The bill amends Section 45-13-5.1 of the General Laws in Chapter 45-13, titled "State Aid," to include municipal detention facility corporations as entities exempt from property tax under state law. It mandates that the General Assembly annually appropriates a sum equal to twenty-seven percent (27%) of the local real property tax that would have been collected on real property owned by these exempt entities. This includes municipal detention facility corporations created pursuant to 45-54-1, as well as private nonprofit institutions of higher education, nonprofit hospital facilities, and state-owned hospitals or correctional facilities with more than one hundred residents.

The bill specifies that no city or town can record both taxes or payments from a for-profit hospital facility and distributions from appropriations under this section that are attributable to the prior nonprofit status of that facility. It emphasizes that the appropriations must be included in the state budget and outlines the process for distribution to municipalities, ensuring that payments are made by July 31 each year. The act is designed to ensure that municipalities receive financial support for services provided to these exempt properties while maintaining their obligation to deliver public safety and other essential services. The act will take effect upon passage.

Statutes affected:
7461: 45-13-5.1