2013 -- S 0136

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LC00470

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TOWNS AND CITIES - STATE AID

     Introduced By: Senator Louis P. DiPalma

     Date Introduced: January 24, 2013

     Referred To: Senate 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

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Aid" 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. -- (a) In lieu of the amount of local real property tax on

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real property owned by any private nonprofit institution of higher education, or any nonprofit

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hospital facility, or any state owned and operated hospital, veterans' residential facility, or

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correctional facility occupied by more than one hundred (100) residents or any active military

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

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

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

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

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would have been collected had the property been taxable.

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

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

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

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to 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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      (d) The state budget offices shall include the amount of the annual grant 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 grant payable to each municipality in any year in accordance with this section shall be

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reduced proportionately in the event that the total of the annual grants in any year exceeds the

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amount appropriated that year for the purposes of this section.

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      (e) 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, and the payments may be counted as a receivable by any city or town

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for a fiscal year ending the preceding June 30.

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      (f) 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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      (g) 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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LC00470

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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 allow cities and towns to receive state aid in lieu of taxes not paid by

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federal government facilities located in their jurisdictions.

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     This act would take effect upon passage.

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LC00470

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