Exemption of Inventory
Sec. 25-41. Exemption of inventory.
(a) Authority. Pursuant to authority granted to the town by G.L. 1956, §§ 44-3-29, 44-3-37 and 44-3-40, the town hereby exempts the stock-in-trade or inventory of wholesalers or retailers located within the town, subject to the terms and conditions in this section.
(b) Definitions. The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, unless the context clearly indicates a different meaning:
(1) Inventory and stock-in-trade mean and include the merchandise kept on hand for sale in the normal and regular course of retail or wholesale business.
(2) Retailer means and includes a person, partnership, corporation, or other business entity engaged in the business of selling goods at retail.
(3) Wholesaler means and includes a person, partnership, corporation, or other business entity engaged in the business of selling goods for subsequent resale by its customers.
c) Application. An applicant seeking a tax exemption on inventory shall file an application with the tax assessor of the town. The application shall be on a form furnished by the tax assessor. The form shall contain as a minimum the following information:
(1) The name and address of the applicant;
(2) The location where the inventory is located within the town, including the lot and plat;
(3) The value of the inventory as of December 31 in the year immediately preceding the year in which the exemption is requested;
(4) The nature of the inventory for which the exemption is being requested; and
(5) The application shall be signed by the applicant.
(d) Grant of exemption. Upon receipt of a signed application, in accordance with subsection (c) of this section, accompanied by a copy of a paid tax bill, or a certification from the tax collector that all taxes due on the real estate where the inventory is located are current, the tax assessor shall notify the applicant that the exemption has been granted.
(e) Duration. Initial grants of exemption from taxation shall be for a period of ten years. An applicant may apply for subsequent grants of exemption from taxation in accordance with the procedure set forth in the initial application.
(f) Annual report by taxpayer. Taxpayers receiving an exemption shall annually, prior to March 15, file a report with the tax assessor listing the value of all inventory located within the town as of the previous December 31. Contemporaneously with filing the annual report, the taxpayer shall file either a copy of a paid tax bill for the real estate where the inventory is located or a certificate from the tax collector that all taxes are current. Failure to file a timely report, or proof that real estate taxes are current, may result inrevocation of the exemption.
(g) Revocation of exemption. Upon notification to the town council by the tax assessor that a taxpayer previously granted an exemption has failed to comply with the terms of this section, the town council may, upon notice to the taxpayer, hold a show cause hearing and terminate the exemption.
(h) Annual report by the tax assessor. The tax assessor shall annually, in the month of August, report to the town council the amount of property exempted pursuant to the terms of this section.
(Ord. of 5-28-1997, § 14-3)
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