The bill amends Section 45-13-5.1 of the General Laws in Chapter 45-13, which pertains to state aid in lieu of property tax for certain exempt properties. It introduces new provisions that include municipal detention facility corporations, created pursuant to 45-54-1, as entities eligible for tax exemption under state law. Consequently, the General Assembly is mandated to annually appropriate a sum equal to twenty-seven percent (27%) of the local real property tax that would have been collected on these properties if they were taxable. This appropriation is intended for the cities and towns where the exempt properties are located.

The bill also clarifies that municipalities cannot record both taxes or payments from a for-profit hospital facility and distributions from appropriations related to the prior nonprofit status of that facility in the same fiscal year. Additionally, it emphasizes that the state budget must account for these appropriations annually and outlines the conditions under which payments may be reduced, particularly if municipalities suspend essential services to eligible facilities. The act is set to take effect upon passage.

Statutes affected:
5782: 45-13-5.1