2009 Rhode Island Code
Title 45 - Towns and cities
CHAPTER 45-33.2 - Tax Increment Financing
§ 45-33.2-21 - Tax limitations.

SECTION 45-33.2-21

   § 45-33.2-21  Tax limitations. – (a) Except as provided below, a tax increment shall be included in the calculation of the maximum tax a city or town may levy pursuant to the provisions of § 44-5-2 of the general laws.

   (b) To the extent that inclusion of a tax increment in a tax levy causes a municipality to exceed the maximum tax a city or town may levy pursuant to the provisions of § 44-5-2 of the general laws, such excess shall be excluded from such calculation for a period not to exceed twenty-five (25) years if:

   (1) Such excess tax increment is allocable to: (i) the payment of the principal of or interest on any special obligation bonds issued under the provisions of § 45-33.2-6, to fund a project as described in subdivisions 45-33.2-3(2)(i), (ii) or (iii); (ii) any requirement to fund any reserve or other account or satisfy any other financial requirement which must be satisfied in connection with the issuance of such bonds or any other indebtedness or obligation incurred in connection with any such project or portion of one; or (iii) any payments made to directly fund any project described in subdivisions 45-33.2-3(2)(i), (ii) or (iii); and

   (2) The project is determined by the division of property valuation in the department of revenue to be: (i) within or contiguous to the tax increment area; or (ii) substantially related to the improvements giving rise to the tax increment; or (iii) reasonably necessary to assure the private investment required to generate the tax increment.

   (c) The tax assessor in each city and town shall include calculations reflecting any tax increment excluded from the tax cap provisions of § 44-5-2 of the general laws when submitting the municipality's adopted tax levy and rate to the division of property valuation in accordance with § 44-5-2 of the general laws.

   (d) The division of property valuation in the department of revenue may issue such regulations as may be required to implement and enforce the provisions of this section.