The bill amends Section 44-5.3-2 of the General Laws in Chapter 44-5.3, which is entitled "Statewide Tangible Property Tax Exemption," to establish a new method for reimbursing cities, towns, and fire districts for lost tax revenues due to a statewide tangible property tax exemption. Starting in fiscal year 2025, these entities will receive reimbursements from state general revenues based on the tangible property tax revenues lost for the assessment date of December 31, 2023, due to the application of the statewide exemption. The calculation for reimbursement is specified as the lost tangible personal property assessment for the assessment date of December 31, 2023, divided by one thousand, multiplied by the tax rate for that date. If the lost assessment is unknown, entities are to estimate the lost assessment using internal policies and procedures in place as of December 31, 2022.

The bill also stipulates that reimbursements will be distributed in full on September 30, 2024, and every September 30 thereafter. However, no reimbursement will be provided to any entity that fails to submit its certified tax roll or other required information to the division of municipal finance. The division may rely on the provided information to calculate the reimbursement amount and may audit this information, though it is not required to do so. The act will take effect upon passage. Notably, the bill includes insertions that clarify the reimbursement calculation method and the division of municipal finance's role, while deletions remove the previous method of calculating the tangible property levy for the assessment dates of December 31, 2022, and December 31, 2023.

Statutes affected:
3099: 44-5.3-2