The bill introduces amendments to the General Laws, specifically in the chapters concerning State Funds and State Aid. It adds a new provision to Section 35-4-1, creating an exception (item 16) that directs state withholding taxes received by the director of revenue from July 1, 2023, to be remitted to the city of Providence as per chapter 71 of title 44. This is in addition to the existing 15 exceptions, with a minor deletion of the word "and" after item (14) to accommodate the new item. Furthermore, the bill amends Section 45-13-1, redefining how annual appropriations for state aid are apportioned, with a focus on tax effort and per capita income. It specifies that state income tax paid to the city of Providence under the new chapter 71 of title 44 is a separate allocation and not part of the general appropriation.

Additionally, the bill introduces a new chapter, Chapter 71, to Title 44, which outlines the transfer of a portion of state income taxes from new employees of not-for-profit healthcare institutions and institutions of higher education to the city of Providence. The bill requires these institutions to report initial employment levels and information about new employees to the director of the state division of taxation and the chief financial officer of the city of Providence. The state is then mandated to transfer 25% of the state income taxes from these new employees to the city. The bill includes definitions for key terms and establishes procedures for the reporting and transfer of funds, aiming to support the growth of these institutions in Providence.

Statutes affected:
863: 35-4-1, 45-13-1