Taxation - Renewable Energy Systems

Cheryl A. George, CMC
Town Clerk
TOWN OF COVENTRY
1670 Flat River Road, Coventry, RI 02816
Tel. (401) 822-9173 Fax (401) 822-9132
June 12, 2017
TOWN OF COVENTRY
NOTICE
PUBLIC HEARING
Notice is hereby given that the Town Council will be in session at the Town Hall,
Council Chambers, 1670 Flat River Road, Coventry, Rhode Island on Monday,
June 26, 2017 at 7:00 p.m. for considering the proposed amendment to the following
Ordinance:
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE TOWN OF COVENTRY, CHAP TER 217-26,
TAXATION: RATABLE PROPERTY CLASSIFICATION; APPLICABLE TAX RATES. TO ALLOW FOR THE
TAXATION OF TANGIBLE PROPERTY ON CERTAIN TYPES OF RENEWABLE ENERGY SYSTEMS, AND TO
EXEMPT FROM TAXATION CERTAIN TYPES OF RENEWABLE ENERGY SYTEMS WHOSE SOLE PURPOS E IS
TO OFFESET ELECTRICITY BILLS AND NOT TO SELL POWER BACK TO THE ELECTRICAL DISTRIBUTION
SYSTEM.
WHEREAS, pursuant to Section 44-3-3 (a) (48) (49) of the Rhode Island General Laws, residential
and manufacturing properties that install renewable energy systems are exempt from local taxation; and
WHEREAS, pursuant to Section 44-5-3 (c)-(e) of the Rhode Island General Laws, it is the intent of
this Council that commercial renewable energy systems shall be subject to a tangible tax payment to the
municipality through rules and regulations that have been adopted by the Rhode Island Office of Energy
Resources for all commercial renewable energy systems; and
WHEREAS, pursuant to 44-3-21 of the Rhode island General Laws, city or town councils of the
various cities and towns may, by ordinance, exempt from taxation any renewable energy system located
in the city or town; and
WHEREAS, in accordance with Section 44-5-3 (c) of the RI General Laws the Town Council, of the
Town of Coventry, hereby authorizes its assessor to levy a tax on renewable energy tangible property as
defined in 39-26-5 in accordance with the rules and regulations executed by the Rhode Island Office of
Energy Resources; and
WHEREAS, in accordance with 44-3-21 of the RI General Laws, the Town of Coventry hereby
exempts from taxation commercial net-metered renewable energy systems whose sole purpose is to
offset electricity bills and not to sell power back to the electric distribution system; and
WHEREAS, property owners installing renewable energy systems shall be required to provide the
interconnection application between the renewable energy developer and the electric distribution
company (National Grid or Pascoag Utility) and any doc umentation of program enrollment (e.g.,
renewable energy growth or net metering enrollment forms) to the town indicating if the renewable
energy system is net-metered or if the system is selling a portion or all of the energy produced back to
National Grid under the Renewable Energy Growth Program. A copy of the final interconnection service
agreement executed between the renewable energy developer and electric distribution company shall be
provided to the town prior to construction of the renewable energy system.
NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF COVENTRY that
Chapter 217-26, Taxation: Ratable property classification; applicable tax rates, be amended as follows:
CHAPTER 217-26 Ratable property classification; applicable tax rates.
***
H. RENEWABLE EN ER GY SY STEMS
(1) in accordance with Section §44-5-3 (c) of the RI General Laws (circa 2017), the assessor is
authorized to levy a tax on renewable energy tangible property as defined in_§39-26-5 in accordance
with the rules and regulations executed by the Rhode Island Office of Energy Resources
(1) in accordance with §44-3-21 of the RI General Laws (circa 2017), commercial net-metered
renewable energy systems whose sole purpose is to offset electricity bills and not to sell power back
to the electric distribution system are exempt from taxation by the Town.
If approved, this Ordinance will take effect upon passage.
Individuals requesting interpreter services for the hearing impaired must notify the Town
Clerk's Office at 822-9173 seventy-two (72) hours in advance of the hearing date.
Per Order of the Town Council
Cheryl A. George, CMC Town Clerk