The bill amends Section 44-3-3 of the General Laws in Chapter 44-3, focusing on property tax exemptions. It introduces new provisions that exempt properties owned by the state, the United States, educational and religious organizations, and properties used for military purposes, burial grounds, and charitable organizations. Notably, it includes specific exemptions for manufacturing machinery, hydroelectric power-generation equipment, and tangible personal property related to recycling or hazardous waste treatment. The bill also establishes criteria for local city or town councils to authorize exemptions and outlines conditions under which properties owned by healthcare facilities or institutions of higher education may be taxed if leased to non-exempt entities.

Additionally, the bill specifically includes the Pokanoket Management Group, a Rhode Island nonprofit corporation, as a trustee of the Pokanoket Tribe Land Trust. It exempts the real and tangible personal property of the Pokanoket Management Group located in the town of Bristol, Rhode Island, which is used directly to cultivate, preserve, and protect the natural, cultural, traditional, and historical resources, watersheds, habitats, ecosystems, and archaeological sites within the ancestral territory of the Pokanoket people.

The bill modifies the framework for state aid in lieu of property tax for certain exempt properties, ensuring municipalities receive compensation for lost tax revenue. It stipulates that the state will annually appropriate a sum equal to 27% of the tax that would have been collected on these properties. Furthermore, it clarifies that cities and towns cannot simultaneously tax a for-profit hospital facility while receiving appropriations for its prior nonprofit status. The act is set to take effect on December 31, 2025.

Statutes affected:
1043: 44-3-3, 45-13-5.1
1043  SUB A: 44-3-3, 45-13-5.1