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. The act clarifies that properties owned by the state will no longer be exempt, thereby increasing the tax base for municipalities. It retains existing exemptions for properties used for educational or religious purposes, as well as for lands belonging to the United States. The bill also outlines specific exemptions for properties held by religious organizations, educational institutions, and charitable entities, along with personal properties such as household items and improvements for nuclear fallout protection. Additionally, it includes provisions for manufacturing machinery, hydroelectric power-generation equipment, and tangible personal property used for recycling or hazardous waste treatment, while ensuring that property leased to non-exempt entities will be taxed to the tenant.

Furthermore, the bill proposes amendments to taxation laws regarding property exemptions for nonprofit organizations in Rhode Island, detailing a list of properties owned by qualified 501(c)(3) organizations. It allows cities and towns to establish tangible personal property exemptions to promote business growth. The bill also addresses the transition of nonprofit hospital facilities to for-profit status, stating that the local tax assessor will determine the valuation of their real and personal property, with an appeal process to the Rhode Island superior court. The act is set to take effect upon passage.

Statutes affected:
6011: 44-3-3