The bill proposes amendments to Section 44-3-3 of the General Laws in Chapter 44-3, titled "Property Subject to Taxation," by updating the list of properties exempt from taxation. It includes a new insertion that renumbers the section and a deletion that removes the exemption for property belonging to the state, except as provided in § 44-4-4.1. The bill maintains exemptions for various types of property, such as lands belonging to the United States, certain securities, real estate used for military purposes, buildings for free public schools and religious worship, and dwellings used by religious organizations' clergy. It also continues to exempt intangible personal property held for religious or charitable purposes, educational institutions' property, certain property of Brown University officers, burial grounds, property held by libraries and charitable organizations, veterans' organizations, volunteer fire and ambulance services, and individuals unable to pay taxes due to infirmity or poverty, among others.

The bill further defines a manufacturer for tax purposes, requiring that more than fifty percent of their gross receipts in the state come from manufacturing operations, and exempts machinery and equipment used in manufacturing, research and development, or quality assurance from taxation. It also details the qualifications for a person to be considered a manufacturer and specifies the types of properties that are exempt, such as those used to control water or air pollution, manufacturing machinery and equipment acquired after December 31, 1974, precious metal bullion, hydroelectric power-generation equipment, and property owned or leased by charitable organizations, subject to city or town council authorization. The bill includes provisions for the taxation of for-profit hospital facilities and allows cities, towns, or fire districts to establish exemptions for tangible personal property to promote economic development. The changes would take effect immediately upon passage, and the bill clarifies that its intent is to relate to taxation and property subject to taxation.

Statutes affected:
6013: 44-3-3