50%), and has duly
made application for such status pursuant to Subsection (e) of this
section. Except as provided in Subsection (d) of this section, no
distinction shall be drawn between a wholesaler all or a portion of
the sales of which are sales to one or more customers affiliated with
such wholesaler, and a wholesaler the sales of which are exclusively
sales to customers not affiliated with such wholesaler. A wholesaler
shall be considered affiliated with customers if it controls, is controlled
by or is under the common control with such customers.
(b)
Phaseout. Effective for the assessment of tangible personal property
to be made as of December 31, 1992, and December 31, 1993, the Town
Assessor shall not increase the assessed valuation of the inventory
or the stock in trade of a wholesaler from those values assessed on
December 31, 1991.
(c)
Exemption. Beginning with the assessment of tangible personal property to be made as of December 31, 1993, and thereafter through the later to occur of December 31, 2013 or action by the Town Council, effective subsequent to such date, to repeal this section, no tax shall be assessed with respect to the inventory or stock in trade of a wholesaler, except as provided in Subsection (d) of this section.
(d)
Apportionment. If a wholesaler sold inventory or stock in trade both at wholesale and at retail in the preceding calendar year, the Town Assessor shall assess on the same basis as retailer's inventory or stock in trade as of December 31 of such year, to the extent permitted by applicable law, notwithstanding Subsection (b) or (c) of this section, that proportion of the inventory or stock in trade of such wholesaler which shall be equal to the percentage of such wholesaler's total sales during the preceding calendar year that were at retail. For the purposes of this subsection, sales at retail shall not include sales to employees of the wholesaler or to employees of its affiliates. If retail sales are less than 1% of the total sales during such year, it shall be deemed that no sales were made at retail during such year. All of the sales of a wholesaler to a customer which is an affiliate entity shall be deemed to be retail sales for the purposes of this paragraph if more than half of the dollar values of the sales of such entity is made within the Town.
(e)
Application procedure. Persons, partnerships, corporations and other
business entities desiring the benefits of this section shall annually
file an application on the forms to be provided by the tax assessor
for such purpose at the time provided for the filing of an account
pursuant to G.L. 1956, § 44-5-15. Each application shall
be sworn to by the applicant under penalties of perjury. Such application
shall contain:
(1)
A statement of the applicant's name and the address at which the
inventory or stock in trade is located;
(2)
A statement that the applicant is a wholesaler within the meaning
of this section;
(3)
A statement as to whether the applicant made any retail sales during
the preceding calendar year; and
(4)
If the applicant made sales of merchandise at retail; in the preceding
calendar year, a statement of the percentage of applicant's total
sales which represent sales at retail in such calendar year.
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The applicant also shall provide to the tax assessor such additional
information, certifications, records or proof as the tax assessor
deems requisite.
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(f)
Effective date. This section shall be effective with respect to the
tax assessment to be made as of December 31, 1993 and thereafter,
and any exceptions from tax contained in this section may not be repealed
with respect to tax assessment to be made prior to December 31, 2014,
provided that the foregoing shall not preclude or restrict amendment
to procedural or definitional portions of this section to take account
of changes in law or circumstances or better to carry out the intentions
of the Town Council.
[Ord. No. 96-33, § 1, 1-7-1997]
(a)
ELIGIBLE PROPERTY
QUALIFYING TAXPAYER
TECHNOLOGY PROPERTY
Definitions. The following words, terms and phrases, when used in
this article, shall have the meanings ascribed to them in this section,
except where the context clearly indicates a different meaning:
In the calendar year such property is acquired any technology
property that has been acquired by a qualifying taxpayer after the
taxpayer has submitted a certificate to the tax assessor requesting
that the property be certified as technology property and that the
taxpayer be classified as a qualifying taxpayer and the tax assessor
has approved such request and in any subsequent calendar year shall
mean property that in the prior calendar year qualified as eligible
property and was covered in the annual recertification request filed
by the taxpayer with the tax assessor for the current calendar year
requesting acknowledgment that the property continues to qualify as
technology property and that the taxpayer continues to qualify as
a qualifying taxpayer and the tax assessor has approved such request.
Technology property that was acquired prior to the date the tax assessor
acknowledged the property qualified for classification as eligible
property shall never be eligible for the property tax exemption provided
in this article.
Any business (other than as set forth herein), in whatever
form operated, that currently owns or leases or anticipates owning
or leasing property in the Town for use in conducting such business.
The phrase does not include a business that has less than 40 full
time employees in the Town or a business that is principally engaged
in the Town or elsewhere in making retail sales, extracting minerals
or other raw materials, distributing merchandise or other goods or
providing professional or similar services, which shall include but
not be limited to health related services (such as medical, dental,
surgical, nursing or diagnostic services), legal, accounting, engineering,
drafting, architectural, real estate brokers and benefits consulting
services. To be treated as a qualifying taxpayer, a business must
currently employ or establish that it reasonably anticipates within
12 months that it will employ within the Town at least one full time
employee for every 250 square feet of office space and at least one
full time employee for every 450 square feet of manufacturing and
other non-office space that it owns or leases in the Town. The number
of full time employees of a business shall be determined using the
rules set forth in G.L. § 42-64.5-2 to determine the number
of "full time equivalent active employees" of the business. A business
leasing property to a qualifying taxpayer during a fiscal year will
be treated as a qualifying taxpayer for that period if the lessee
of such property qualifies as a "qualifying taxpayer" and the certification
or recertification requirements set forth herein are otherwise satisfied.
Any investment in (i) main frame computers, or PC based area
wide networks or PC based local area networks that includes at least
25 workstations and (ii) research and development equipment to the
extent such equipment would qualify for the sales and use tax exemption
available in G.L. § 44-18-30(43).
(b)
Findings. The Town Council finds that providing an incentive for
new investments in technology property as authorized by G.L. § 44-3-3.1
will help attract and maintain local businesses and will promote public
welfare.
(c)
Administration. The tax assessor shall promulgate all certification
and annual recertification forms within the requirements of this article
and shall set forth the due dates for the filing of all such forms.
The tax assessor shall respond to any completed request for certification
or annual request for recertification by either approving the request
or denying the request within 10 business days after the completed
request has been received in the office of the tax assessor. The tax
assessor, to assure continued compliance with the requirements set
forth herein, shall deny the exemption for eligible property that
would otherwise be available to a qualifying taxpayer in any calendar
year if the taxpayer fails to file a timely accounting for such year
as required pursuant to G.L. § 44-5-15 and to provide in
connection with that filing such information as the tax assessor may
request to establish that the taxpayer is entitled to the exemption
claimed for such year. If the taxpayer cannot establish for that year
that it met or continued to meet the employment requirements set forth
herein, but it can establish for such year that it met at least 90%
of those requirements, it shall be entitled for such year to a proportionate
part of the exemption.
(d)
Appeals. Appeals of decisions of the tax assessor under this article
shall be to the Board of Assessment Review for a full hearing de novo.
(e)
Technology property exemption.
(1)
Any qualifying taxpayer owning during a calendar year eligible property
shall be exempt from property tax on such property. This exemption
shall not apply to any other liability against the property due the
Town, such as water or sewer assessment. This exemption shall also
not apply to the property tax liability attributable to subsequent
periods unless the property retains its classification as eligible
property. In addition, this exemption shall be forfeited by the owner
of property who shall be delinquent in the payment of any tax or other
liability due the Town, whether against such property or other property
owned by the owner in the Town.
(2)
Notwithstanding any provision in this article to the contrary, a
qualifying taxpayer shall not be entitled to the property tax exemption
set forth herein if such taxpayer moved its business operation to
the Town from another community in this state and the exemption would
not otherwise be allowed under G.L. § 44-3-3.1.
[Ord. No. 97-14, § 1, 5-7-1997]
The Town will allow real estate taxes to accrue without interest
for applicants that meet all of the requirements listed below:
(1)
The property taxes of a qualified applicant will be deferred until
a transfer of the property occurs. Full payment will be due upon transfer.
A payment plan will be developed by the tax assessor and tax collector
for qualified applicants whose income rises above current income limits
when property is not being transferred.
(2)
A lien will be recorded with the Town Clerk's office upon the approval
of the applicant.
(3)
Individual receiving this tax deferment shall not be subject to tax
sale.
(4)
The property owner shall deed the property to the Town and retain
a life estate for him/her in situations where the tax due exceeds
the value of the property. The Town will not make any further attempt
to recover any unpaid taxes.
(5)
Income limits: Qualified applicants shall have households incomes
below the current Federal Poverty Guidelines.
(6)
Property type: This deferment will cover the real estate taxes of
a property owner's primary residence only. The value of the real estate
must be less than $150,000.
(7)
Assets: Total bank accounts or similar funds must be less than the
annual property tax due.
(8)
Total current value of motor vehicles must be less than $5,000.
(9)
The applicant cannot have an interest in any other parcel of real
estate.
(10)
All other assets with a value of over $1,000 must be disclosed to
the tax assessor.
(11)
Application date: Property owners must apply by March 15 annually.
Copies of the last two years tax returns shall accompany all applications.
[Ord. No. 02-35, § 1, 2-5-2003; Ord. No. 11-04-A, § 1, 5-4-2011]
(a)
The Tax Assessor is hereby authorized to grant every person who is a citizen and resident of the Town who is determined to be totally disabled by the Social Security Administration an exemption on the assessed valuation of the person's residential real property. The amount of the exemption will be in accordance with the schedule set forth below, and entitlement to the exemption shall be determined by the person's compliance with the Town's rules and regulations for exemption from property taxes for persons who are totally disabled in Subsection (c) of this section.
[Amended 4-19-2017 by Ord. No. 17-07A]
(b)
Schedule of exemptions:
[Amended 4-19-2017 by Ord. No. 17-07A; 4-20-2020 by Ord. No. 20-09; 4-26-2023 by Ord. No. 23-10A]
(1)
Taxpayers having an annual household income, as that term is defined
in the rules, of less than $10,500 shall receive an exemption of $34,427
of the assessed valuation.
(2)
Taxpayers having an annual household income, as that term is defined
in the rules, of at least $10,500 but less than $15,000 shall receive
an exemption of $27,543 of the assessed valuation.
(3)
Taxpayers having an annual household income, as that term is defined
in the rules, of at least $15,000 but less than $20,000 shall receive
an exemption of $20,656 of the assessed valuation.
(4)
Taxpayers having an annual household income, as that term is defined
in the rules, of at least $20,000 but less than $25,000 shall receive
an exemption of $13,771 of the assessed valuation.
(c)
Rules and regulation for exemption from property taxes for persons
who are totally disabled:
(1)
All applicants must be determined to be totally disabled by the social
security administration and must be under the age of 65 years.
(2)
Applicants must be legally domiciled and must have actually resided
in the Town for a period of five years ending with the date of assessment
for the year which exemption is claimed (the year following the date
of assessment). Absence from this Town for a period of one year shall
constitute prima facia evidence of abandonment of domicile. In those
instances where absence in excess of one year is due solely to hospitalization
or other residential medical treatment (nursing homes and the like),
the tax assessor is authorized to review individual cases and waive
the absence standard, provided that all other requirements are satisfied
and the facts presented so warrant.
(3)
The applicant must own or live and live in the house to which the
exemption is to be applied and must have owned that dwelling for at
least two years prior to the date of assessment for which the exemption
is claimed.
(4)
No income-producing property, residential or otherwise, shall be
entitled to an exemption.
(5)
Professional persons who operate and conduct their respective professions
from their residences shall not be entitled to an exemption.
(6)
Only one exemption will be granted to joint tenants, tenants by the
entirety or tenants in common, even though all such tenants meet eligibility
requirements.
(7)
Tax assessor's "application for exemption" form must be filled out
in its entirety and submitted each year to the tax assessor.
(8)
The tax assessor's confidential statement of annual income must:
a.
Be filled out in its entirety;
b.
Indicate whether or not the claimant is required under law and regulation
to file a state personal income tax return;
c.
Waive, by signature of the unmodified waiver contained in the form,
the applicant's Privacy Act rights with respect to tax assessor's
confidential confirmation of claimed income;
d.
Submitted to the tax assessor each year with the application for
exemption form.
(9)
All required forms must be filed with the tax assessor on or before
March 15 (or the next normal business day following) of the year for
which application is made. If the applicant was required to submit
a state personal income tax return for the year prior to that for
which application for exemption is made, a copy of that return shall
be submitted to the tax assessor by April 16. No exemption shall be
approved in the absence of the state personal income tax return or
statement that such return was not required. All statements concerning
income, whether or not taxable, are subject to independent verification
by the tax assessor. These forms, and the state personal income tax
return, are required as due evidence that the applicant is, in all
respects, qualified for the relief provided by this article. All statements
are subject to verification and the burden of proof for all requirements
shall be with the applicant. The tax assessor may require certified
proof of place and date of birth, voter registration, period of abode
or domicile and ownership of property.
(10)
Household income shall be computed on the basis of the calendar
year and shall include all earned and unearned income. Earned income
shall include wages, salaries, fees and monies received for personal
services rendered. Unearned income shall include, but not limited
to:
a.
Gifts.
b.
Pensions and annuities.
c.
Insurance proceeds (other than medical).
d.
Social security benefits.
e.
Supplementary security income and attendant state and federal
supplementary benefits.
f.
Interest (regardless of source).
g.
Dividends.
h.
Net income from business, farm, rental and capital gains as
determined in accordance with the rules and regulations of the United
States Treasury Department's Internal Revenue Service.
(11)
Exemptions shall terminate upon the death or removal of the
person receiving the exemption (except in those cases where there
is a surviving, qualified spouse) or upon sale of the exempted property.
(12)
The tax assessor may, at any time, inquire into the right of
a claimant to the continuance of an exemption under this section and
for that purpose the tax assessor may require the filing of a new
application or the submission of such proof as deemed necessary to
determine the right of the claimant to continuance of such exemption.
(13)
If the tax assessor denies a claim for exemption and terminates
a previously approved exemption, the claimant may appeal the tax assessor's
decision to the Town's tax assessment board of review.
(14)
The office of the tax assessor shall take the following action
to ensure maximum dissemination of information concerning granting
a tax exemption for the totally disabled.
a.
Advertise the potential for tax relief in the newspaper at least
two times per month between January 1 and the closing date for receipt
of exemption applications.
b.
Mail all necessary application forms to potentially qualified
applicants not later than January 15 of the current tax year. The
term "potentially qualified applicants" includes:
c.
Provide such assistance to applicants as may be required to
assure accurate and complete applications.
[Added 1-20-2016 by Ord.
No. 15-25]
[Added 1-20-2016 by Ord.
No. 15-25]
The additional cost or value of any renewable energy system
or device which is being utilized as a primary or auxiliary power
system for the purpose of heating or otherwise supplying energy needs
of any residential, commercial or industrial property upon which said
system or device is located, not to exceed 250 kW, shall be exempt
from taxation.
[Added 1-20-2016 by Ord.
No. 15-25]
The additional cost or value of any renewable energy system
or device in excess of 250 KW primarily utilized to produce energy
for sale beyond the residential, commercial or industrial property
may be exempted from taxation only if a contractual agreement is approved
by the Town Council for the amount of property value to be exempt.
[Added 1-20-2016 by Ord.
No. 15-25]
An application for a renewable energy system tax exemption shall
be made to the Town Tax Assessor no later than January 1 of each year
on forms to be provided by the Tax Assessor.
[Added 5-18-2016 by Ord.
No. 16-10]
(a)
In accordance with the authority granted to the Town of Cumberland
pursuant to G.L. § 44-5-8.1, the Finance Director, subject
to the approval of the Mayor, is authorized to waive interest on one
quarter's overdue real property tax payment, subject to the terms
and conditions below, and allow the remaining balance of real property
taxes owed for that year to be paid on a quarterly basis if all of
the following conditions are satisfied by the taxpayer.
(1)
The property subject to the overdue property tax is the residence
of the taxpayer and has been for the five years immediately preceding
the property tax payment which is overdue.
(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 property taxes to the
town 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 property tax 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 property tax bill exceed
$500. Decisions of the Finance Director shall be in writing with notice
sent to the Town Council. If the taxpayer receives an adverse decision
from the Finance Director, the taxpayer must pay the interest and
may file a claim for reimbursement with the Town Council within 10
days of the date of the decision.
