The bill amends Section 44-3-3 of the General Laws, detailing various property tax exemptions in Rhode Island, effective January 1, 2024. It exempts property belonging to the state, the United States, certain securities, real estate for military purposes, public schools, religious worship, and dwellings for clergy. It also exempts intangible personal property held for religious or charitable purposes, educational institutions, and certain property of Brown University's officers. Other exemptions include property especially exempt by charter, burial grounds, property held by libraries and charitable organizations, veterans' organizations, fraternal bodies, volunteer fire and ambulance services, and individuals unable to pay taxes due to infirmity or poverty. Household furniture, personal items, and improvements for fallout protection are also exempt. The bill specifies that property used by a non-exempt entity at a healthcare facility or institution of higher education will be taxed to the tenant, and the city of Cranston may exempt certain veterans' organization property up to $500,000.

The bill defines a "manufacturer" and "manufacturer's inventory," providing tax exemptions for pollution control equipment, manufacturing machinery and equipment acquired after December 31, 1974, and allows municipalities to exempt certain machinery and equipment. It exempts hydroelectric power-generation equipment, property owned by organizations focused on conserving open space, and tangible personal property used for recycling from hazardous wastes. It also exempts motorboats with paid annual fees, properties of various nonprofit organizations and corporations, properties of religious organizations, charitable nonprofits, educational institutions, renewable energy resources, and business or personal property within the town of Charlestown's community limits. The bill adds the Center for Mediation and Collaboration Rhode Island to the list of properties exempt from taxation and addresses the taxation of for-profit hospital facilities. Cities, towns, or fire districts may establish exemptions for tangible personal property to promote economic development, subject to uniform application and compliance with local tax classification requirements. The act is set to take effect upon passage.

Statutes affected:
7242: 44-3-3