The bill amends Chapter 44-3 of the General Laws by introducing a new section, 44-3-70, which authorizes cities and towns to impose a tax on the endowments of private institutions of higher education. Specifically, municipalities may levy a tax of up to two percent (2%) on endowments that exceed one billion dollars ($1,000,000,000). This tax must be enacted through an ordinance adopted by the local city or town council.

All tax revenues generated pursuant to this section shall be deposited in a restricted receipt account by the city or town, to be used exclusively for the public school district of that municipality. The bill is set to take effect immediately upon passage.