This bill establishes a statewide tangible property tax exemption of $50,000 for businesses, including small businesses, beginning on December 31, 2023. Any tangible personal property valued above $50,000 will still be subject to taxation. Municipalities and fire districts will be reimbursed for lost tax revenue due to the exemption, excluding revenue loss resulting from individual personal exemptions and pre-existing uniform exemptions. Reimbursements will be distributed annually beginning in fiscal year 2025.

Additionally, this bill removes certain limitations and requirements related to tangible property tax rates and compliance with tax rate changes. The statewide exemption does not apply to public service corporation tangible property and renewable energy resources and associated equipment subject to taxation. The bill also amends a section of the General Laws related to state aid distribution to incorporate the changes made by this bill. The bill will take effect upon passage.

Statutes affected:
6333  SUB A: 45-13-14