This bill introduces a new chapter, CHAPTER 73, to Title 44 of the General Laws, which establishes a framework for the transfer of a portion of state income taxes from new employees of not-for-profit healthcare institutions, health service corporations, and educational institutions to the city of Providence. The bill defines key terms such as "City," "Director," "Educational institution," "Healthcare institution," "New employee," and others.

It mandates that these institutions report their initial employment levels and the total amount of state income taxes withheld for the year 2025 by July 30, 2026. Additionally, institutions are required to provide annual updates on the aggregate number of new employees and the total amount of state income taxes withheld for each subsequent calendar year.

Starting from fiscal year 2028, the state will remit 25% of the state income taxes collected from the aggregate number of new employees since the initial reporting period to the city treasurer. The bill also amends existing laws to clarify that state withholding taxes received for calendar years 2026 and thereafter will be allocated to the city of Providence, and specifies that these funds shall not be considered part of the general state aid appropriations to the city. The act is set to take effect upon passage.

Statutes affected:
7239: 35-4-1, 45-13-1