The bill amends Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid" to adjust the appropriations related to property tax exemptions for certain properties. Specifically, the bill mandates that the General Assembly annually appropriate a sum equal to twenty-seven percent (27%) of the taxes that would have been collected if the property owned by private nonprofit institutions of higher education, nonprofit hospital facilities, or state-owned and operated hospitals, veterans’ residential facilities, or correctional facilities were taxable. This payment is made to the cities and towns where the exempt property is located. The bill also stipulates that no city or town may record both taxes or payments under a stabilization agreement with a for-profit hospital facility and distributions of appropriations attributable to the prior nonprofit status of said facility in a fiscal year.

The bill introduces a new provision that, beginning in fiscal year 2026, for all property values assessed under § 44-5-13.11, the state shall appropriate an additional five percent (5%) of the assessed value as part of the payment in lieu of taxes program to the municipality where the property is located. This additional appropriation is intended to support municipalities with properties that are exempt from property tax. The bill also includes provisions for the inclusion of the appropriation amount in the state budget, the distribution of appropriations, and the conditions under which payments may be reduced if a municipality suspends or reduces essential services to eligible facilities. The act would take effect upon passage.

Statutes affected:
2567: 45-13-5.1