[Ord. No. 02-10, § 1, 4-24-2002; amended 4-19-2017 by Ord. No. 17-09]
The Town Council shall have the authority upon completion of
any comprehensive revaluation or update pursuant to G.L. 1956, § 44-5-11.6
to adopt and/or amend a tax classification by ordinance subject to:
(2)
The Town Council may adopt tax rates for the property class for all
ratable tangible personal property no greater than twice the rate
applicable to any other class, provided that the Town documents to,
and receives written approval from, the office of municipal affairs
that the rate difference is necessary to ensure that the estimated
tax levy on the property class for all ratable tangible personal property
is not reduced from the prior year as a result of the revaluation
or statistical revaluation.
[Amended 2-21-2018 by Ord. No. 18-01]
(3)
Any tax rate changes from one year to the next shall be applied such
that the same percentage rate change is applicable to all classes.
[Ord. No. 02-10, § 1, 4-24-2002]
There shall be four classes of property.
(1)
Class 1: Residential real estate consisting of no more than five
dwelling units, land classified as open space, and dwellings on leased
land including mobile homes. A homestead exemption provision is also
authorized within this class, provided however, that the actual effective
rate applicable to property qualifying for this exemption shall be
construed as the standard rate for this class against which the maximum
rate applicable to another class shall be determined.
(2)
Class 2: Commercial and industrial real estate, residential properties
containing partial commercial or business uses and residential real
estate of more than five dwelling units.
(3)
Class 3: All ratable tangible personal property.
(4)
Class 4: Motor vehicles and trailers subject to the excise tax created
by G.L. 1956, § 44-34-1 et seq.
[Ord. No. 04-26A, § 1, 10-20-2004; Ord. No. 08-14, § 1, 4-23-2008]
The Town Council finds that the ever increasing property taxes
caused by the continually decreasing amount of state aid to education
and other economic factors requires the Town Council to adopt an ordinance
regulating the maximum annual percentage increase in real estate property
taxes.
[Ord. No. 04-26A, § 1, 10-20-2004; Ord. No. 08-14, § 1, 4-23-2008; Ord. No. 08-15, § 1, 5-7-2008]
The Town of Cumberland Town Council hereby restricts the maximum
tax increase in any one year to a certain percentage set forth below.
The Town of Cumberland hereby restricts the annual tax increase to
an amount not to exceed the below percentages based upon the prior
fiscal year's tax rate. In the case when the certified total taxable
net assessed value is less than the certified total taxable net assessed
value of the prior year, the tax rate increase may be greater than
the rates listed below subject to the provisions of RIGL § 44-5-2.
|
Fiscal Year
|
Maximum Tax Increase
|
|---|---|
|
2006
|
5%
|
|
2007
|
4 1/2%
|
|
2008
|
4%
|
|
2009
|
3 1/2%
|
|
2010
|
3%
|
|
Thereafter the maximum increase shall be not greater than 3%.
|
|
For the purposes of this section a fiscal year is defined as
that year ending on June 30. For instance, fiscal year 2006 is for
the period July 1, 2005 to June 30, 2006. Further, the maximum increase
in any fiscal year shall be the percentage for that fiscal year applied
to the total taxes for the prior fiscal year. With regard to RIGL
45-5-2 (c)(3), if the Town forecasts or experiences debt service expenditure
increases which are of a greater rate than the allowed maximum tax
levy rate increase the portion of the increase in excess of the allowed
tax levy rate increase is exempt from the requirements of this section.
The cost of debt service expenditure associated with a percentage
increase exceeding the maximum allowable rate increase shall not be
included in the allowable tax levy increase required by this section.
|
[Ord. No. 04-29, §§ 1
— 4, 11-3-2004; Ord. No. 13-07, § 1, 4-8-2013; amended 4-15-2020 by Ord. No. 20-07]
(a)
The Town Council of the Town of Cumberland shall consider and adopt
on an annual basis two tax levy resolutions due to its unsynchronized
budget system. The first tax levy resolution shall be approved in
the month of April (the "April tax levy resolution"). The second tax
levy resolution shall be passed upon approval of the subsequent fiscal
year budget (the "budget tax levy resolution"). Attachment 1 to this
Code of Ordinances is entitled "Sample Tax Levy Resolutions."[1] These resolutions specify the total property tax levy
amount within an estimated range of upper and lower values.
[1]
Editor's Note: Said attachment is on file in the Town offices.
(b)
For purposes of effective reporting and full disclosure of anticipated
tax revenue, assessment and rate information for which the annual
tax levy resolutions are based upon, it is hereby required that the
proposed tax levy resolutions be submitted to the Town Council with
attached annual tax levy worksheets, as represented by Attachment
1, entitled "Attachment 1, Sample Tax Levy Worksheets."[2] This requirement must be adhered to in addition to the
requirements of all existing state and local tax-levy-related statutes
and ordinances.
[2]
Editor's Note: Said attachment is on file in the Town offices.
(c)
The April tax levy resolution and accompanying worksheet are required
to calculate the current fiscal year tax levy amount and the particular
tax rates necessary to generate this levy amount through April 30
of the following year. Such rates are required to be applied to the
annual property tax bills subsequent to the Town Council approval
of the tax levy resolution and the attached annual tax levy worksheet.
The budget tax levy resolution and accompanying worksheet are required
to calculate the subsequent fiscal year tax levy amount and the particular
tax rates necessary to generate this levy amount from May 1 of the
following year. The April tax levy resolution worksheet is required
by this section to include and represent the accurate calculation
of the annual tax rates based upon the most recent tax assessment
values as of December 31 of the preceding year as provided and certified
by the Town Tax Assessor. The budget tax levy resolution worksheet
is required to include and represent the accurate calculation of the
annual tax rates based upon projected tax assessment values for the
following December 31 provided by the Town Tax Assessor. The estimated
first tax quarter collection rate, the annual estimated collection
rate, the estimated abatement data, the estimated current fiscal year
total expenditure and revenue amounts and the estimated discount participation
values are values which are also hereby required to be used within
the calculations listed on the required annual tax levy worksheets.
(d)
The proposed annual tax levy worksheets are required to include the
application of an estimated first tax quarter collection rate. The
worksheet estimating the first tax quarter collection rate is required
to be either equal to or not greater than one percentage point more
than the actual first tax quarter collection rate of the preceding
annual tax period or equal to or not greater than one percentage point
more than the average collection rate of the last five preceding first
tax quarter collection rates. The Finance Director is required to
list on the worksheet the actual first tax quarter collection rate
sustained for each of the preceding five annual tax periods. The first
tax quarter collection rate, annual estimated collection rate, the
estimated abatement data, the estimated current fiscal year total
expenditure and revenue amount and the estimated discount participation
rate are normal values which are also hereby required to be used within
the calculations listed on the required annual tax levy worksheets.
