§ 45-13-12 - Distressed communities relief fund.
SECTION 45-13-12
§ 45-13-12 Distressed communities relieffund. – (a) There is established a fund to provide state assistance to those RhodeIsland cities and towns which have the highest property tax burdens relative tothe wealth of taxpayers.
(b) Establishment of indices. Four (4) indices ofdistress shall be established to determine eligibility for the program. Eachcommunity shall be ranked by each distress index and any community which fallsinto the lowest twenty percent (20%) of at least three (3) of the four (4)indices shall be eligible to receive assistance. The four (4) indices areestablished as follows:
(1) Percent of tax levy to full value of property.This shall be computed by dividing the tax levy of each municipality by thefull value of property for each municipality. For the 1990-91 fiscal year, taxlevy and full value shall be as of the assessment date December 31, 1986.
(2) Per capita income. This shall be the most recentestimate reported by the U.S. Department of Commerce, Bureau of the Census.
(3) Percent of personal income to full value ofproperty. This shall be computed by multiplying the per capita income aboveby the most recent population estimate as reported by the U.S. Department ofCommerce, Bureau of the Census, and dividing the result by the full value ofproperty.
(4) Per capita full value of property. This shall bethe full value of property divided by the most recent estimate of population bythe U.S. Department of Commerce, Bureau of the Census.
(c) Distribution of funds. Funds shall be distributedto each eligible community on the basis of the community's tax levy relative tothe total tax levy of all eligible communities. For the fiscal year 1990-91,the reference year for the tax levy shall be the assessment date of December31, 1988. For each fiscal year thereafter, except for fiscal year 2007-2008,the reference year and the fiscal year shall bear the same relationship. Forthe fiscal year 2007-2008 the reference year shall be the same as for thedistributions made in fiscal year 2006-2007.
Any newly qualifying community shall be paid fifty percent(50%) of current law requirements the first year it qualifies. The remainingfifty percent (50%) shall be distributed to the other distressed communitiesproportionately. When any community falls out of the distressed communityprogram, it shall receive a one-time payment of fifty percent (50%) of theprior year requirement exclusive of any reduction for first year qualification.The community shall be considered a distressed community in the fall-out year.
(d) Appropriation of funds. The state of Rhode Islandshall appropriate funds in the annual appropriations act to support thisprogram.
(e) Payments. Payments shall be made to eligiblecommunities each March equal to one half of the appropriated amount and eachAugust equal to one half of the appropriated amount.