Stabilization: New Manufacturing & Commercial Purposes

Sec. 25-42. Exemption or stabilization on qualifying manufacturing or commercial

(a)   Authority.  The town council may vote to authorize, for a period not be exceed ten years, to exempt from payment, in whole or in part, real and personal property used for manufacturing, or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of such property, notwithstanding the valuation or the rate of tax.  

(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)   Personal property used for commercial purposes  means any personal property owned by a firm or concern occupying a building, structure and/or land used for commercial purposes and used by such firm or concern in its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade and inventory.  

(2)   Real property used for commercial purposes  includes any building or structure used for offices or commercial enterprises including without limitation any building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used for service industries, or used for any other commercial business and the land on which any such building or structure is situated and not used for residential purposes.  

(c)   Application.  An applicant seeking tax stabilization or a tax exemption in whole or in part shall file a petition with the town council. The petition shall contain the following information setting forth how the granting of the exemption or stabilization will inure to the benefit of the town by reason of:  

(1)   The willingness of the manufacturing or commercial firm or concern to locate in town;

(2)   The willingness of a manufacturing or commercial firm or concern to expand facilities with an increase in employment; or

(3)   A manufacturer or commercial firm or concern to replace, reconstruct, expand or remodel existing buildings, facilities, fixtures, machinery or equipment with modern machinery or equipment resulting in an increase in plant or commercial building investment by the firm or concern in town.


(d)   Exemption or stabilization.  Property, the payment of taxes on which has been exempted or which is subject to the payment of a stabilized amount of taxes, shall not during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the town so long as the property is used for the manufacturing or commercial purposes for which the exemption or stabilized amount of taxes was made.  

(e)   Payment of portion of taxes.  Notwithstanding any vote by the town council all property exempted or granted a tax stabilization shall nevertheless be assessed for and shall pay the portion of the tax, if any, for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision thereof to the extent assessed upon or apportioned to the town and the taxes so assessed and collected shall be kept in a separate account and used only for the purpose assessed. 

(f)   Public hearing.  

(1)   Prior to granting an exemption or a stabilized amount of taxes, the town council shall hold a public hearing.

(2)   At least ten days' notice shall be given of the public hearing in a newspaper having a general circulation in the town.


(g)   Findings by the town council.    

(1)   Prior to granting an exemption or a stabilization of taxes, the town council shall determine that:

a.   Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of: (i) the willingness of the manufacturing or commercial firm concern to locate in the town; or (ii) the willingness of a manufacturing or commercial firm or concern to expand facilities with an increase in employment; or

b.   Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial firm or concern to replace, reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery or equipment resulting in an increase in plant or commercial building investment by the firm or concern in the town.


(2)   The affirmative vote of five or more members of the council is required to grant an exemption or stabilization of taxes. (Ord. of 9-28-1994)

For more Ordinance of the Town of Burrillville, click here.