The bill amends Section 44-3-3 of the General Laws in Chapter 44-3, which addresses property subject to taxation, by removing the exemption for state-owned property from local property taxes. This change increases the tax base for local municipalities. The bill specifies that properties owned by the United States, real estate used for military purposes, and properties owned by religious or charitable organizations remain exempt from taxation. It also clarifies that properties related to educational institutions, healthcare facilities, and environmental control facilities will be taxed based on their use and agreements with local municipalities. Furthermore, any real and personal property leased to non-exempt entities will be taxed to the tenant, clarifying tax responsibilities.

The bill outlines exemptions for properties owned by qualified 501(c)(3) organizations, such as the American Lighthouse Foundation and the Rhode Island Philharmonic Orchestra. It introduces provisions for tangible personal property exemptions within city or town limits, allowing local governments to promote business growth and economic development. Additionally, the bill addresses the transition of nonprofit hospital facilities to for-profit status, stating that local assessors will determine the valuation of their real and personal property for tax purposes. It allows for stabilization agreements between municipalities and for-profit hospital facilities to clearly define tax implications. Overall, the bill aims to refine property tax exemptions while ensuring local governments can recoup costs associated with services provided to these properties.

Statutes affected:
6011: 44-3-3