Title 42
State Affairs and Government

Chapter 99
Convention Center Authority Act

R.I. Gen. Laws § 42-99-16

§ 42-99-16. Tax exemption.

(a) Any bonds, notes or other obligations issued by the corporation under the provisions of this chapter, their transfer, and the income therefrom (including any profits made on the sale thereof), shall at all times be free from taxation by the state or any political subdivision or other instrumentality of the state, excepting estate taxes.

(b) The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of this state, the increase of their commerce, welfare, and prosperity and for the improvement of their health and living conditions and will constitute the performance of an essential governmental function, and the corporation shall not be required to pay any real and personal property taxes or assessments upon or in respect of the convention center, civic center, and public garage portion of the project, levied by the municipality or any other political subdivision of the state; provided, that the corporation shall make payments in lieu of real and personal property taxes and assessments to the municipality and any other political subdivisions with respect to the hotel, and office building portion of the project owned by the corporation and located in the municipality and any other political subdivisions during the times that the corporation derives revenue from the lease or operation of the hotel, and office building portion of the project. Those payments in lieu of taxes shall be in amounts agreed upon by the corporation and the municipality and any other political subdivisions. Failing that agreement, the amounts of those payments in lieu of taxes shall be determined by the corporation using a formula that shall reasonably ensure that those amounts approximate the average amount of real and personal property taxes due throughout the municipality or political subdivision with respect to facilities of a similar nature and size. In addition, the corporation shall not be required to pay any payments to the municipality and any other political subdivisions in the manner of a public safety payment for such services rendered to the corporation by the municipality and such subdivisions to the civic center; provided, nothing herein shall preclude the municipality and any other political subdivision from charging for contracted public safety services for events at the civic center.

History of Section.
P.L. 1987, ch. 455, § 16; P.L. 1991, ch. 37, § 1; P.L. 2005, ch. 375, § 1; P.L. 2005, ch. 436, § 1.