The bill amends Section 44-3-3 of the General Laws in Chapter 44-3, focusing on property taxation and exemptions for nonprofit organizations, particularly colleges and universities in Providence. It introduces new provisions that require these institutions to contribute to municipal services through "memorandum payments," which are defined as payments made based on a memorandum of agreement with the host municipality. The bill establishes a baseline for these payments that will increase annually by the greater of inflation or three percent. If a college or university fails to meet this baseline, they will incur a tax equal to ten percent of their total revenue from the previous fiscal year, with the option for the municipality to increase this tax rate through an ordinance.

Additionally, the bill specifies that private nonprofit corporations organized as colleges or universities in Providence will be billed for the actual costs of municipal services supplied unless a new memorandum of agreement is established with the city, effective October 1, 2026. The bill further defines "actual costs of municipal services" and "municipal services" provided to these institutions. It also clarifies that properties owned by these colleges and universities will be subject to these billing requirements if at least one student resides in the property. Overall, the bill aims to ensure fair compensation for municipal services rendered to educational institutions while maintaining various exemptions for properties used for educational, religious, charitable, and military purposes.

Statutes affected:
1115: 44-3-3