The bill amends the General Laws regarding state funds and state aid, introducing new provisions and redefining existing ones. It inserts a new clause into Section 35-4-1, specifying that state withholding taxes received by the director of revenue from July 1, 2023, will be remitted to cities and towns as per chapter 71 of title 44. This amendment also removes outdated language concerning funds from the northeast dairy compact commission and updates the list of exceptions to revenue credited to the general fund. Additionally, the bill revises Section 45-13-1 to redefine the apportionment of state aid, including terms such as "income" and "population," and outlines the method for calculating and distributing aid. It adjusts the total amount of aid for various fiscal years and clarifies that the portion of the state income tax paid to cities and towns is considered a separate allocation.

The bill also adds a new chapter to Title 44, "TAXATION," focusing on the transfer of a portion of state income taxes from new employees of not-for-profit healthcare institutions and institutions of higher education to cities and towns. It defines relevant terms and requires these institutions to report initial employment levels and state income taxes withheld. Each institution must annually provide the number of new employees and the total state income taxes withheld for these employees. The state will then remit 25% of these taxes to the city treasurers, starting in fiscal year 2024. The act aims to support cities and towns in managing growth in the healthcare and education sectors and will take effect upon passage. No deletions are indicated in the provided text.

Statutes affected:
7403: 35-4-1, 45-13-1