R.I. Gen. Laws § 42-64.9-4

Current through 2024 Public Law 457

Section 42-64.9-4 - Definitions and construction

As used in this chapter, unless the context otherwise requires, the term:

(1) "Certifiable building" means a mill complex or a building:

(i) That was constructed prior to January 1, 1950;

(ii) Having at least two (2) floors, excluding a basement;

(iii) Which is or will be used primarily for manufacturing, wholesale trade and other commercial purposes;

(iv) The use of which conforms to the comprehensive plan and local land use management ordinances of the municipality in which the building is located;

(v) That is proposed for substantial rehabilitation;

(vi) That has been at a minimum seventy-five percent (75%) vacant for a minimum of twenty-four (24) months at the time of submission by the municipality;

(vii) That is designated by the municipality for consideration as a certifiable building as hereinafter provided;

(viii) Meets other requirements as established by the council; and

(ix) Designated by the enterprise zone council as a certified building pursuant to the requirements of § 42-64.9-5.

(2) "Certification of an eligible business" means an annual process taking place on a calendar year basis to certify entities as eligible businesses for the purpose of this chapter. Businesses certified as eligible businesses for the purpose of this chapter, and which may also be eligible for certification as certified businesses under the provisions of § 42-64.3-3(4) must elect certification under only one designation of each certification year. This election must be made for each certification year; provided, that the business continues to be eligible for both designations on a year-to-year basis.

(3) "Certified building" means a building with respect to which the council has issued a written notice of final designation as a certified building pursuant to the provisions of § 42-64.9-6. A portion of a building may be treated as a separate building for purposes of this chapter if:

(i) It consists of a clearly identifiable part of a certifiable building, including, without limitation, one or more wings, stories, or other separable portions of a certifiable building;

(ii) It is held by a single owner, whether in fee or as a condominium, cooperative or leasehold interest; and

(iii) At least one eligible business reasonably could be operated within the confines of this portion.

(4) "Certified building owner" means an individual, partnership, corporation, limited liability company or other entity which is listed in the appropriate municipal records of land evidence as the owner of a certified building, and may include one or more successors in title to the owner of the building at the time the building received written notice of final designation as a certified building pursuant to § 42-64.9-6. A certified building owner may include the owner of a leasehold interest with a minimum term of fifty (50) years, with respect to which a memorandum of lease has been recorded in the land evidence records.

(5) "Eligible business" means any business, corporation, sole proprietorship, partnership, limited partnership or limited liability company or other entity which:

(i) Is located in a certified building after the building has undergone substantial rehabilitation as hereinafter defined;

(ii) Is engaged principally in manufacturing, wholesale trade, or other commercial business activities;

(iii) Whose total Rhode Island salaries and wages exceed the total Rhode Island salaries and wages paid to its employees in the prior calendar year;

(iv) Has received certification from the enterprise zone council pursuant to the rules and regulations promulgated by the council; and

(v) Which, as part of its annual certification:

(A) Obtains certificates of good standing from the Rhode Island division of taxation, the corporations division of the Rhode Island secretary of state, and the appropriate municipal authority;

(B) Provides the enterprise zone council an affidavit stating under oath that the entity seeking certification as a qualified business has not within the preceding twelve (12) months from the date of application for certification changed its legal status or location solely for the purpose of gaining favorable treatment under the provision of this chapter; and

(C) Meets certain other requirements set forth by the council.

(6) "Enterprise zone" means an enterprise zone established pursuant to § 42-64.3-4.

(7) "Enterprise zone council" or the "council" means the enterprise zone council established pursuant to § 42-64.3-3.1, and empowered with the same authority and given the same responsibilities under that section.

(8) "Mill complex" means two (2) or more mill buildings, located on the same or contiguous parcels of land, each of which, at one time, had the same owner(s).

(9) "Municipality" means any city or town within the state, whether now existing or hereafter created.

(10) "Qualified employee" means a full-time employee of an eligible business whose business activity originates and terminates from within the eligible business and certified building on a daily basis, and who is employed by the eligible business at the end of the calendar year, and who is a domiciled resident of the state of Rhode Island.

(11) "Rehabilitation and reconstruction costs" means and includes only those amounts incurred and paid by the certified building owner, after issuance of the notice of final designation of the building, solely and exclusively for the rehabilitation of the certified building and which are incurred and paid by the certified building owner to acquire tangible personal property and structural components of the certified building which:

(i) Are depreciated pursuant to 26 U.S.C. § 167;

(ii) Have a useful life of three (3) years or more as evidenced by the tax depreciation method taken and shown on the federal tax return of the certified building owner; and

(iii) Are acquired by purchase as defined in 26 U.S.C. § 179(d). Rehabilitation and reconstruction costs do not include amounts incurred or paid with respect to tangible personal property and structural components of the certified building which the certified building owner leases from any other person or corporation. For the purposes of the preceding sentence, any contract or agreement to lease or rent or for a license to use the property shall be considered a lease unless the contract or agreement is treated for the federal income tax purposes of the certified building owner as an installment purchase rather than a lease.

(12) "Salaries and wages" means salaries, wages, tips and other compensation as defined in the Internal Revenue Code of 1986, 26 U.S.C. § 61.

(13) "Substantial rehabilitation" means rehabilitation or reconstruction costs of a certified building in a dollar amount that equals or exceeds twenty percent (20%) of the market value of the certified building prior to rehabilitation or reconstruction, as said prior market value is determined by a Rhode Island licensed and certified appraiser who is independent of the certified building owner or owners and their affiliated corporations, and/or any tenants of the certified building and their affiliated corporations.

R.I. Gen. Laws § 42-64.9-4

P.L. 2004, ch. 277, § 1; P.L. 2004, ch. 284, § 1.