[Adopted 3-15-2022 by Ord. No. 2022-04; amended in its entirety 10-3-2023 by Ord. No. 2023-7]
This article is adopted pursuant to the authority in R.I. Gen.
Laws § 44-3-9.11 for the purpose of establishing requirements
and procedures by which the Town Council may enter into agreements
with property owners to exempt or stabilize taxes on real or personal
property used for manufacturing or commercial purposes, in order to
encourage economic development, expansion, redevelopment and/or rehabilitation
of existing manufacturing, industrial and commercial buildings as
well as the new development of manufacturing, industrial and commercial
buildings or structures on appropriately zoned land.
As used in this article, the following words or phrases shall
have the following meaning:
Any structure or facility, or other real or personal property,
used primarily for offices or commercial enterprises.
Any structure or facility, or other real or personal property,
used in the process of working raw materials into wares suitable for
use or that gives new shapes, new quality or new combinations to matter
that already has gone through some artificial process by the use of
machinery, tools, appliances, and other similar equipment, and any
structure or facility used for distribution, warehousing, or storage
of goods.
Upon application, and after advertisement and public hearing,
the Town Council may enter into an agreement with the owner of commercial
or manufacturing property located in the Town, or proposed to be located
in the Town, to exempt from payment of municipal property tax, in
whole or part, or to determine a stabilized amount of taxes on, commercial
or manufacturing property for a period not to exceed 10 years, subject
to the requirements of this article.
The application procedure shall proceed as follows:
A.
Owners of commercial or manufacturing property eligible to apply
for tax exemption or stabilization under this article shall file an
application for tax relief with the Town Clerk, on a form provided
for that purpose and which shall include:
B.
The application shall be submitted to the Town Council at its next
regularly scheduled meeting. The Town Council shall then refer said
application to the Budget and Financial Review Board for an advisory
recommendation. Prior to submission to the Budget and Financial Review
Board, the Assessor shall physically inspect the property that would
be subject to the tax stabilization agreement. The Assessor may require
that the applicant pay for an independent third-party appraisal for
all property that is subject to any proposed tax stabilization agreement.
The Budget and Financial Review Board shall review and provide a written
recommendation to the Town Council within 30 days of receipt of the
application from the Town Council. Upon receipt of the recommendation
of the Budget and Financial Review Board, the Town Council shall vote
to advertise the application 14 days before the date of the scheduled
public hearing. The advertisement shall state that the application
has been received, the name and address of the applicant, the date,
time and location of the public hearing, and that a copy of the application
may be reviewed at the Town Clerk's office during regular business
hours.
The Town Council may enter into an agreement to exempt property
from taxation in whole or part, or to stabilize taxes on property,
only if it finds that:
A.
Granting of the exemption or stabilization will inure to the benefit
of the Town by reason of:
B.
Granting of the exemption or stabilization of taxes will inure to
the benefit of the Town by reason of the willingness of a manufacturing
or commercial firm or concern to replace, reconstruct, expand, or
remodel existing buildings, facilities, fixtures, machinery, or equipment
with modern buildings, facilities, fixtures, machinery, or equipment,
resulting in an increase in plant or commercial building investment
by the firm or concern in the Town of not less than $2,000,000 in
real property and/or tangible improvements, excluding the purchase
price of any real property.
Except as provided in § 321-23, property for which taxes have been exempted in whole or part or stabilized pursuant to this article shall not, during the period for which taxes have been exempted or stabilized, be further liable to taxation by the Town so long as the property is used for the manufacturing or commercial purpose for which the exemption or stabilization was granted. Additionally:
A.
Any applicant for tax agreement pursuant to this article must be
current on all tax, user fees and any other payments owed to the Town
and otherwise be in good standing to operate as a business in the
State of Rhode Island at the time the application for a tax agreement
is filed with the Town Clerk.
B.
Any agreement made under the provisions of this article shall be
considered null and void, and of no further force and effect, and
shall cause any and all taxes exempted under the agreement to become
immediately due and payable, due to:
(1)
A change in use, such that the property is no longer used solely
for the manufacturing or commercial purpose for which the exemption
or stabilization was granted;
(2)
Nonpayment or late payment of taxes due under this article if such
nonpayment or late payment is not cured within 60 days of any such
delinquency; provided however, that the taxpayer may petition the
Town Council to maintain the tax agreement one time during the term
of the agreement as a result of any nonpayment or late payment. In
addition, all authority granted to the Town in the General Laws to
sell property at tax sale shall remain in full force and effect during
the period of any tax agreement;
(3)
Nonpayment or late payment of any municipal fees if such nonpayment
or late payment is not cured within 60 days of any such delinquency;
provided, however, that the taxpayer may petition the Town Council
to maintain the tax agreement one time during the term of the agreement
as a result of any nonpayment or late payment; or
(4)
Violations of any local building code and/or zoning ordinance during
or after construction and/or relocation that is not cured within 60
days of notice of violation; provided, however, that the taxpayer
may petition the Town Council to maintain the tax agreement one time
during the term of the agreement as a result of any local violations.
C.
The benefits of a tax agreement obtained pursuant to this article,
upon Town Council approval, shall be transferable to property owners
and tenants, as long as the property is used solely for the manufacturing
or commercial purpose for which the agreement was granted; however,
the duration of the agreement period shall not be extended.
D.
A business receiving tax relief under this section that replaces
or adds employees working at the property which is subject to an agreement,
agrees that among applicants it deems, in its sole discretion, to
be equally qualified, it will give hiring preference to residents
of the Town of Smithfield.
Notwithstanding any vote of, or findings by, the Town Council,
the property shall be assessed for and shall pay that portion of the
tax, if any, assessed by the Town for the purpose of paying the indebtedness
of the Town and the indebtedness of the state or any political subdivision
to the extent assessed upon or apportioned to the Town, and the interest
thereon, and for appropriation to any sinking fund of the Town, which
portion of the tax shall be paid in full, and the taxes so assessed
and collected shall be kept in a separate account and used only for
that purpose.
Construction for new businesses shall be complete and the business
shall be fully operational as of December 31 in order to qualify for
relief on the subsequent tax bill. All applications under the provisions
of this article for new and existing businesses are due to the Assessor
no later than January 31 in order to be considered by the Town Council
for the ensuing fiscal year.
The Tax Assessor shall on annual basis perform a review of all
existing tax stabilization agreements to ensure compliance with the
terms and conditions of the agreement as well as the provisions of
this article and file an annual report with the Town Council regarding
the same.
If any one section of this article is found to be unenforceable,
then the other provisions herein shall continue to have the same force
and effect as if the unenforceable provision were not passed as part
of this article.
