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, it 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 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, excluding public utilities, building and construction contractors, and certain warehousing operations. It details tax exemptions for property and equipment used to control pollution, manufacturing machinery and equipment, precious metal bullion, hydroelectric power-generation equipment, and property owned by or leased to certain charitable organizations. The bill also proposes new exemptions for urban and small farmers, subject to municipal ordinance, and outlines the taxation process for for-profit hospital facilities, including how their property value is determined. Cities, towns, and fire districts are allowed to establish exemptions for tangible personal property to promote economic development, with the act taking effect upon passage. Insertions and deletions within the bill are not explicitly provided in the text summary, but it is clear that the bill modifies existing legal language to update definitions and tax exemptions.

Statutes affected:
882: 44-3-3