The bill amends Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid" to include municipal detention facility corporations created pursuant to § 45-54-1 as entities exempt from property taxation under state law. The amendment specifies that the General Assembly shall annually appropriate funds to cities and towns hosting such tax-exempt properties, compensating them with a sum equal to twenty-seven percent (27%) of the taxes that would have been collected if the properties were not exempt. This provision applies to private nonprofit institutions of higher education, nonprofit hospital facilities, state-owned and operated hospitals, veterans’ residential facilities, and now, municipal detention facility corporations.

The bill outlines that no city or town may record both taxes/payments under a stabilization agreement with a for-profit hospital facility and distributions of appropriations related to the facility's prior nonprofit status in the same fiscal year. It also details the calculation of grants payable to municipalities, the inclusion of appropriations in the state budget, the distribution timeline, and the impact of the state's actions on municipal duties. Additionally, it states that payments authorized by this section may be reduced if the municipality suspends or reduces essential services to eligible facilities. The act would take effect upon passage.

Statutes affected:
2048: 45-13-5.1