The bill amends Section 44-3-3 of the General Laws in Chapter 44-3, which governs property subject to taxation, by updating the list of properties exempt from taxation. Key insertions include provisions that require private nonprofit colleges and universities in Providence to pay for municipal services unless they establish a new memorandum of agreement with the city by October 1, 2026. It also clarifies that real and personal property of healthcare facilities or institutions of higher education leased to non-exempt entities will be taxed to the tenant, who is deemed the owner for taxation purposes. The bill retains various exemptions for properties owned by religious organizations, educational institutions, and veterans' organizations, while introducing specific conditions for exemptions related to Charlestown and Cranston.

Additionally, the bill introduces new exemptions for improvements made to nuclear radiation shelters, hydroelectric power-generation equipment, and properties owned by organizations dedicated to conserving open space. It expands the list of exempt properties to include tangible personal property related to recycling and hazardous waste treatment, as well as properties owned by various nonprofit organizations. The bill also emphasizes the tax-exempt status of properties owned by organizations recognized under § 501(c)(3) of the Internal Revenue Code and establishes a framework for "memorandum payments" from nonprofit colleges and universities to their host municipalities. Overall, the bill aims to clarify and enhance the existing tax exemption framework while promoting economic development and supporting charitable organizations.

Statutes affected:
1115: 44-3-3