The bill amends Section 45-13-5.1 of the General Laws in Chapter 45-13, titled "State Aid," to include municipal detention facility corporations as properties exempt from taxation under state law. It mandates that the General Assembly annually appropriates a sum equal to twenty-seven percent (27%) of the local real property tax that would have been collected on such exempt properties, which include private nonprofit institutions of higher education, nonprofit hospital facilities, state-owned hospitals, and municipal detention facility corporations created pursuant to 45-54-1.

The bill specifies that no city or town can record both taxes or payments from a for-profit hospital facility and distributions of appropriations under this section related to the prior nonprofit status of that facility. It emphasizes that the state budget offices must include the annual appropriation in the state budget, and the distribution of appropriations will occur by July 31 each year. Additionally, any reduction in payments will occur if municipalities suspend or reduce essential services to the eligible facilities. This act will take effect upon passage.

Statutes affected:
32: 45-13-5.1