Guthrie Bill Would Set Taxing Authority for Fire Districts
The bill would set taxing authority, powers and duties for fire districts statewide.
The financial troubles of the Central Coventry Fire District are about to be compounded this year when tax bills go out. Unlike previous years, when the district sent out tax bills on a two-tiered system – one for residences, one for businesses – the receiver appointed to oversee the district’s operation has determined that the fire district does not have authority to designate tax classes.
As a result, bills from the fire district this year will all be at one rate – the residential rate – which may please businesses owners whose bills will be lower, but will add stress to the district’s financial problems.
“The receiver is correct that state law does not permit fire districts to set and administer tax classification plans,” said Rep. Scott J. Guthrie (D-Dist. 28, Coventry). “Unfortunately, being correct in this case is going to cause a world of problems, and not just in Coventry but in fire districts across the state.”
Without the ability to administer a tiered-tax system for homeowners and businesses, Representative Guthrie said districts face the prospect of bringing in less tax money unless they set one, higher rate, which is not going to please homeowners.
Legislation introduced by Representative Guthrie will create law clearly establishing powers and duties of fire districts in Rhode Island, including taxing ability and administering a tax classification plan. The bill also calls for an annual independent audit, calls for a majority vote of electors of a district for any supplemental tax increase, and puts restrictions on the disparity between the various tax classifications.
“Fire districts across the state have employed a tax classification plan, even though state law does not give them the authority to do so. They were not doing it knowing it was not legal, but rather because they assumed that if their municipality could tax this way, so could the fire districts,” said Representative Guthrie. “The bill I’ve introduced provides districts with the power to formally adopt tax classification rates and should prevent fire districts around the state from facing the kind of havoc that is now going on in Central Coventry.”
The legislation, 2013-H 5176, would allow districts to adopt a tax classification plan, by a majority vote of the electors of the district. The designated classes would be limited to four classes – residential of no more than five dwelling units, open space and dwellings (including mobile homes) on leased land; commercial and industrial, residential properties containing partial commercial or business use, and dwellings of more than five unites; all ratable tangible personal property, and motor vehicles and trailers.
Under the bill, the effective tax rate applicable to any class (excluding vehicles) would not be allow to exceed by 50 percent the rate of any other class. (For instance, if the residential rate is $1.50, the commercial/industrial could be no more than $2.25.)
The bill requires that the Division of Municipal Finance in the Department of Revenue monitor fire district compliance with the requirements and issue periodic reports to the General Assembly regarding compliance.
Finally, the bill provides that, if enacted, it would not apply if it is specifically prohibited by the charter of a fire district.
The bill has been referred to the House Committee on Finance. Among the co-sponsors are Rep. Lisa P. Tomasso (D-Dist. 29, Coventry, West Greenwich) and Rep. Patricia A. Serpa (D-Dist. 27, West Warwick, Coventry, Warwick).
Brian Campbell
1:04 pm on Friday, February 1, 2013
Why doesn't Mr. Guthrie introduce legislation that would incorporate all the fire districts into one and create a more stable enviroment and rid the towns of duplications and reduce the rates across the board to effectively stabilze the tax rates and give the citizens actual relief?
mad hatter
6:56 pm on Friday, February 1, 2013
i would rather go the other way and make them all volunteer. ems is the only pros anyone needs.
LifelongCoventryResident
7:05 pm on Friday, February 1, 2013
Read the Coventry Reminder this week. He takes care of himself and not the taxpayer. All the politicians think of themselves and not us ! He is doing something that will raise the taxes on us once again. Come on Scott Guthrie...what website do you have that you can answer questions like these for us...the taxpayer?
John
11:47 pm on Friday, February 1, 2013
Why are you against a tiered tax system?? Do you think the home owner should pay the same rate as Wal-Mart?
John
11:45 pm on Friday, February 1, 2013
John assholelone started all this at the meetings to reduce the taxes on himself, simple as that. He doesn't live here Coventry is just his piggybank that daddy set up for him! People need to wake up!!
Old But Informed
4:24 pm on Saturday, February 2, 2013
You don't need to a fan of John Assalone to know that the CCFD is being run by a gang of liars and thieves.
Liketoknow
6:22 pm on Saturday, February 2, 2013
Well put Old But Informed. YOu only have to look at the behavior of the firefighters at the annual meeting over a year ago.
John
5:42 pm on Monday, February 4, 2013
Easy" old" your hatred for the Firefighters is showing thru. Wait until you have a heart attack, it won't be god you begging to save your life!!!
John
5:47 pm on Monday, February 4, 2013
"Old" when you call someone Liars and thieves, I think you need to explain??
Old But Informed
6:40 pm on Monday, February 4, 2013
Liars include an $800,000 "error" in their budget for two years after the "error" has been exposed.
Thieves are those who expect their neighbors to make up this "error" out of their hard earned money.
Get it?
RIPensionProvider
3:05 pm on Monday, February 4, 2013
Residents of Central Coventry Fire District need to read Guthrie's new bill, 2013 - H 5176, before it is passed. It allows for a supplemental fire tax and allows a fire station to operate even if annual appropriations are not approved. Nothing like looking after the tax payer’s best interest. http://webserver.rilin.state.ri.us/BillText/BillText13/HouseText13/H5176.pdf
Liketoknow
3:10 pm on Monday, February 4, 2013
Guthrie's a (former) firefighter; what else would you expect?
QuidnickCrusader
5:19 pm on Monday, February 4, 2013
Since I am a taxpayer residing in the Central Coventry Fire District, I decided to take your advice and read the text of the bill. I would suggest that everybody do the same, and read for themselves, rather than accept your half truth interpretation of what the bill actually does. You conveniently choose to omit that ANY supplemental tax imposition would require "a majority vote of the electors of the district" to be enacted. To your point regarding appropriations, this is the common and accepted practice of every city an/or town in the State, it has just never been previously codified for fire districts. All it does is level fund, the exception being that the only increase must be used for to pay bonded indebtedness, which would have required voter approval to execute the bonds in question in the first place. And I would submit that this DOES have the tax payer's best interest in mind; the resdiential tax payers, who would otherwise be subsidizing the protective services that cover commercial and industrial occupancies that are paying the same rate as a 3 bedroom, 1 bath ranch.
RIPensionProvider
9:24 am on Tuesday, February 5, 2013
QuidnickCrusader....does a" majority vote of the electors of the district mean" all the residents or the current board of directors at CCF. Why wouldn't all the residents of the district be allowed to vote on these issues that affect them. And what is next, it looks in addition to a supplemental tax, we are being set up for a fire tax on our vehicles. I have no problem with a multi rate tax system as long as it is approved by the ALL the residents of the fire district and not by this back door BS. I think the residents of CCF currently provide adequate funding to run the fire district. It is over generous pays, benefits, pensions, overtime as well as minimum staffing and a no layoff policy that has caused the current crisis.
QuidnickCrusader
5:06 pm on Tuesday, February 5, 2013
Again RIPP, READ THE BILL! " Electors of the district" means the registered voters of the district. The bill calls for voter approval of the items described, and no where does it empower the board of directors, comissioners, etc. to unilaterally make those decisions. To your point regarding salaries, pensions, overtime, minimum staffing, etc. as the cause of the financial crisis, you are plain wrong. If you had bothered to actually pay attention to Mr. Land's presentation back in December, he clearly stated and showed the evidence to concur, that the crisis was the result of a clerical error, plain and simple. Now where I believe we can agree, is that the affects of that error were exacerbated by inept and incompetent job performance by those with the fiduciary responsibilities at the management level. In that vein, I'm really interested to see what the State Police investigation will bring to light, and hopefully bring someone to justice.
John
5:45 pm on Monday, February 4, 2013
" QuidnickCrusader Please don't talk facts to these fools , They are drunk drinking JOHNNY"S JUICE" LOL
Old But Informed
6:43 pm on Monday, February 4, 2013
Is the $200,200 "error" a result of drinking "Johnny's Juice" or is the result of fraudulent behavior by principles of the CCFD?
Liketoknow
6:19 pm on Tuesday, February 5, 2013
So we have to listen to inept clueless fireman john again. The $800,000 write down by the tax collector was part of the problem and your chief Seltzer and his board chose not to inform the taxpayers'. They didn't even inform the treasurer so it wan't him keeping it quiet. As to the loss of vehicle taxes, the board merely reallocated the lost revenue to the homeowners. RIPP is correct about the mismanagement and overspending. It is not just the now famous $800,000 shortfall but the ridiculous overspending that casued these problems. The taxpayers had to pay over a million in overtime so the firefighters could take 21 sick days and 4 weeks of vacation every year. Where is the fairness? Part of the problem was a chief without a leash and a board without a clue.
John
11:22 pm on Monday, February 4, 2013
Old but stupid did you know the district lost 230,000 per year from the state not reimbursing on the car taxes for two years in a row? The 800,00.00 was not reported to the board by Tom LaColle the treasurer? Go back and read the minutes before you open your mouth!!
John
11:23 pm on Monday, February 4, 2013
Plus add in the fact there was NO TAX INCREASE!!!!
John
12:04 am on Wednesday, February 6, 2013
So people who don't agree with you are Firefighters?? Interesting !! Your over the top protection of the treasurer is a joke as he is the guy who informs the board !! Which leads me to believe your are him or Johnny "leave my".
Liketoknow
7:44 am on Wednesday, February 6, 2013
You will never cease to amaze me with your stupidity John. Disagreeing with me has nothing to do with figuring out that you're a fireman. It's the dumb narrow mind you have. By the way, it's you're, not your. I'm not defending anyone; I'm just replying to your lies and misinformation so whoever might be reading will know the truth.
John
3:00 pm on Wednesday, February 6, 2013
Better read the Headline stupid, go back to main page and see what the proposed budget is and business benefits!!! So who is stupid know???
Liketoknow
4:32 pm on Wednesday, February 6, 2013
If you really want to be informed, go to the special master's website and read the budget he's presenting dummy. You're still the one who's stupid and misinformed john and you'll probably stay that way.