§ 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 thecalculation of the maximum tax a city or town may levy pursuant to theprovisions of § 44-5-2 of the general laws.
(b) To the extent that inclusion of a tax increment in a taxlevy causes a municipality to exceed the maximum tax a city or town may levypursuant to the provisions of § 44-5-2 of the general laws, such excessshall 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) thepayment of the principal of or interest on any special obligation bonds issuedunder the provisions of § 45-33.2-6, to fund a project as described insubdivisions 45-33.2-3(2)(i), (ii) or (iii); (ii) any requirement to fund anyreserve or other account or satisfy any other financial requirement which mustbe satisfied in connection with the issuance of such bonds or any otherindebtedness or obligation incurred in connection with any such project orportion of one; or (iii) any payments made to directly fund any projectdescribed in subdivisions 45-33.2-3(2)(i), (ii) or (iii); and
(2) The project is determined by the division of propertyvaluation in the department of revenue to be: (i) within or contiguous to thetax increment area; or (ii) substantially related to the improvements givingrise to the tax increment; or (iii) reasonably necessary to assure the privateinvestment required to generate the tax increment.
(c) The tax assessor in each city and town shall includecalculations reflecting any tax increment excluded from the tax cap provisionsof § 44-5-2 of the general laws when submitting the municipality's adoptedtax 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 ofrevenue may issue such regulations as may be required to implement and enforcethe provisions of this section.