The bill amends Section 44-3-3 of the General Laws to update the list of properties and organizations exempt from taxation in Rhode Island, effective January 1, 2024. It includes exemptions for 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 cover burial grounds, libraries, charitable organizations, veterans' organizations, fraternal bodies, volunteer services, and individuals unable to pay taxes due to infirmity or poverty. Household 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 used by a non-exempt entity at a healthcare facility or institution of higher education 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," and provides tax exemptions for pollution control equipment, manufacturing machinery and equipment acquired after December 31, 1974, and allows municipalities to exempt certain machinery and equipment. It exempts precious metal bullion, hydroelectric power-generation equipment, and property owned by organizations focused on conserving open space, as well as tangible personal property used for recycling from hazardous wastes. Exemptions are also provided for motorboats, properties of nonprofit organizations and corporations, properties used for children's activities, renewable energy resources, and business or personal property within the town of Charlestown's community limits. The bill includes a new insertion granting tax exemption to Southside Community Land Trust in Providence and addresses the taxation of for-profit hospital facilities, allowing for appeals and stabilization agreements. Cities, towns, and fire districts are empowered to establish exemptions for tangible personal property to promote economic development. The act is effective upon passage.

Statutes affected:
3090: 44-3-3