The bill amends Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid" to include provisions for general assembly appropriations in lieu of property taxes from certain exempt private and state properties. The amendment specifies that the general assembly shall annually appropriate a sum equal to twenty-seven percent (27%) of all tax that would have been collected had the real property been taxable to the cities and towns where the property is located. This includes private nonprofit institutions of higher education, nonprofit hospital facilities, state-owned and operated hospitals, veterans’ residential facilities, or correctional facilities with more than one hundred residents. The amendment also extends these annual payments to real estate owned by the state within the town of Exeter, regardless of the restrictions previously set forth.

The bill further clarifies that no city or town may record both taxes/payments under a stabilization agreement with a for-profit hospital facility and distributions of appropriations due to the prior nonprofit status of said facility in the same fiscal year. It defines "private nonprofit institution of higher education" and "nonprofit hospital facility" for the purposes of this section. Additionally, the bill outlines the procedure for calculating the grant payable to municipalities, the inclusion of the appropriation amount in the state budget, and the distribution of appropriations. It also states that the duty of towns or municipalities to provide public safety or other ordinary services to the properties or facilities listed does not pertain to the town of Exeter unless it establishes a municipal police department. Payments authorized by this section are to be initially applied to create a municipal police force in communities without such a service or to defray costs paid to the state for state police presence, with subsequent reductions for any suspension or reduction of essential services. The act would take effect upon passage.

Statutes affected:
2338: 45-13-5.1