Rhode Island § 44-5-87 - Levy and Assessment of Local Taxes

§ 44-5-87. Property tax credit in exchange for volunteer services performed by persons over age sixty (60).

(a)(1) Each city and town, by resolution or ordinance adopted by the city or town council, may establish a program to allow persons over the age of sixty (60) years to volunteer to provide services to the city or town. In exchange for the volunteer services, the city or town shall reduce the real property tax obligations of the person over the age of sixty (60) years on their tax bills and any reduction so provided shall be in addition to any exemption or abatement to which any such person is otherwise entitled and no such person shall receive a rate of, or be credited with, more than the current state minimum wage per hour for services provided pursuant to the reduction nor shall the reduction of the real property tax bill exceed one thousand five hundred dollars ($1,500) in a given tax year. It shall be the responsibility of the city or town to maintain a record for each taxpayer including, but not limited to, the number of hours of service and the total amount by which the real property tax has been reduced and to provide a copy of the record to the assessor in order that the actual tax bill reflect the credit granted. A copy of the record shall also be provided to the taxpayer prior to the issuance of the actual tax bill. The cities and towns shall have the power to create local rules and procedures for implementing this section in any way consistent with the intent of this section.

(2) In no instance shall the amount by which a person’s property tax liability is reduced in exchange for the provision of services be considered income, wages, or employment for purposes of taxation; for the purposes of withholding taxes; for the purposes of workers’ compensation; or any other applicable provisions of the general laws, but the person while providing the services shall be considered a public employee; provided, however, that the services shall be deemed employment for the purposes of unemployment insurance.

(b) A city or town, by vote of its city or town council, may adjust the credit in subsection (a) of this section by:

(1) Allowing an approved representative, for persons physically unable, to provide the services to the city or town; or

(2) Allowing the maximum reduction of the real property tax bill to be based on one hundred twenty-five (125) volunteer service hours in a given tax year, rather than one thousand five hundred dollars ($1,500).