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

All revenues generated from this tax will be deposited into a restricted receipt account designated for the public school district of the municipality. The bill is designed to provide additional funding for local schools by taxing substantial endowments held by private higher education institutions. It will take effect immediately upon passage.