The bill amends Section 35-4-1 of the General Laws to specify that all state receipts and revenue shall be credited to the general fund except for certain exceptions, including a new clause (16) that directs state withholding taxes received by the director of revenue from July 1, 2023, to be remitted to cities and towns as per chapter 71 of title 44. This is an addition to the list of exceptions which already excludes funds like the Permanent school fund and Veterans’ home fund. The bill also removes the clause regarding funds from the northeast dairy compact commission, as these funds were to be disbursed by June 30, 2002.

Additionally, the bill redefines the apportionment of state aid to cities and towns, including the calculation method based on tax effort and per capita income, and specifies the total amount of aid in the state's annual appropriation act. It introduces a new chapter in Title 44, "TAXATION," detailing the transfer of a portion of state income taxes from new employees of not-for-profit healthcare institutions and higher education institutions to cities and towns. The bill requires these institutions to report employment levels and state income taxes withheld, and mandates that the state remit 25% of these taxes for new employees to the respective city treasurers starting in fiscal year 2024. The act is set to take effect upon passage and does not indicate any deletions in the provided text.

Statutes affected:
2747: 35-4-1, 45-13-1