This bill creates a new chapter in the General Laws entitled "Statewide Tangible Property Tax Exemption." The chapter establishes a tax exemption of $50,000 for tangible personal property for businesses, including small businesses, in cities, towns, and fire districts. This exemption applies to the assessment date of December 31, 2023, and each assessment date thereafter. Any tangible personal property valued above $50,000 will still be subject to taxation. The bill also provides for the reimbursement of lost tax revenue to municipalities starting in fiscal year 2025. The reimbursement amount will be equal to the tangible property levy for the assessment date of December 31, 2022, minus the tangible personal property levy for the assessment date of December 31, 2023. Reimbursements will be distributed to municipalities on September 30, 2024, and every September 30 thereafter. The bill also establishes a tax rate cap for tangible personal property, capping the tax rate at the level in effect for the assessment date of December 31, 2022. The bill removes certain limitations and requirements related to tangible tax rates and specifies that the statewide exemption does not apply to public service corporation tangible property and renewable energy resources and associated equipment. The bill also amends a section of the General Laws related to the computation of state aid to municipalities to include the new exemption in the calculation. The bill takes effect upon passage.

Statutes affected:
928  SUB A as amended: 45-13-14
928  SUB A: 45-13-14