The bill amends Section 45-13-5.1 of the General Laws in Chapter 45-13, which pertains to state aid in lieu of property tax for certain exempt private and state properties. It establishes that the state of Rhode Island will annually appropriate a sum equal to twenty-seven percent (27%) of the local real property tax that would have been collected on real property owned by specific entities, including private nonprofit institutions of higher education and certain nonprofit and state-operated hospital facilities.

The bill introduces provisions that allow facilities operated by the federal Department of Defense, including but not limited to the Naval Station Newport, to be eligible for payments in lieu of taxes. This eligibility is justified by the scale of employment, regional economic benefit, and specific municipal demands placed on municipalities hosting these federal facilities, which include police, fire and rescue, public works infrastructure, utilities oversight, parks and beach operations, planning and permitting, library services, senior center programming, and emergency response services.

Additionally, the bill clarifies that municipalities cannot record both taxes or payments from a for-profit hospital and distributions from this state aid for the same fiscal year. It outlines the process for calculating and distributing these appropriations, ensuring that municipalities receive their due payments based on the assessed value of exempt properties. The act is set to take effect upon passage.

Statutes affected:
7249: 45-13-5.1