This bill amends Section 44-3-3 of the General Laws in Chapter 44-3, "Property Subject to Taxation," to update the list of properties exempt from taxation and to clarify the taxation status of properties used by non-exempt entities. It introduces a new provision that any real and personal property of a health care facility or institution of higher education, which would normally be exempt from property taxation, will be taxed if it is leased to, subleased to, occupied, or used by a non-exempt entity or individual. The tenant in such cases is considered the owner for taxation purposes. The bill maintains existing exemptions for various types of property, including those belonging to the state, religious and educational institutions, veterans' organizations, and individuals unable to pay taxes due to infirmity or poverty, among others. It also specifies exemptions for certain types of manufacturing equipment and defines what constitutes a manufacturer's inventory and manufacturing machinery.

Additionally, the bill provides definitions and exemptions for property and equipment related to manufacturing, pollution control, and renewable energy. It allows municipalities to exempt certain machinery and equipment from taxation and mandates the department of revenue to assist local assessors in applying these definitions. The bill also includes exemptions for property used in recycling, hazardous waste treatment, and property owned by various non-profit organizations, provided it is used exclusively for the organization's purposes. It addresses the taxation of for-profit hospital facilities and permits cities and towns to establish exemptions for tangible personal property to promote economic development. The bill repeals any inconsistent provisions in charters, general, and special laws, and is set to take effect on January 1, 2024, ensuring that properties owned by nonprofit institutions but used by for-profit entities are subject to taxation.

Statutes affected:
5782  SUB A: 44-3-3
5782: 44-3-3