2023 -- H 5976 | |
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LC002031 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2023 | |
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A N A C T | |
RELATING TO TOWNS AND CITIES -- STATE AID | |
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Introduced By: Representatives Giraldo, Voas, and Morales | |
Date Introduced: March 01, 2023 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid" |
2 | is hereby amended to read as follows: |
3 | 45-13-5.1. General assembly appropriations in lieu of property tax from certain |
4 | exempt private and state properties. |
5 | (a) In lieu of the amount of local real property tax on real property owned by any private |
6 | nonprofit institution of higher education, or any nonprofit hospital facility, or any state owned and |
7 | operated hospital, veterans’ residential facility, or any municipal detention facility corporation |
8 | created pursuant to § 45-54-1, or correctional facility occupied by more than one hundred (100) |
9 | residents which may have been or will be exempted from taxation by applicable state law, exclusive |
10 | of any facility operated by the federal government, the state of Rhode Island, or any of its |
11 | subdivisions, the general assembly shall annually appropriate for payment to the several cities and |
12 | towns in which the property lies a sum equal to twenty-seven percent (27%) of all tax that would |
13 | have been collected had the real property been taxable; provided, however, said percentage shall |
14 | be subject to adjustment pursuant to subsection (e) of this section. |
15 | (b) In no event shall any city or town record in a fiscal year both: (1) Taxes and/or payments |
16 | under a stabilization agreement with a for-profit hospital facility; and (2) Distributions of |
17 | appropriations under this section attributable to the prior nonprofit status of said for-profit hospital |
18 | facility. |
19 | (c) As used in this section, “private nonprofit institution of higher education” means any |
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1 | institution engaged primarily in education beyond the high school level, the property of which is |
2 | exempt from property tax under any of the subdivisions, and “nonprofit hospital facility” means |
3 | any nonprofit hospital licensed by the state and which is used for the purpose of general medical, |
4 | surgical, or psychiatric care and treatment. |
5 | (d) The grant payable to any municipality under the provision of this section shall be equal |
6 | to twenty-seven percent (27%) of the property taxes that, except for any exemption to any |
7 | institution of higher education or general hospital facility, would have been paid with respect to |
8 | that exempt real property on the assessment list in the municipality for the assessment date of |
9 | December 31, 1986, and with respect to such exempt real property appearing on an assessment list |
10 | in the municipality on succeeding assessment dates. Provided, however, that the grant paid for the |
11 | fiscal year ending June 30, 2008, shall be based upon the assessment list in the municipality as of |
12 | December 31, 2004. |
13 | (e) The state budget offices shall include the amount of the annual appropriation in the state |
14 | budget for the fiscal year commencing July 1, 1988, and each fiscal year thereafter. The amount of |
15 | the annual distribution of appropriation payable to each eligible municipality in any year in |
16 | accordance with this section shall be reduced proportionately in the event that the total of the annual |
17 | appropriation in the state budget is insufficient to pay the eligible municipalities the amounts |
18 | otherwise payable to said communities pursuant to subsection (a) of this section. |
19 | (f) Distribution of appropriations shall be made by the state on or before July 31 of 1988 |
20 | and each July 31 thereafter or following verified receipt of a municipality’s assessment data for the |
21 | following fiscal year’s payment, whichever is later, and the payments may be counted as a |
22 | receivable by any city or town for a fiscal year ending the preceding June 30. |
23 | (g) Any act or omission by the state with respect to this chapter shall in no way diminish |
24 | the duty of any town or municipality to provide public safety or other ordinary services to the |
25 | properties or facilities of the type listed in subsection (a). |
26 | (h) Provided, that payments authorized pursuant to this section shall be reduced pro rata, |
27 | for that period of time that the municipality suspends or reduces essential services to eligible |
28 | facilities. For the purposes of this section “essential services” include, but are not to be limited to, |
29 | police, fire and rescue. |
30 | 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 TOWNS AND CITIES -- STATE AID | |
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1 | This act would include municipal detention facility corporations as exempt from taxation |
2 | under state law, and require the general assembly to appropriate, annually, for payment to the city |
3 | or town where the property is located a sum equal to twenty-seven percent (27%) of all tax that |
4 | would have been collected if the property was taxable. |
5 | This act would take effect upon passage. |
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