[Adopted 11-12-1991 by Ord. No. 9-91-0181 as Ch. 16, Art. II, Div. 2, of the 1991 Code; amended in its entirety 1-8-2007 by Ord. No. 1-07-253]
The Town Council may exempt from taxation, and/or freeze the rate and valuation, on certain property situated in the Town which is owned and occupied by any eligible person totally disabled or over the age of 65 years. Such eligibility shall be ascertained by the Tax Assessor in accordance with § 217-5 and the amount of exemption shall be calculated by the Tax Assessor in accordance with the provisions of § 217-8.
[Amended 12-10-2007 by Ord. No. 12-07-264; 11-28-2011 by Ord. No. 01-11-282]
Eligibility of persons or property for an exemption under this
article shall be governed by the following:
A.
Persons eligible for exemption. Persons who meet the following qualifications
are eligible for tax exemption:
(1)
The applicant must be totally disabled during the entire last completed
calendar year, or be 65 years of age or older at the property valuation
date.
(2)
The applicant must be the owner-occupant of the real property for
which the exemption is intended. For the purpose of this article,
a home or trailer on leased land shall be deemed to be real property.
(3)
The applicant must be the owner-occupant of the real property within
the Town for a period of five years next prior to the filing of an
application for an elderly tax exemption. If the applicant has been
totally disabled during the entire last completed calendar year, then
such applicant must prove residency in Coventry for the five years
prior to the total disability application date. Residency, for the
purpose of this article, shall mean that the person has been legally
domiciled within the Town of Coventry for at least five years and
must reside within the Town for at least nine months each year. Seasonal
or temporary residence shall not constitute residing within the Town.
B.
Use of property for business purposes. No business property or combination of business and residential property owned and occupied by any applicant shall be entitled to the exemption in this article. It is the express purpose of this article to confine the exemption to residential property exclusively used as such by the owners thereof. Such residential property shall be limited to a maximum of three family units (i.e., no rental units). The units need not be located within a single building, but must be located on not more than two acres of land as described in Subsection D of this section. One of the units must be owner-occupied. Professional persons who operate and conduct their professions in whole or in part from their residence shall not be entitled to the exemption provided for in this article. The practice of a profession from any residence shall be deemed, for the purpose of this article, to cause such residence to be considered a business property.
C.
Titles held by more than one person. If title to the property is held by two or more persons, the terms "owner-occupant" and "applicant" shall refer to all such persons. Each such person must meet the eligibility requirements provided in Subsection A of this section, except in the following cases:
(1)
In the case of property held jointly by a husband and wife, the property,
if otherwise entitled to be exempted, shall not be disallowed upon
the grounds that one of the spouses is not 65 years or older or that
one of the spouses is not totally disabled.
(2)
An exemption under this article shall not be disallowed if the owner-occupant
has only a life estate, if the property is in the name of a parent
and one or more of the children owning such property submits an affidavit
that title is held in that manner for estate planning purposes.
D.
Property to be included under exemption; alteration or improvement
of property.
(1)
The property to be exempted may include the dwelling wherein residency
and ownership is claimed, together with the garage and other outbuildings,
located on not more than two acres of land, all of which must be contiguous.
If the property contains more than two acres of contiguous land, the
remainder of the land shall be nonexempt and taxed accordingly.
(3)
Improvements may be made on property so exempted. The change in the
percentage of initially computed taxes for the year during which improvements
were made shall not be affected. The property value entry in the formula
shall be changed at the next following tax billing period.
E.
Termination. All exemptions shall terminate upon conveyance of the
subject property, death of the person exempted, the moving of such
person from the Town or the failure to file an annual declaration
of eligibility affidavit.[1]
[1]
Former Subsection F, regarding the expiration of the ordinance,
which immediately followed this subsection, was repealed 2-11-2013
by Ord. No. 02-13-286.
Applicants for the tax exemption program authorized
by this article shall submit the following as required by this section:
A.
Proof of age. Proof of age may be established by a
birth certificate, baptismal certificate, certificate of citizenship,
or by any other means normally accepted by the Social Security Administration.
B.
Proof of ownership. Proof of ownership of the property
for which the exemption is claimed may be established by confirmation
of the Tax Assessor that the property tax on the property has been
levied on the applicant continuously for the required period of time.
C.
Proof of residency. Residency, for the purpose of
this article, shall mean that the person has resided at the property
for at least nine months per annum. Seasonal or temporary residence
shall not be sufficient.
D.
Proof of income.
[Amended 12-10-2007 by Ord. No. 12-07-264]
(1)
Only applicants for the income-based tax exemption
program need submit proof of household income in accordance with this
section. An affidavit, signed by the applicant and witnessed by two
persons and sworn to before a notary public, shall be required and
shall state the owner-occupant's income. The affidavit shall go on
to list all other income earned by all other members of the household
except as hereinafter provided and shall further state that no other
income is brought into the household other than what is listed. All
income shall be gross income of the household unless the applicant
or the spouse is totally disabled. In such an event, the applicant
shall deduct from gross income all medical expenses, including but
not limited to hospital, doctor, and medication expenses and the cost
of health insurance coverage incurred by the applicant and/or the
spouse.
(2)
The income of a caregiver living with the applicant
for the care of the applicant and/or the spouse shall not be counted
as income of the household. Proof of caregiver status shall be required
by the Tax Assessor prior to consideration. Proof of caregiver status
shall be a medical opinion from a Rhode Island licensed medical doctor
who has been treating the applicant or spouse. The medical opinion
shall state the need for a live-in caregiver and the medical reason
for such a need.
(3)
In all other matters, any supporting documentation
as may be required by the Tax Assessor shall be submitted to the Tax
Assessor prior to consideration.
E.
Proof of disability. Only applicants for the total
disability tax exemption program need submit proof of disability.
An affidavit signed by a licensed physician stating the applicant's
disability, length of total disability, and probable duration of total
disability shall be submitted to the Tax Assessor along with the application.
An applicant must be totally disabled during the entire last completed
calendar year to be eligible for benefits under this section (January
through December). Total disability determinations shall mirror the
Social Security Administration definition insofar as the owner-occupant
must be both unable to work and unable to earn money.
An annual declaration of eligibility affidavit
will be required to be filed with the Tax Assessor by January 31 of
the tax year the exemption is being applied for. The Tax Assessor
shall, upon review of the affidavit, determine what supporting documentation,
if any, must be provided for the renewal application to be processed.
The Tax Assessor shall conduct detail audits, on a random basis, of
the approved affidavits; the number of such audits shall be determined
by the Tax Assessor after conferring with the Town Manager and/or
the Finance Director.
[Amended 7-12-1989 by Ord. No. 3-89-0160; 7-17-1989 by Ord. No. 4-89-0161; 7-24-2000 by Ord. No.
4-00-0219; 1-28-2002 by Ord. No. 1-02-0228]
In implementing this article, the following
procedure shall be followed:
A.
Reduction of valuation of property. Regardless of
the income of those persons eligible for the exemption, the valuation
of the property for which exemption is appropriate shall be reduced
by $8,000. Only one such exemption may be applied to a particular
property. The exemption of $8,000 is in addition to any other tax
relief which may be applicable under this article.
B.
Computation of tax; approval. For the purpose of this subsection, "gross income" shall be deemed to be all income brought into the household, including, but not limited to the spouse's income and social security payments, except for totally disabled applicants and their spouse whose income shall be determined as provided in § 217-6D:
[Amended 6-4-2007 by Ord. No. 04-07-256; 12-10-2007 by Ord. No. 12-07-264;]
(1)
Gross income. For the purpose of this subsection,
"gross income" shall be deemed to be all income brought into the household,
including but not limited to the spouse's income and social security
payments.
(a)
If the applicant's gross income does not exceed
$9,713, the maximum tax on the property shall be equal to 4% of that
gross income, or the regular amount of tax, whichever is the lowest.
(b)
If the applicant's gross income does not exceed
$10,927, the maximum tax on the property shall be equal to 8% of the
gross income above $9,713 plus $389, or the regular amount of tax,
whichever is lowest.
(c)
If the applicant's gross income does not exceed
$15,177, the maximum tax on the property shall be equal to 12% of
the gross income above $10,927 plus $486, or the regular amount of
tax, whichever is the lowest.
(2)
Annual income.
(a)
Taxpayers having an annual income greater than
$15,177 and less than $21,248 shall receive an exemption of 60% of
the assessed value.
(b)
Taxpayers having an annual income greater than
$21,248 and less than $27,318 shall receive an exemption of 50% of
the assessed value.
(c)
Taxpayers having an annual income greater than
$27,318 and less than $33,389 shall receive an exemption of 40% of
the assessed value.
(d)
Taxpayers having an annual income greater than
$33,389 and less than $39,460 shall receive an exemption of 30% of
the assessed value.
(e)
Taxpayers having an annual income greater than
$39,460 and less than $45,531 shall receive an exemption of 20% of
the assessed value.
(3)
The tax rate and valuation on property owned and occupied by an eligible applicant shall be fixed at both the tax rate and the property valuation, subject to Subsection B(1) and (2) above, applicable to such property for the December 31 assessment date immediately following the date on which such person meets the eligibility requirements of this section.
(4)
Eligibility income parameters contained in Subsection B(1), (2) and (3) above shall be adjusted annually commencing in fiscal year 2008. These adjustments shall be based upon cost-of-living allowances as determined by the United States Department of Social Security Administration. Income will be verified by the Tax Assessor.
C.
Computation of tax; report to Council. The Tax Assessor
shall compute each percentage of normal tax to be paid and shall have
prepared and submitted to the Town Council for approval a list of
all properties so exempted, to include the location of the property,
the name of the applicant, the initial assessed property value, the
reduced property value, the dollar amount of the tax which initially
would be paid, the dollar amount of the tax to be paid and the amount
saved on each property by the applicant.
D.
Exemptions to be on fiscal year basis. All exemptions
will be on a fiscal year basis in accordance with the current financial
management procedures of the Town.
E.
Due date for filing of application. The initial application
shall be filed not later than January 31 of each year for the tax
bill to be rendered thereafter.
F.
Due date for filing of Tax Assessor's report. The Tax Assessor's statement to the Town Council pursuant to Subsection C of this section shall be prepared and submitted to the Town Manager on or before March 1 of each year.
G.
Verification of report by Town Manager. The Town Manager
shall cause the document to be checked for accuracy and shall submit
it to the Town Council at its next regular meeting.
H.
Approval by Town Council. The Town Council may disapprove
individual cases in the document which appear to be in error, without
causing the entire exemption document to be disapproved. If the Town
Council does not complete action on the document within 15 days of
receipt from the Town Manager, the document shall be deemed approved.
I.
This article shall apply to assessments of taxes made
on and after December 31, 1999, and applications may first be made
during the month of January 2000.
Any person who has applied for relief under
the provisions of this article and who has been denied relief or not
granted the relief requested of the Assessor may appeal the decision
of the Assessor to the Town Manager. The Town Manager shall render
a decision upon the matter within 10 working days. Any person who
has been denied relief by the Town Manager may further appeal to the
Town Council, which, upon granting a private or public hearing upon
the matter at the option of the requesting person, shall render a
final decision. Such decision shall be voted upon in open session
and shall become a permanent record of the Town.
In addition to any other action that the Town
may deem proper, if any application is found to have contained false
information or if it is found that any exemption has been granted
where not appropriate due to any action of an applicant, the Tax Assessor
shall return the property so affected to its initial tax status. The
amount of tax money the applicant has saved through the benefits provided
in this article shall be billed to the applicant, together with interest
calculated at an annual rate of 12%. The imposition of this penalty
shall not bar the applicant from receiving the benefits in the future
upon proper application.
[Added 9-27-1993 by Ord. No. 6-93-0191]
A.
In addition to the exemptions provided elsewhere in this chapter,
the Tax Assessor of the Town of Coventry shall exempt from taxation
up to 50% of the value of any motor vehicle that has been specifically
adapted with a wheelchair liftfor use by an individual and that is
owned and registered by said individual, or his or her immediate family
member, who has sustained a loss or permanent loss of use of both
legs or both arms. For purposes of this exemption, "immediate family
member" shall mean spouse, father, mother, brother, sister, father-in-law,
mother-in-law, or a person who lives in the same household as the
individual.
[Amended 8-27-2018 by Ord. No.
06-18-324]
B.
This exemption shall apply to not more than one motor
vehicle owned and registered for the personal, noncommercial use of
such person.
C.
After the Assessors have allowed an exemption under
this section, no further evidence of the existence of the facts required
by this section shall be required in any subsequent year in the city
or town in which the exemption has been so allowed.
