Notice of Public Hearing

CITY OF CRANSTON

FINANCE COMMITTEE

NOTICE OF PUBLIC HEARING

A Public Hearing on the following proposed Ordinance will be held

before the Finance Committee on Monday, August 7, 2017 at 7:30 p.m. Council Chambers, 869 Park Avenue, Cranston, RI. pursuant to Section 3.12 of the Charter.

Complete copies of proposed Ordinances are available for public review at the City Clerk’s Office and the Cranston Central Library and can be viewed on the City’s website cranstonri.com under calendar by clicking on the meeting date.

“Individuals requesting interpreter services for the deaf or hard of hearing must notify the City Clerk’s Office at 461-1000 ext. 3197 seventy-two (72) hours in advance of the hearing date.”

Council Vice-President Michael W. Favicchio, Chair

Finance Committee

Maria Medeiros Wall, JD

City Clerk

PROPOSED ORDINANCE

NO. 7-17-03 IN AMENDMENT OF TITLE 3.16 OF THE CODE OF THE CITY OF CRANSTON, 2005, ENTITLED, “PROPERTY TAX

CLASSIFICATION”

(Motor Vehicle Tax Incentive

Program)

It is ordained by the City Council of the City of Cranston as follows:

SECTION 1. Title 3.16 of the Code of the City of Cranston, 2005, entitled, “Property Tax Classification” is hereby amending by adding the following new section:

It is the intention of the Administration and the City Council to offer rental/lease automobile exemptions as an incentive to attract new and expanded revenue from businesses.

3.16.060 “Motor Vehicle Tax Incentive Program”

Any taxpayer engaged in the business of renting or leasing motor vehicles with a minimum of sixty (60) vehicles in accordance with section 5.80.030 of this Code shall be entitled to apply to the City Tax Assessor for a motor vehicle tax incentive. Each application shall identify the name and address of the taxpayer, each vehicle for which a tax abatement is requested, and any other information reasonably requested by the Tax Assessor and shall be submitted no later than a date announced by the Tax Collector. Upon a determination of qualification by the Tax Assessor, such taxpayer shall be entitled to a motor vehicle tax incentive as hereinafter set forth.

1. Abatement of Motor Vehicle Taxes. Each qualifying taxpayer shall receive a motor vehicle tax abatement in an amount to be determined pursuant to this section. Said abatement shall be in the form of a reduction in the total of all motor vehicle taxes to be paid by the same taxpayer in the tax year following the year in which said abatement accrued (e.g. an abatement accruing against the motor vehicle tax payable for a vehicle assessed as of December 31, 2017, which tax is due beginning in the month of July, 2018, shall be applied as a reduction to the motor vehicle taxes to be paid by said taxpayer during the twelve month period commencing on July 1, 2019).

2. Amount of Motor Vehicle Tax Abatement. A motor vehicle tax abatement shall be calculated as follows:

a. For the first sixty (60) vehicles, all taxes in excess of $450 per year, per vehicle shall be abated.

b. For more than sixty (60) vehicles, but less than one hundred vehicles (100) all taxes in excess of $400 per year, per vehicle shall be abated.

c. For more than one hundred (100) vehicles, but less than one hundred fifty (150) vehicles, all taxes in excess of $350 per year, per vehicle, shall be abated.

d. For more than one hundred fifty (150) vehicles, all taxes in excess of $300 per year, per vehicle, shall be abated.

3. No vehicle with an assessed value greater than $40,000 shall qualify for an abatement pursuant to this section.

SECTION 2. This Ordinance shall take effect upon its final adoption.

Fiscal Note

Currently there aren’t any Car Rental Establishments eligible for the following Abatements.

a) First 60 vehicles taxed in excess of $450/yr. per vehicle. Average yearly tax $600

60 x $600 = $36,000 minus 60 x $150 for abatement of $9,000

b) Greater than 60 vehicles but less than 100 vehicles @ $200 for abatement = $ 7,800

99 x $ 600 = $59,400 minus abatement of $16,800

c) Greater than 100 vehicles but less than 150 vehicles @ $250 for abatement of $12,250

149 x $ 600 = $89,400 minus abatement of $29,050

d) Greater than 150 vehicles, 50 vehicles @ $300 per vehicle for abatement of $ 15,000

199 x $ 600 = $ 119,400 minus abatement of $44,050

Robert Strom, Director of Finance

Sponsored by

Council President Farina,

Council Vice President Favicchio and Councilman Lanni

Referred to Finance Committee August 7, 2017

7/27/17