2017 -- S 0967

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LC002892

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

     Introduced By: Senators Cote, and Picard

     Date Introduced: June 21, 2017

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is

hereby amended by adding thereto the following section:

     44-3-66. Hospital conversion.

     In the event an existing for-profit hospital is acquired by a not-for-profit corporation, or if

an existing for-profit hospital is otherwise converted to a not-for-profit hospital, that hospital shall

continue its pre-conversion tax status, and shall be subject to taxation by the local municipal

taxing authority, pursuant to the provisions of this chapter. Provided, the city or town council of

the local taxing authority may enter into alternative taxing arrangements with the hospital, which

may include, but shall not be limited to, a payment in lieu of taxes program or other agreement.

The definitions contained in §23-17.14-4 shall be applicable to this section.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

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     This act would provide that in the event a for-profit hospital was acquired by a not-for-

profit corporation, or if an existing for-profit hospital was otherwise converted to a not-for-profit

hospital, the hospital would continue its pre-conversion tax status, and would be subject to

taxation by the local municipal taxing authority.

     This act would take effect upon passage.

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