The bill amends Section 44-3-3 of the General Laws to update the list of property exempt from taxation. It includes property owned by the state, the United States, religious and educational institutions, veterans' organizations, and individuals unable to pay taxes due to infirmity or poverty, among others. Notably, the bill specifies that private nonprofit colleges or universities in the town of Smithfield must reach an agreement with the town for police, fire, and rescue services, or be billed for the actual costs starting March 1, 2014. The city council of Cranston is also permitted to exempt property of veterans' organizations up to $500,000. Additionally, the bill addresses tax liens and exemptions for individuals in the towns of Burrillville and West Greenwich, with a five-year lien period on exempt property.

The bill defines a manufacturer and the conditions under which a business is considered primarily engaged in manufacturing. It exempts from taxation real and tangible personal property used to control pollution, manufacturing machinery and equipment acquired or used after December 31, 1974, precious metal bullion, hydroelectric power-generation equipment purchased after July 1, 1979, and property owned by or leased to certain charitable organizations. The bill also proposes a new exemption for municipal and school district employees with at least ten years of service, offering a fifty percent (50%) exemption or five thousand dollars ($5,000), whichever is greater. Furthermore, it outlines the valuation process for for-profit hospital facilities' real property and allows cities and towns to establish exemptions for tangible personal property to promote economic development. The act would take effect upon passage.

Statutes affected:
5118: 44-3-3