2022 -- H 7956 | |
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LC004984 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2022 | |
____________ | |
A N A C T | |
RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION | |
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Introduced By: Representatives Morales, Williams, Ranglin-Vassell, J Lombardi, Diaz, | |
Date Introduced: March 07, 2022 | |
Referred To: House Municipal Government & Housing | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The general assembly finds as follows: |
2 | WHEREAS, In the 1900s, the general assembly enacted numerous charters incorporating |
3 | nonprofit colleges and universities for specific educational purposes set forth in the charters; and |
4 | WHEREAS, The corporate charters of colleges and universities exempted from taxation |
5 | property owned by said educational institutions, provided that the real estate "not used for the |
6 | corporate purposes shall not be so exempt;" and |
7 | WHEREAS, The state supreme court has further indicated that issues regarding statutory |
8 | tax exemptions for chartered and nonprofit organizations implicate public policy decisions to be |
9 | addressed by the general assembly; and |
10 | WHEREAS, The language of chartered colleges and universities has never been amended |
11 | to remove the tax exemptions provided by the legislation; and |
12 | WHEREAS, The real and personal property held by the chartered entities has increased |
13 | exponentially, far exceeding what the general assembly would have contemplated when the charters |
14 | were enacted over a century ago; and |
15 | WHEREAS, Chartered colleges, universities hold property for use by and for commercial, |
16 | for-profit ventures such as eating establishments, shopping centers, parking garages, and other |
17 | operations not directly related to the provision of education; and |
18 | WHEREAS, The tax exemptions afforded to all property owned by chartered nonprofit |
19 | colleges and universities, regardless of their uses, imposes a significant burden on the cities and |
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1 | towns in which they are located, and the taxpaying residents of such cities and towns; and |
2 | THEREFORE, The general assembly deems it appropriate to place limitations on the tax |
3 | exempt real and personal property a nonprofit college or university may hold. |
4 | SECTION 2. Section 44-3-3 of the General Laws in Chapter 44-3 entitled "Property |
5 | Subject to Taxation" is hereby amended to read as follows: |
6 | 44-3-3. Property exempt. [Effective January 1, 2022.] |
7 | (a) The following property is exempt from taxation: |
8 | (1) Property belonging to the state, except as provided in § 44-4-4.1; |
9 | (2) Lands ceded or belonging to the United States; |
10 | (3) Bonds and other securities issued and exempted from taxation by the government of |
11 | the United States or of this state; |
12 | (4) Real estate, used exclusively for military purposes, owned by chartered or incorporated |
13 | organizations approved by the adjutant general and composed of members of the national guard, |
14 | the naval militia, or the independent, chartered-military organizations; |
15 | (5) Buildings for free public schools, buildings for religious worship, and the land upon |
16 | which they stand and immediately surrounding them, to an extent not exceeding five (5) acres so |
17 | far as the buildings and land are occupied and used exclusively for religious or educational |
18 | purposes; |
19 | (6) Dwellings houses and the land on which they stand, not exceeding one acre in size, or |
20 | the minimum lot size for zone in which the dwelling house is located, whichever is the greater, |
21 | owned by, or held in trust for, any religious organization and actually used by its officiating clergy; |
22 | provided, further, that in the town of Charlestown, where the property previously described in this |
23 | paragraph is exempt in total, along with dwelling houses and the land on which they stand in |
24 | Charlestown, not exceeding one acre in size, or the minimum lot size for zone in which the dwelling |
25 | house is located, whichever is the greater, owned by, or held in trust for, any religious organization |
26 | and actually used by its officiating clergy, or used as a convent, nunnery, or retreat center by its |
27 | religious order; |
28 | (7) Intangible personal property owned by, or held in trust for, any religious or charitable |
29 | organization, if the principal or income is used or appropriated for religious or charitable purposes; |
30 | (8) Buildings and personal estate owned by any corporation used for a school, academy, or |
31 | seminary of learning, except for a nonprofit institution of higher education and of any incorporated |
32 | public charitable institution, and the land upon which the buildings stand and immediately |
33 | surrounding them to an extent not exceeding one acre, so far as they are used exclusively for |
34 | educational purposes, but no property or estate whatever is hereafter exempt from taxation in any |
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1 | case where any part of its income or profits, or of the business carried on there, is divided among |
2 | its owners or stockholders; provided, however, that unless any private nonprofit corporation |
3 | organized as a college or university located in the town of Smithfield reaches a memorandum of |
4 | agreement with the town of Smithfield, the town of Smithfield shall bill the actual costs for police, |
5 | fire, and rescue services supplied, unless otherwise reimbursed, to said corporation commencing |
6 | March 1, 2014; |
7 | (9) Estates, persons, and families of the president and professors for the time being of |
8 | Brown University for not more than ten thousand dollars ($10,000) for each officer, the officer's |
9 | estate, person, and family included, but only to the extent that any person had claimed and utilized |
10 | the exemption prior to, and for a period ending, either on or after December 31, 1996; |
11 | (10) Property especially exempt by charter unless the exemption has been waived in whole |
12 | or in part, and except as provided in subsection (c) of this section; |
13 | (11) Lots of land exclusively for burial grounds; |
14 | (12) Property, real and personal, held for, or by, an incorporated library, society, or any |
15 | free public library, or any free public library society, so far as the property is held exclusively for |
16 | library purposes, or for the aid or support of the aged poor, or poor friendless children, or the poor |
17 | generally, or for a nonprofit hospital for the sick or disabled; |
18 | (13) Real or personal estate belonging to, or held in trust for, the benefit of incorporated |
19 | organizations of veterans of any war in which the United States has been engaged, the parent body |
20 | of which has been incorporated by act of Congress, to the extent of four hundred thousand dollars |
21 | ($400,000) if actually used and occupied by the association; provided, that the city council of the |
22 | city of Cranston may by ordinance exempt the real or personal estate as previously described in |
23 | this subdivision located within the city of Cranston to the extent of five hundred thousand dollars |
24 | ($500,000); |
25 | (14) Property, real and personal, held for, or by, the fraternal corporation, association, or |
26 | body created to build and maintain a building or buildings for its meetings or the meetings of the |
27 | general assembly of its members, or subordinate bodies of the fraternity, and for the |
28 | accommodation of other fraternal bodies or associations, the entire net income of which real and |
29 | personal property is exclusively applied or to be used to build, furnish, and maintain an asylum or |
30 | asylums, a home or homes, a school or schools, for the free education or relief of the members of |
31 | the fraternity, or the relief, support, and care of worthy and indigent members of the fraternity, their |
32 | wives, widows, or orphans, and any fund given or held for the purpose of public education, |
33 | almshouses, and the land and buildings used in connection therewith; |
34 | (15) Real estate and personal property of any incorporated volunteer fire engine company |
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1 | or incorporated volunteer ambulance or rescue corps in active service; |
2 | (16) The estate of any person who, in the judgment of the assessors, is unable from infirmity |
3 | or poverty to pay the tax; provided, that in the towns of Burrillville and West Greenwich, the tax |
4 | shall constitute a lien for five (5) years on the property where the owner is entitled to the exemption. |
5 | At the expiration of five (5) years, the lien shall be abated in full. Provided, if the property is sold |
6 | or conveyed, or if debt secured by the property is refinanced during the five-year (5) period, the |
7 | lien immediately becomes due and payable; any person claiming the exemption aggrieved by an |
8 | adverse decision of an assessor shall appeal the decision to the local board of tax review and |
9 | thereafter according to the provisions of § 44-5-26; |
10 | (17) Household furniture and family stores of a housekeeper in the whole, including |
11 | clothing, bedding, and other white goods, books, and all other tangible personal property items that |
12 | are common to the normal household; |
13 | (18) Improvements made to any real property to provide a shelter and fallout protection |
14 | from nuclear radiation, to the amount of one thousand five hundred dollars ($1,500); provided, that |
15 | the improvements meet applicable standards for shelter construction established, from time to time, |
16 | by the Rhode Island emergency management agency. The improvements are deemed to comply |
17 | with the provisions of any building code or ordinance with respect to the materials or the methods |
18 | of construction used and any shelter or its establishment is deemed to comply with the provisions |
19 | of any zoning code or ordinance; |
20 | (19) Aircraft for which the fee required by § 1-4-6 has been paid to the tax administrator; |
21 | (20) Manufacturer's inventory. |
22 | (i) For the purposes of §§ 44-4-10, 44-5-3, 44-5-20, and 44-5-38, a person is deemed to be |
23 | a manufacturer within a city or town within this state if that person uses any premises, room, or |
24 | place in it primarily for the purpose of transforming raw materials into a finished product for trade |
25 | through any or all of the following operations: adapting, altering, finishing, making, and |
26 | ornamenting; provided, that public utilities; non-regulated power producers commencing |
27 | commercial operation by selling electricity at retail or taking title to generating facilities on or after |
28 | July 1, 1997; building and construction contractors; warehousing operations, including distribution |
29 | bases or outlets of out-of-state manufacturers; and fabricating processes incidental to warehousing |
30 | or distribution of raw materials, such as alteration of stock for the convenience of a customer; are |
31 | excluded from this definition; |
32 | (ii) For the purposes of this section and §§ 44-4-10 and 44-5-38, the term "manufacturer's |
33 | inventory," or any similar term, means and includes the manufacturer's raw materials, the |
34 | manufacturer's work in process, and finished products manufactured by the manufacturer in this |
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1 | state, and not sold, leased, or traded by the manufacturer or its title or right to possession divested; |
2 | provided, that the term does not include any finished products held by the manufacturer in any retail |
3 | store or other similar selling place operated by the manufacturer whether or not the retail |
4 | establishment is located in the same building in which the manufacturer operates the manufacturing |
5 | plant; |
6 | (iii) For the purpose of § 44-11-2, a "manufacturer" is a person whose principal business |
7 | in this state consists of transforming raw materials into a finished product for trade through any or |
8 | all of the operations described in paragraph (i) of this subdivision. A person will be deemed to be |
9 | principally engaged if the gross receipts that person derived from the manufacturing operations in |
10 | this state during the calendar year or fiscal year mentioned in § 44-11-1 amounted to more than |
11 | fifty percent (50%) of the total gross receipts that person derived from all the business activities in |
12 | which that person engaged in this state during the taxable year. For the purpose of computing the |
13 | percentage, gross receipts derived by a manufacturer from the sale, lease, or rental of finished |
14 | products manufactured by the manufacturer in this state, even though the manufacturer's store or |
15 | other selling place may be at a different location from the location of the manufacturer's |
16 | manufacturing plant in this state, are deemed to have been derived from manufacturing; |
17 | (iv) Within the meaning of the preceding paragraphs of this subdivision, the term |
18 | "manufacturer" also includes persons who are principally engaged in any of the general activities |
19 | coded and listed as establishments engaged in manufacturing in the Standard Industrial |
20 | Classification Manual prepared by the Technical Committee on Industrial Classification, Office of |
21 | Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as |
22 | revised from time to time, but eliminating as manufacturers those persons, who, because of their |
23 | limited type of manufacturing activities, are classified in the manual as falling within the trade |
24 | rather than an industrial classification of manufacturers. Among those thus eliminated, and |
25 | accordingly also excluded as manufacturers within the meaning of this paragraph, are persons |
26 | primarily engaged in selling, to the general public, products produced on the premises from which |
27 | they are sold, such as neighborhood bakeries, candy stores, ice cream parlors, shade shops, and |
28 | custom tailors, except, that a person who manufactures bakery products for sale primarily for home |
29 | delivery, or through one or more non-baking retail outlets, and whether or not retail outlets are |
30 | operated by the person, is a manufacturer within the meaning of this paragraph; |
31 | (v) The term "Person" means and includes, as appropriate, a person, partnership, or |
32 | corporation; and |
33 | (vi) The department of revenue shall provide to the local assessors any assistance that is |
34 | necessary in determining the proper application of the definitions in this subdivision; |
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1 | (21) Real and tangible personal property acquired to provide a treatment facility used |
2 | primarily to control the pollution or contamination of the waters or the air of the state, as defined |
3 | in chapter 12 of title 46 and chapter 25 of title 23, respectively, the facility having been constructed, |
4 | reconstructed, erected, installed, or acquired in furtherance of federal or state requirements or |
5 | standards for the control of water or air pollution or contamination, and certified as approved in an |
6 | order entered by the director of environmental management. The property is exempt as long as it is |
7 | operated properly in compliance with the order of approval of the director of environmental |
8 | management; provided, that any grant of the exemption by the director of environmental |
9 | management in excess of ten (10) years is approved by the city or town in which the property is |
10 | situated. This provision applies only to water and air pollution control properties and facilities |
11 | installed for the treatment of waste waters and air contaminants resulting from industrial |
12 | processing; furthermore, it applies only to water or air pollution control properties and facilities |
13 | placed in operation for the first time after April 13, 1970; |
14 | (22) Manufacturing machinery and equipment acquired or used by a manufacturer after |
15 | December 31, 1974. Manufacturing machinery and equipment is defined as: |
16 | (i) Machinery and equipment used exclusively in the actual manufacture or conversion of |
17 | raw materials or goods in the process of manufacture by a manufacturer, as defined in subdivision |
18 | (20), and machinery, fixtures, and equipment used exclusively by a manufacturer for research and |
19 | development or for quality assurance of its manufactured products; |
20 | (ii) Machinery and equipment that is partially used in the actual manufacture or conversion |
21 | of raw materials or goods in process of manufacture by a manufacturer, as defined in subdivision |
22 | (20), and machinery, fixtures, and equipment used by a manufacturer for research and development |
23 | or for quality assurance of its manufactured products, to the extent to which the machinery and |
24 | equipment is used for the manufacturing processes, research and development, or quality assurance. |
25 | In the instances where machinery and equipment is used in both manufacturing and/or research and |
26 | development and/or quality assurance activities and non-manufacturing activities, the assessment |
27 | on machinery and equipment is prorated by applying the percentage of usage of the equipment for |
28 | the manufacturing, research and development, and quality-assurance activity to the value of the |
29 | machinery and equipment for purposes of taxation, and the portion of the value used for |
30 | manufacturing, research and development, and quality assurance is exempt from taxation. The |
31 | burden of demonstrating this percentage usage of machinery and equipment for manufacturing and |
32 | for research and development and/or quality assurance of its manufactured products rests with the |
33 | manufacturer; and |
34 | (iii) Machinery and equipment described in §§ 44-18-30(7) and 44-18-30(22) that was |
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1 | purchased after July 1, 1997; provided that the city or town council of the city or town in which the |
2 | machinery and equipment is located adopts an ordinance exempting the machinery and equipment |
3 | from taxation. For purposes of this subsection, city councils and town councils of any municipality |
4 | may, by ordinance, wholly or partially exempt from taxation the machinery and equipment |
5 | discussed in this subsection for the period of time established in the ordinance and may, by |
6 | ordinance, establish the procedures for taxpayers to avail themselves of the benefit of any |
7 | exemption permitted under this section; provided, that the ordinance does not apply to any |
8 | machinery or equipment of a business, subsidiary, or any affiliated business that locates or relocates |
9 | from a city or town in this state to another city or town in the state; |
10 | (23) Precious metal bullion, meaning any elementary metal that has been put through a |
11 | process of melting or refining, and that is in a state or condition that its value depends upon its |
12 | content and not its form. The term does not include fabricated precious metal that has been |
13 | processed or manufactured for some one or more specific and customary industrial, professional, |
14 | or artistic uses; |
15 | (24) Hydroelectric power-generation equipment, which includes, but is not limited to, |
16 | turbines, generators, switchgear, controls, monitoring equipment, circuit breakers, transformers, |
17 | protective relaying, bus bars, cables, connections, trash racks, headgates, and conduits. The |
18 | hydroelectric power-generation equipment must have been purchased after July 1, 1979, and |
19 | acquired or used by a person or corporation who or that owns or leases a dam and utilizes the |
20 | equipment to generate hydroelectric power; |
21 | (25) Subject to authorization by formal action of the council of any city or town, any real |
22 | or personal property owned by, held in trust for, or leased to an organization incorporated under |
23 | chapter 6 of title 7, as amended, or an organization meeting the definition of "charitable trust" set |
24 | out in § 18-9-4, as amended, or an organization incorporated under the not-for-profits statutes of |
25 | another state or the District of Columbia, the purpose of which is the conserving of open space, as |
26 | that term is defined in chapter 36 of title 45, as amended, provided the property is used exclusively |
27 | for the purposes of the organization; |
28 | (26) Tangible personal property, the primary function of which is the recycling, reuse, or |
29 | recovery of materials (other than precious metals, as defined in § 44-18-30(24)(ii) and (iii)), from, |
30 | or the treatment of "hazardous wastes," as defined in § 23-19.1-4, where the "hazardous wastes" |
31 | are generated primarily by the same taxpayer and where the personal property is located at, in, or |
32 | adjacent to a generating facility of the taxpayer. The taxpayer may, but need not, procure an order |
33 | from the director of the department of environmental management certifying that the tangible |
34 | personal property has this function, which order effects a conclusive presumption that the tangible |
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1 | personal property qualifies for the exemption under this subdivision. If any information relating to |
2 | secret processes or methods of manufacture, production, or treatment is disclosed to the department |
3 | of environmental management only to procure an order, and is a "trade secret" as defined in § 28- |
4 | 21-10(b), it shall not be open to public inspection or publicly disclosed unless disclosure is |
5 | otherwise required under chapter 21 of title 28 or chapter 24.4 of title 23; |
6 | (27) Motorboats as defined in § 46-22-2 for which the annual fee required in § 46-22-4 has |
7 | been paid; |
8 | (28) Real and personal property of the Providence Performing Arts Center, a non-business |
9 | corporation as of December 31, 1986; |
10 | (29) Tangible personal property owned by, and used exclusively for the purposes of, any |
11 | religious organization located in the city of Cranston; |
12 | (30) Real and personal property of the Travelers Aid Society of Rhode Island, a nonprofit |
13 | corporation, the Union Mall Real Estate Corporation, and any limited partnership or limited liability |
14 | company that is formed in connection with, or to facilitate the acquisition of, the Providence YMCA |
15 | Building; |
16 | (31) Real and personal property of Meeting Street Center or MSC Realty, Inc., both not- |
17 | for-profit Rhode Island corporations, and any other corporation, limited partnership, or limited |
18 | liability company that is formed in connection with, or to facilitate the acquisition of, the properties |
19 | designated as the Meeting Street National Center of Excellence on Eddy Street in Providence, |
20 | Rhode Island; |
21 | (32) The buildings, personal property, and land upon which the buildings stand, located on |
22 | Pomham Island, East Providence, currently identified as Assessor's Map 211, Block 01, Parcel |
23 | 001.00, that consists of approximately twenty-one thousand three hundred (21,300) square feet and |
24 | is located approximately eight hundred sixty feet (860'), more or less, from the shore, and limited |
25 | exclusively to these said buildings, personal estate and land, provided that said property is owned |
26 | by a qualified 501(c)(3) organization, such as the American Lighthouse Foundation, and is used |
27 | exclusively for a lighthouse; |
28 | (33) The Stadium Theatre Performing Arts Centre building located in Monument Square, |
29 | Woonsocket, Rhode Island, so long as said Stadium Theatre Performing Arts Center is owned by |
30 | the Stadium Theatre Foundation, a Rhode Island nonprofit corporation; |
31 | (34) Real and tangible personal property of St. Mary Academy -- Bay View, located in East |
32 | Providence, Rhode Island; |
33 | (35) Real and personal property of East Bay Community Action Program and its |
34 | predecessor, Self Help, Inc; provided, that the organization is qualified as a tax-exempt corporation |
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1 | under § 501(c)(3) of the United States Internal Revenue Code; |
2 | (36) Real and personal property located within the city of East Providence of the Columbus |
3 | Club of East Providence, a Rhode Island charitable nonprofit corporation; |
4 | (37) Real and personal property located within the city of East Providence of the Columbus |
5 | Club of Barrington, a Rhode Island charitable nonprofit corporation; |
6 | (38) Real and personal property located within the city of East Providence of Lodge 2337 |
7 | BPO Elks, a Rhode Island nonprofit corporation; |
8 | (39) Real and personal property located within the city of East Providence of the St. |
9 | Andrews Lodge No. 39, a Rhode Island charitable nonprofit corporation; |
10 | (40) Real and personal property located within the city of East Providence of the Trustees |
11 | of Methodist Health and Welfare service a/k/a United Methodist Elder Care, a Rhode Island |
12 | nonprofit corporation; |
13 | (41) Real and personal property located on the first floor of 90 Leonard Avenue within the |
14 | city of East Providence of the Zion Gospel Temple, Inc., a religious nonprofit corporation; |
15 | (42) Real and personal property located within the city of East Providence of the Cape |
16 | Verdean Museum Exhibit, a Rhode Island nonprofit corporation; |
17 | (43) The real and personal property owned by a qualified 501(c)(3) organization that is |
18 | affiliated and in good standing with a national, congressionally chartered organization and thereby |
19 | adheres to that organization's standards and provides activities designed for recreational, |
20 | educational, and character building purposes for children from ages six (6) years to seventeen (17) |
21 | years; |
22 | (44) Real and personal property of the Rhode Island Philharmonic Orchestra and Music |
23 | School; provided, that the organization is qualified as a tax-exempt corporation under § 501(c)(3) |
24 | of the United States Internal Revenue Code; |
25 | (45) The real and personal property located within the town of West Warwick at 211 |
26 | Cowesett Avenue, Plat 29-Lot 25, which consists of approximately twenty-eight thousand seven |
27 | hundred fifty (28,750) square feet and is owned by the Station Fire Memorial Foundation of East |
28 | Greenwich, a Rhode Island nonprofit corporation; |
29 | (46) Real and personal property of the Comprehensive Community Action Program, a |
30 | qualified tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code; |
31 | (47) Real and personal property located at 52 Plain Street, within the city of Pawtucket of |
32 | the Pawtucket Youth Soccer Association, a Rhode Island nonprofit corporation; |
33 | (48) Renewable energy resources, as defined in § 39-26-5, used in residential systems and |
34 | associated equipment used therewith in service after December 31, 2015; |
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1 | (49) Renewable energy resources, as defined in § 39-26-5, if employed by a manufacturer, |
2 | as defined in subsection (a) of this section, shall be exempt from taxation in accordance with |
3 | subsection (a) of this section; |
4 | (50) Real and personal property located at 415 Tower Hill Road within the town of North |
5 | Kingstown, of South County Community Action, Inc., a qualified tax-exempt corporation under § |
6 | 501(c)(3) of the United States Internal Revenue Code; |
7 | (51) As an effort to promote business growth, tangible business or personal property, in |
8 | whole or in part, within the town of Charlestown's community limits, subject to authorization by |
9 | formal action of the town council of the town of Charlestown; |
10 | (52) All real and personal property located at 1300 Frenchtown Road, within the town of |
11 | East Greenwich, identified as assessor's map 027, plat 019, lot 071, and known as the New England |
12 | Wireless and Steam Museum, Inc., a qualified tax-exempt corporation under § 501(c)(3) of the |
13 | United States Internal Revenue Code; |
14 | (53) Real and tangible personal property of Mount Saint Charles Academy located within |
15 | the city of Woonsocket, specifically identified as the following assessor's plats and lots: Logee |
16 | Street, plat 23, lot 62, Logee Street, plat 24, lots 304 and 305; Welles Street, plat 23, lot 310; |
17 | Monroe Street, plat 23, lot 312; and Roberge Avenue, plat 24, lot 47; |
18 | (54) Real and tangible personal property of Steere House, a Rhode Island nonprofit |
19 | corporation, located in Providence, Rhode Island; |
20 | (55) Real and personal property located within the town of West Warwick of Tides Family |
21 | Services, Inc., a Rhode Island nonprofit corporation; |
22 | (56) Real and personal property of Tides Family Services, Inc., a Rhode Island nonprofit |
23 | corporation, located in the city of Pawtucket at 242 Dexter Street, plat 44, lot 444; |
24 | (57) Real and personal property located within the town of Middletown of Lucy's Hearth, |
25 | a Rhode Island nonprofit corporation; |
26 | (58) Real and tangible personal property of Habitat for Humanity of Rhode Island--Greater |
27 | Providence, Inc., a Rhode Island nonprofit corporation, located in Providence, Rhode Island; |
28 | (59) Real and personal property of the Artic Playhouse, a Rhode Island nonprofit |
29 | corporation, located in the town of West Warwick at 1249 Main Street; |
30 | (60) Real and personal property located at 321 Main Street, within the town of South |
31 | Kingstown, of the Contemporary Theatre Company, a qualified, tax-exempt corporation under § |
32 | 501(c)(3) of the United States Internal Revenue Code; |
33 | (61) Real and personal property of The Samaritans, Inc., a Rhode Island nonprofit § |
34 | 501(c)(3) corporation located at 67 Park Place, Pawtucket, Rhode Island, to the extent the city |
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1 | council of Pawtucket may from time to time determine; |
2 | (62) Real and personal property of North Kingstown, Exeter Animal Protection League, |
3 | Inc., dba "Pet Refuge," 500 Stony Lane, a Rhode Island nonprofit corporation, located in North |
4 | Kingstown, Rhode Island; |
5 | (63) Real and personal property located within the city of East Providence of Foster |
6 | Forward (formerly the Rhode Island Foster Parents Association), a Rhode Island charitable |
7 | nonprofit corporation; |
8 | (64) Real and personal property located at 54 Kelly Avenue within the town of East |
9 | Providence, of the Associated Radio Amateurs of Southern New England, a Rhode Island nonprofit |
10 | corporation; |
11 | (65) Real and tangible personal property of Providence Country Day School, a Rhode |
12 | Island nonprofit corporation, located in East Providence, Rhode Island and further identified as plat |
13 | 406, block 6, lot 6, and plat 506, block 1, lot 8; |
14 | (66) As an effort to promote business growth, tangible business or personal property, in |
15 | whole or in part, within the town of Bristol's community limits, subject to authorization by formal |
16 | action of the town council of the town of Bristol; |
17 | (67) Real and tangible personal property of the Heritage Harbor Foundation, a Rhode |
18 | Island nonprofit corporation, located at 1445 Wampanoag Trail, Suites 103 and 201, within the city |
19 | of East Providence; |
20 | (68) Real property of Ocean State Community Wellness, Inc., a qualified tax-exempt |
21 | corporation under § 501(c)(3) of the United States Internal Revenue Code, located in North |
22 | Kingstown, Rhode Island, with a physical address of 7450 Post Road, and further identified as plat |
23 | 108, lot 83; |
24 | (69) Real and tangible personal property of St. John Baptist De La Salle Institute, d/b/a La |
25 | Salle Academy, a Rhode Island domestic nonprofit corporation, located in Providence, Rhode |
26 | Island denominated at the time this subsection was adopted as Plat 83 Lot 276 by the tax assessor |
27 | for the city of Providence comprising approximately 26.08 acres of land along with all buildings |
28 | and improvements that have been or may be made; |
29 | (70) Real and tangible personal property of The Providence Community Health Centers, |
30 | Inc., a Rhode Island domestic nonprofit corporation, located in Providence, Rhode Island; and |
31 | (71) In the city of Central Falls and the city of Pawtucket, real property and tangible |
32 | personal property located on or in the premise acquired or leased by a railroad entity and for the |
33 | purpose of providing boarding and disembarking of railroad passengers and the supporting |
34 | passenger railroad operations and services. For the purpose of this section, a railroad entity shall be |
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1 | any incorporated entity that has been duly authorized by the Rhode Island public utilities |
2 | commission to provide passenger railroad services. |
3 | (b) Except as provided below, when a city or town taxes a for-profit hospital facility, the |
4 | value of its real property shall be the value determined by the most recent full revaluation or |
5 | statistical property update performed by the city or town; provided, however, in the year a nonprofit |
6 | hospital facility converts to or otherwise becomes a for-profit hospital facility, or a for-profit |
7 | hospital facility is initially established, the value of the real property and personal property of the |
8 | for-profit hospital facility shall be determined by a valuation performed by the assessor for the |
9 | purpose of determining an initial assessed value of real and personal property, not previously taxed |
10 | by the city or town, as of the most recent date of assessment pursuant to § 44-5-1, subject to a right |
11 | of appeal by the for-profit hospital facility which shall be made to the city or town tax assessor with |
12 | a direct appeal from an adverse decision to the Rhode Island superior court business calendar. |
13 | A "for-profit hospital facility" includes all real and personal property affiliated with any |
14 | hospital as identified in an application filed pursuant to chapter 17 or 17.14 of title 23. |
15 | Notwithstanding the above, a city or town may enter into a stabilization agreement with a for-profit |
16 | hospital facility under § 44-3-9 or other laws specific to the particular city or town relating to |
17 | stabilization agreements. In a year in which a nonprofit hospital facility converts to, or otherwise |
18 | becomes, a for-profit hospital facility, or a for-profit hospital facility is otherwise established, in |
19 | that year only the amount levied by the city or town and/or the amount payable under the |
20 | stabilization agreement for that year related to the for-profit hospital facility shall not be counted |
21 | towards determining the maximum tax levy permitted under § 44-5-2. |
22 | (c) Authorization to tax certain nonprofit properties within cities and towns exempt by |
23 | charter, general, public, or special law. |
24 | Notwithstanding any charter provision, any other provisions of this section or any other |
25 | provisions of the general, public, or special laws to the contrary, each city and town may impose a |
26 | property tax on the following real and/or personal property owned, leased or operated, in whole or |
27 | in part, by any nonprofit institution of higher education as follows: |
28 | (1) Any and all vacant lots, improved or unimproved, within the city or town, and/or such |
29 | portion of a lot that is vacant; |
30 | (2) Any and all lots, buildings, structures or other property used for transient, overnight or |
31 | permanent parking of motor vehicles, excepting any portion used wholly and exclusively for |
32 | parking of vehicles owned or leased by the nonprofit entity and used for purposes of operating and |
33 | maintaining the nonprofit entity owned or leased vehicle parking; |
34 | (3) Any and all real property owned, leased or operated within the city or town, or any |
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1 | portion thereof, regardless of whether or not the net income from the said property, or any portion |
2 | thereof, is applied to, shall be used for, supports, or financially maintains the purposes for which |
3 | the nonprofits were incorporated, as set forth in their respective charters; |
4 | (4) When a city or town taxes any property and or portion of a property as set forth in |
5 | subsections (c)(1) and (c)(2) of this section, the value of the taxable real property shall be |
6 | determined by the most recent full revaluation or statistical property update performed by the city |
7 | or town; provided, however, in the year any real property is first taxed, the value of the property |
8 | shall be determined by a valuation performed by the assessor for the purpose of determining an |
9 | initial assessed value of real property not previously taxed by the city or town, as of the most recent |
10 | date of assessment pursuant to § 44-5-1, subject to any and all rights to appeal under § 44-5-26; |
11 | and |
12 | (5) When a city or town taxes any property and or portion of a property pursuant to |
13 | subsection (c)(3) of this section, such tax may be assessed and imposed effective December 31 in |
14 | the year the next update or valuation is performed in accordance with § 44-5-11.6 after the effective |
15 | date of this subsection, subject to any and all rights to appeal under § 44-5-26. |
16 | (6) As used in this subsection, "nonprofit institution of higher education" means any private |
17 | institution, including colleges and universities, engaged primarily in education beyond the high |
18 | school level. |
19 | SECTION 3. Provisions of nonprofit charters, general and special laws granted by the |
20 | general assembly are hereby replaced, and/or amended, retroactively and prospectively, to the |
21 | extent of any inconsistency with § 44-3-3(c). |
22 | SECTION 4. 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 | |
*** | |
1 | This act would place limitations on the tax-exempt real and personal property a private |
2 | nonprofit college or university may hold. |
3 | This act would take effect upon passage. |
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