The bill amends the General Laws regarding the crediting of state revenue and the apportionment of state aid. It introduces a new provision that state withholding taxes received by the director of revenue starting July 1, 2023, will be remitted to cities and towns as per chapter 71 of title 44, adding to the list of exceptions to the general rule that all state receipts are credited to the general fund. The bill also modifies the language in the list of exceptions by replacing the word "and" with a semicolon to accommodate the new insertion. Additionally, it specifies that the portion of state income tax paid to cities and towns will not be considered part of an appropriation or allocation under chapter 45-13, but as a separate allocation, and introduces a new chapter (Chapter 72) to Title 44 entitled "TAXATION," which addresses 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.

The bill sets forth definitions and reporting requirements for not-for-profit healthcare institutions, health service corporations, and private educational institutions in Rhode Island. These institutions must report their initial employment levels and the total amount of state income taxes withheld for the year 2023 to the director of the state division of taxation and the chief financial officer of each city by July 30, 2024. Annually, they must also report the number of new employees and the total state income taxes withheld for these employees. The state is then required to remit 25% of the state income taxes from the total new employees in each city to the city treasurers, starting with the fiscal year 2024. The act aims to support cities and towns by allocating a portion of state income taxes from new employees in the growing sectors of healthcare and education, and it will take effect upon passage. No deletions are mentioned in the summary.