The bill amends Section 44-3-3 of the General Laws to update the list of property exempt from taxation. It includes exemptions for property belonging to the state, the United States, certain securities, real estate for military purposes, public schools, religious worship, clergy dwellings, intangible personal property for religious or charitable purposes, educational institutions, burial grounds, libraries, veterans' organizations, fraternal bodies, volunteer services, and individuals unable to pay due to infirmity or poverty. It also exempts household items, nuclear fallout improvements, aircraft with fees, and manufacturer’s inventory, and defines a manufacturer for tax purposes. Notably, it requires a private nonprofit college in Smithfield to reach an agreement with the town for services or be billed for them, and allows Cranston to exempt veterans' organization property up to $500,000. Tax liens and exemptions are also addressed for Burrillville and West Greenwich, with a five-year lien period on exempt property.

The bill further specifies tax exemptions for property and equipment, including those used for pollution control, manufacturing machinery and equipment, precious metal bullion, hydroelectric power-generation equipment, and property owned by or leased to charitable organizations, subject to city or town council authorization. It also outlines exemptions for tangible personal property used in recycling, hazardous waste treatment, motorboats with fees, and properties of various non-profit organizations such as performing arts centers, community action programs, and educational institutions. Additionally, the bill introduces an exemption for tangible personal property of new or startup micro-businesses (defined as having ten or fewer employees) from taxation for the first three years of operation. Other nonprofit properties are also exempt, and the cities of Central Falls and Pawtucket may exempt property used by a railroad entity for passenger services. The bill is to take effect upon passage.

Statutes affected:
5947: 44-3-3