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

     

     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:

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     SECTION 1. Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid"

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is hereby amended to read as follows:

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     45-13-5.1. General assembly appropriations in lieu of property tax from certain

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exempt private and state properties.

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     (a) In lieu of the amount of local real property tax on real property owned by any private

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nonprofit institution of higher education, or any nonprofit hospital facility, or any state owned and

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operated hospital, veterans’ residential facility, or any municipal detention facility corporation

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created pursuant to § 45-54-1, or correctional facility occupied by more than one hundred (100)

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residents which may have been or will be exempted from taxation by applicable state law, exclusive

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of any facility operated by the federal government, the state of Rhode Island, or any of its

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subdivisions, the general assembly shall annually appropriate for payment to the several cities and

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towns in which the property lies a sum equal to twenty-seven percent (27%) of all tax that would

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have been collected had the real property been taxable; provided, however, said percentage shall

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be subject to adjustment pursuant to subsection (e) of this section.

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     (b) In no event shall any city or town record in a fiscal year both: (1) Taxes and/or payments

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under a stabilization agreement with a for-profit hospital facility; and (2) Distributions of

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appropriations under this section attributable to the prior nonprofit status of said for-profit hospital

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facility.

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     (c) As used in this section, “private nonprofit institution of higher education” means any

 

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institution engaged primarily in education beyond the high school level, the property of which is

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exempt from property tax under any of the subdivisions, and “nonprofit hospital facility” means

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any nonprofit hospital licensed by the state and which is used for the purpose of general medical,

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surgical, or psychiatric care and treatment.

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     (d) The grant payable to any municipality under the provision of this section shall be equal

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to twenty-seven percent (27%) of the property taxes that, except for any exemption to any

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institution of higher education or general hospital facility, would have been paid with respect to

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that exempt real property on the assessment list in the municipality for the assessment date of

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December 31, 1986, and with respect to such exempt real property appearing on an assessment list

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in the municipality on succeeding assessment dates. Provided, however, that the grant paid for the

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fiscal year ending June 30, 2008, shall be based upon the assessment list in the municipality as of

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December 31, 2004.

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     (e) The state budget offices shall include the amount of the annual appropriation in the state

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budget for the fiscal year commencing July 1, 1988, and each fiscal year thereafter. The amount of

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the annual distribution of appropriation payable to each eligible municipality in any year in

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accordance with this section shall be reduced proportionately in the event that the total of the annual

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appropriation in the state budget is insufficient to pay the eligible municipalities the amounts

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otherwise payable to said communities pursuant to subsection (a) of this section.

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     (f) Distribution of appropriations shall be made by the state on or before July 31 of 1988

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and each July 31 thereafter or following verified receipt of a municipality’s assessment data for the

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following fiscal year’s payment, whichever is later, and the payments may be counted as a

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receivable by any city or town for a fiscal year ending the preceding June 30.

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     (g) Any act or omission by the state with respect to this chapter shall in no way diminish

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the duty of any town or municipality to provide public safety or other ordinary services to the

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properties or facilities of the type listed in subsection (a).

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     (h) Provided, that payments authorized pursuant to this section shall be reduced pro rata,

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for that period of time that the municipality suspends or reduces essential services to eligible

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facilities. For the purposes of this section “essential services” include, but are not to be limited to,

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police, fire and rescue.

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     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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     This act would include municipal detention facility corporations as exempt from taxation

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under state law, and require the general assembly to appropriate, annually, for payment to the city

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or town where the property is located a sum equal to twenty-seven percent (27%) of all tax that

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would have been collected if the property was taxable.

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     This act would take effect upon passage.

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