The bill amends Section 44-3-3 of the General Laws, introducing new exemptions and definitions related to property taxation, particularly focusing on properties owned by religious organizations, nonprofit colleges and universities, manufacturers, and urban farmers. It specifies that properties owned by religious organizations in Charlestown used by clergy or as convents, nunneries, or retreat centers are fully exempt from taxation. It also states that private nonprofit colleges or universities in Smithfield will be billed for actual costs of municipal services unless an agreement is reached with the town. The bill defines a manufacturer and manufacturer's inventory, excluding certain operations and retail stores not in the same building as the manufacturing plant. It exempts from taxation property used to control pollution, manufacturing machinery and equipment, and hydroelectric power-generation equipment. The bill also provides exemptions for property held by charitable organizations, including those focused on conserving open space, and tangible personal property used for recycling or hazardous waste treatment.

The bill further introduces new provisions for urban farming, expanding the definition of agricultural operations and providing tax incentives for properties used in such operations. It defines "urban area," "urban farmland," "urban farmer," and details a land use change tax with a sliding scale based on the duration of the land's classification as urban farmland. The bill also amends the definition of "net income" for business corporation tax to exclude income from the production of food by urban and small farmers and establishes exemptions for tangible personal property within certain limits. Additionally, it outlines exemptions from sales tax for various items and services, including those related to manufacturing, food, medicines, and specific adaptations for persons with disabilities. The bill also amends the definition of "commercial fishing" and provides tax exemptions for urban and small farmers on farm products used to grow food. Definitions for various agricultural operations and practices are introduced, aiming to support urban and small farming initiatives. The act would take effect upon passage.

Statutes affected:
2335: 44-3-3, 44-11-11, 44-18-30