The bill amends Section 44-3-3 of the General Laws to update the list of properties and entities exempt from taxation in Rhode Island, effective January 1, 2024. It includes exemptions for property belonging to the state, the United States, certain securities, military, educational, religious, and charitable organizations, as well as personal household items and improvements for fallout protection. The bill also specifies that property used by non-exempt entities within healthcare facilities or institutions of higher education will be taxed, and it allows the city of Cranston to exempt veterans' organization property up to $500,000. Definitions for "manufacturer" and "manufacturer's inventory" are clarified, and exemptions are provided for pollution control equipment, manufacturing machinery, and equipment acquired after December 31, 1974. Municipalities are permitted to adopt ordinances to exempt certain machinery and equipment from taxation, and exemptions are also granted for precious metal bullion and hydroelectric power-generation equipment.

The bill further extends tax exemptions to properties owned by, held in trust for, or leased to organizations focused on conserving open space, as well as tangible personal property used for recycling from hazardous wastes. It exempts motorboats with paid annual fees, properties of nonprofit organizations and corporations like the Providence Performing Arts Center, and properties used for children's recreational, educational, and character-building activities. Renewable energy resources used in residential systems and by manufacturers are exempt, and the town of Charlestown is authorized to exempt business or personal property within its community limits. The bill also exempts real and personal property of various other nonprofit organizations and educational institutions within specific cities and towns in Rhode Island. A new insertion, effective September 1, 2025, grants tax exemption to the Providence Preservation Society's property. The bill addresses the taxation of for-profit hospital facilities and allows for stabilization agreements and exemptions for tangible personal property to promote economic development. The act will take effect upon passage.

Statutes affected:
3067: 44-3-3