This bill aims to limit the tax exempt property that nonprofit colleges, universities, and hospitals may hold. It argues that these institutions now hold property that is not directly related to their educational or medical purposes, imposing a burden on the cities and towns in which they are located and the taxpayers in those areas. The bill adds a provision that exempts property used exclusively for burial grounds from property taxes and removes the exemption for property held by a nonprofit hospital for the sick or disabled. It also increases the exemption for real or personal estate belonging to veterans' organizations and clarifies the definition of a manufacturer for the purposes of property tax exemptions. Additionally, the bill adds a new exemption for property used as a treatment facility to control water or air pollution, as long as it is operated in compliance with environmental regulations.

This bill also adds several organizations to the list of entities that are exempt from property taxation, including religious nonprofit corporations, the Rhode Island Philharmonic Orchestra and Music School, the Station Fire Memorial Foundation, the Comprehensive Community Action Program, and the Pawtucket Youth Soccer Association. It also includes provisions for promoting business growth in the towns of Charlestown and Bristol, allowing tangible business or personal property to be exempt from taxation with authorization from the town council. The bill also allows cities and towns to impose property taxes on certain properties owned, leased, or operated by nonprofit institutions, including vacant lots, parking lots, and properties not exclusively used for their intended purposes.

Statutes affected:
878: 44-3-3