The bill amends Section 44-3-3 of the General Laws, detailing various property tax exemptions in Rhode Island, effective January 1, 2024. It exempts property belonging to the state, the United States, certain securities, real estate for military purposes, public schools, religious worship, and dwellings for clergy. It also exempts intangible personal property for religious or charitable purposes, educational institutions, certain property of Brown University's officers, and property especially exempt by charter. Other exemptions include burial grounds, property held by libraries, charitable organizations, veterans' organizations, fraternal bodies, volunteer fire and ambulance services, and individuals unable to pay taxes due to infirmity or poverty. Household furniture, personal items, and improvements for fallout protection are exempt, and the city of Cranston may exempt veterans' organization property up to $500,000. The bill specifies that property of healthcare facilities or higher education institutions used by non-exempt entities will be taxed to the tenant and includes provisions for liens and appeals related to tax exemptions.

The bill also defines a "manufacturer" and "manufacturer's inventory," providing tax exemptions for manufacturing machinery and equipment acquired or used after December 31, 1974, if used exclusively in the manufacturing process, research and development, or for quality assurance. Municipalities may adopt ordinances to exempt certain machinery and equipment from taxation. Exemptions are also provided for precious metal bullion, hydroelectric power-generation equipment, and property owned by or held in trust for organizations focused on conserving open space or recycling materials. The bill exempts motorboats with paid annual fees, properties of nonprofit organizations and corporations, properties used for recreational, educational, and character-building activities for children, renewable energy resources, and business or personal property within the town of Charlestown's community limits. It also exempts real and personal property of various other nonprofit organizations and educational institutions within specific cities and towns in Rhode Island. The bill includes an insertion regarding the Rhode Island Coalition Against Domestic Violence and a deletion that previously ended with the Brain Injury Association of Rhode Island, Inc. It addresses the valuation of real property for for-profit hospital facilities and establishes exemptions for tangible personal property by cities, towns, or fire districts, with specific provisions for for-profit hospital facilities and the possibility of a stabilization agreement. The act will take effect upon passage.

Statutes affected:
3024: 44-3-3