Maximum Levy

Regulation Authority:

R.I.G.L. §44-5-2 and §42-35-3(b)

Purpose and Reason:

To provide standards for municipalities to follow when applying to the Auditor General for relief from the statutory property tax cap based on an emergency as set-forth in Rhode Island General Law 44-5-2.

Brief statement of Reason for Finding Imminent Peril:

The Office of the Auditor General seeks to adopt amended Standards and Procedures for Certification of an Emergency in Accordance with General Law Section 44-5-2 for Rhode Island Cities and Towns [hereafter the “Standards”] on an emergency basis as provided for in Rhode Island General Law 42-35-3(b). The foregoing Statement of Need is submitted in conformity with Rhode Island General Law 42-35-3(b). Pursuant to Rhode Island General Law 44-5-2, a municipality must obtain the approval of the Auditor General prior to increasing the municipal tax levy beyond statutory limits established in Rhode Island General Law 44-5-2 whenever the requested increase is caused by expenditures of an emergency nature. In order to evaluate a request to exceed the statutory cap, the Auditor General has promulgated amended standards the municipality must meet to obtain approval to exceed the statutory cap. The vast majority of municipalities in Rhode Island are in the process of establishing their budgets and setting the property tax levy. The immediate adoption of the amended standards is necessary to insure the fiscal stability of local governments seeking to adopt their operating budgets, which include appropriations for public safety, and other programs intended to serve and protect the general public. The failure to adopt the amended standards on an emergency basis pursuant to Rhode Island General Law 42-35-3(b) could cause a delay in the adoption of local budgets, which would threaten the ability of local government to fund programs necessary to serve and protect the public. The failure to adopt the standards on an emergency basis would be inimical to the public welfare.