The bill amends Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid" to adjust the provisions related to appropriations in lieu of property tax from certain exempt private and state properties. The amendment includes a new insertion that specifies 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 is in addition to the existing provision where the general assembly annually appropriates a sum equal to twenty-seven percent (27%) of all tax that would have been collected had the real property been taxable.

The bill also renumbers the subsections accordingly, with the existing subsection (f) becoming (g), and so on. It clarifies that the state budget offices shall include the amount of the annual appropriation in the state budget for each fiscal year, and that the distribution of appropriations shall be made by the state on or before July 31 of each year. The bill also states that any act or omission by the state with respect to this chapter shall not diminish the duty of any town or municipality to provide public safety or other ordinary services to the properties or facilities listed in subsection (a). The act would take effect upon passage and specifically mentions that the additional appropriation is intended for all low-income housing as part of the payment in lieu of taxes program to the municipality where the property is located beginning in fiscal year 2026.

Statutes affected:
2567: 45-13-5.1