Home Forums Legislation 45-12-2 – Should MV Values still be included for this?

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  • Jen Mooney
    Participant
    Post count: 4

    It says below to include full value of motor vehicles but since we did not send out MV tax bills this year, does this still apply? On my certification sheet there are gross values for MV but $0.00 for net levy as I zeroed out the tax rate for MV’s.

    Thanks! Jen

    § 45-12-2. Maximum aggregate indebtedness.

    Except as provided in § 45-12-11, no city or town shall, without special statutory authority, or ministerial approval as provided for in § 45-12-2.1 incur any debt for money borrowed which would increase its aggregate outstanding principal indebtedness not excepted by law from the provisions of this section to an amount greater than three percent (3%) of the full assessed value of the taxable property within the city or town, but the amount of any borrowing in anticipation of taxes which is authorized or validated by § 45-12-4, and the amount of any fund held on account to pay such outstanding indebtedness shall be deducted in computing that indebtedness. In computing the value of taxable property for purposes of this section motor vehicles and trailers shall be valued at full value and without regard to the assessed value reductions provided for in § 44-34.1-1. Any city or town may, without special statutory authority, incur debt to an aggregate amount, as with the other outstanding indebtedness of the city or town not deductible under the foregoing provisions, which shall not exceed the limitation contained in this section.

    Dave Thompson
    Participant
    Post count: 8

    Hi Jen,

    That looks right to me. I included all of the motor vehicle values, but the net levy was zero.

    Chris Celeste
    Keymaster
    Post count: 32

    IANAL, so you really need to have bond council review and follow their direction.

    My opinion FWIW: It does indicate that MV values need to be included. Also, it notes this is regardless of 44-34.1-1 (MV phase out law). I expect the intent of that language is since towns are still getting reimbursed for MV tax levy, you need to include the valuations. However, this presents a challenge for upcoming years where we will not be processing MV assessments. I expect you may need to use the FY2018 baseline assessment (as this is the basis of the reimbursement amount received from the State) for future years. Again, please do what bond council says.

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