2022 -- S 2600

========

LC003635

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

____________

A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

     

     Introduced By: Senators Mack, Bell, Anderson, Calkin, Mendes, Euer, Kallman,
Quezada, and Sosnowski

     Date Introduced: March 10, 2022

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

1

     SECTION 1. The general assembly finds as follows:

2

     WHEREAS, In the 1890s, the general assembly enacted numerous charters incorporating

3

nonprofit hospitals throughout the state; and

4

     WHEREAS, In the 1900s, the general assembly enacted numerous charters incorporating

5

nonprofit colleges and universities for specific educational purposes set forth in the charters; and

6

     WHEREAS, The corporate charters of colleges and universities exempted from taxation

7

property owned by said educational institutions, provided that the real estate "not used for the

8

corporate purposes shall not be so exempt;" and

9

     WHEREAS, The corporate charters of the hospitals, in general, authorizes them to erect,

10

support and maintain facilities for the non-business purposes for which the entities are incorporated,

11

and require that the corporations be managed by their boards of directors, which boards are defined

12

and delineated in the legislative corporate charters; and

13

     WHEREAS, Pursuant to the legislatively-granted charters, the nonprofit hospitals in the

14

state have enjoyed exemptions from taxation on all real and personal property owned by the

15

hospitals, pursuant to provisions of the legislation stating that: "the property and estate of said

16

corporation, both real and personal, shall not at any time be liable to be assessed in the

17

apportionment of any state or town tax;" and

18

     WHEREAS, In the absence of an express statutory definition to the contrary, the state

19

supreme court has held that the language in the hospital charters affords tax exempt status to all

 

1

hospital owned property as long as the net income from the property is devoted to the general uses

2

of the hospital, regardless of whether the property is used "wholly" or "exclusively" for the missions

3

and functions of a hospital; and

4

     WHEREAS, The state supreme court has further indicated that issues regarding statutory

5

tax exemptions for chartered and nonprofit organizations implicate public policy decisions to be

6

addressed by the general assembly; and

7

     WHEREAS, The language of chartered colleges and universities and nonprofit hospitals

8

has never been amended to remove the tax exemptions provided by the legislation; and

9

     WHEREAS, The real and personal property held by the chartered entities has increased

10

exponentially, far exceeding what the general assembly would have contemplated when the charters

11

were enacted over a century ago; and

12

     WHEREAS, Chartered colleges, universities and hospitals hold property for use by and for

13

commercial, for-profit ventures such as eating establishments, shopping centers, parking garages,

14

and other operations not directly related to the provision of education or for hospital medical care;

15

and

16

     WHEREAS, Nonprofit hospitals now expend funds on mass marketing campaigns, large

17

network "holding" and management corporations which are comprised of a board of directors that

18

oversees each hospital and legislatively delineated hospital board, and which conduct business on

19

behalf of not only the hospitals, but also on behalf of physicians’ groups, laboratories, imaging

20

centers and other matters not related to the acquisition and maintenance of a hospital; and

21

     WHEREAS, The tax exemptions afforded to all property owned by chartered nonprofit

22

colleges, universities and hospitals, regardless of their uses, imposes a significant burden on the

23

cities and towns in which they are located, and the taxpaying residents of such cities and towns;

24

and

25

     THEREFORE, The general assembly deems it appropriate to place limitations on the tax

26

exempt real and personal property a nonprofit college, university or hospital may hold.

27

     SECTION 2. Section 44-3-3 of the General Laws in Chapter 44-3 entitled "Property

28

Subject to Taxation" is hereby amended to read as follows:

29

     44-3-3. Property exempt. [Effective January 1, 2022.]

30

     (a) The following property is exempt from taxation:

31

     (1) Property belonging to the state, except as provided in § 44-4-4.1;

32

     (2) Lands ceded or belonging to the United States;

33

     (3) Bonds and other securities issued and exempted from taxation by the government of

34

the United States or of this state;

 

LC003635 - Page 2 of 15

1

     (4) Real estate, used exclusively for military purposes, owned by chartered or incorporated

2

organizations approved by the adjutant general and composed of members of the national guard,

3

the naval militia, or the independent, chartered-military organizations;

4

     (5) Buildings for free public schools, buildings for religious worship, and the land upon

5

which they stand and immediately surrounding them, to an extent not exceeding five (5) acres so

6

far as the buildings and land are occupied and used exclusively for religious or educational

7

purposes;

8

     (6) Dwellings houses and the land on which they stand, not exceeding one acre in size, or

9

the minimum lot size for zone in which the dwelling house is located, whichever is the greater,

10

owned by, or held in trust for, any religious organization and actually used by its officiating clergy;

11

provided, further, that in the town of Charlestown, where the property previously described in this

12

paragraph is exempt in total, along with dwelling houses and the land on which they stand in

13

Charlestown, not exceeding one acre in size, or the minimum lot size for zone in which the dwelling

14

house is located, whichever is the greater, owned by, or held in trust for, any religious organization

15

and actually used by its officiating clergy, or used as a convent, nunnery, or retreat center by its

16

religious order;

17

     (7) Intangible personal property owned by, or held in trust for, any religious or charitable

18

organization, if the principal or income is used or appropriated for religious or charitable purposes;

19

     (8) Buildings and personal estate owned by any corporation used for a school, academy, or

20

seminary of learning, except for a nonprofit institution of higher education and of any incorporated

21

public charitable institution, and the land upon which the buildings stand and immediately

22

surrounding them to an extent not exceeding one acre, so far as they are used exclusively for

23

educational purposes, but no property or estate whatever is hereafter exempt from taxation in any

24

case where any part of its income or profits, or of the business carried on there, is divided among

25

its owners or stockholders; provided, however, that unless any private nonprofit corporation

26

organized as a college or university located in the town of Smithfield reaches a memorandum of

27

agreement with the town of Smithfield, the town of Smithfield shall bill the actual costs for police,

28

fire, and rescue services supplied, unless otherwise reimbursed, to said corporation commencing

29

March 1, 2014;

30

     (9) Estates, persons, and families of the president and professors for the time being of

31

Brown University for not more than ten thousand dollars ($10,000) for each officer, the officer's

32

estate, person, and family included, but only to the extent that any person had claimed and utilized

33

the exemption prior to, and for a period ending, either on or after December 31, 1996;

34

     (10) Property especially exempt by charter unless the exemption has been waived in whole

 

LC003635 - Page 3 of 15

1

or in part, and except as provided in subsection (c) of this section;

2

     (11) Lots of land exclusively for burial grounds;

3

     (12) Property, real and personal, held for, or by, an incorporated library, society, or any

4

free public library, or any free public library society, so far as the property is held exclusively for

5

library purposes, or for the aid or support of the aged poor, or poor friendless children, or the poor

6

generally, or for a nonprofit hospital for the sick or disabled;

7

     (13) Real or personal estate belonging to, or held in trust for, the benefit of incorporated

8

organizations of veterans of any war in which the United States has been engaged, the parent body

9

of which has been incorporated by act of Congress, to the extent of four hundred thousand dollars

10

($400,000) if actually used and occupied by the association; provided, that the city council of the

11

city of Cranston may by ordinance exempt the real or personal estate as previously described in

12

this subdivision located within the city of Cranston to the extent of five hundred thousand dollars

13

($500,000);

14

     (14) Property, real and personal, held for, or by, the fraternal corporation, association, or

15

body created to build and maintain a building or buildings for its meetings or the meetings of the

16

general assembly of its members, or subordinate bodies of the fraternity, and for the

17

accommodation of other fraternal bodies or associations, the entire net income of which real and

18

personal property is exclusively applied or to be used to build, furnish, and maintain an asylum or

19

asylums, a home or homes, a school or schools, for the free education or relief of the members of

20

the fraternity, or the relief, support, and care of worthy and indigent members of the fraternity, their

21

wives, widows, or orphans, and any fund given or held for the purpose of public education,

22

almshouses, and the land and buildings used in connection therewith;

23

     (15) Real estate and personal property of any incorporated volunteer fire engine company

24

or incorporated volunteer ambulance or rescue corps in active service;

25

     (16) The estate of any person who, in the judgment of the assessors, is unable from infirmity

26

or poverty to pay the tax; provided, that in the towns of Burrillville and West Greenwich, the tax

27

shall constitute a lien for five (5) years on the property where the owner is entitled to the exemption.

28

At the expiration of five (5) years, the lien shall be abated in full. Provided, if the property is sold

29

or conveyed, or if debt secured by the property is refinanced during the five-year (5) period, the

30

lien immediately becomes due and payable; any person claiming the exemption aggrieved by an

31

adverse decision of an assessor shall appeal the decision to the local board of tax review and

32

thereafter according to the provisions of § 44-5-26;

33

     (17) Household furniture and family stores of a housekeeper in the whole, including

34

clothing, bedding, and other white goods, books, and all other tangible personal property items that

 

LC003635 - Page 4 of 15

1

are common to the normal household;

2

     (18) Improvements made to any real property to provide a shelter and fallout protection

3

from nuclear radiation, to the amount of one thousand five hundred dollars ($1,500); provided, that

4

the improvements meet applicable standards for shelter construction established, from time to time,

5

by the Rhode Island emergency management agency. The improvements are deemed to comply

6

with the provisions of any building code or ordinance with respect to the materials or the methods

7

of construction used and any shelter or its establishment is deemed to comply with the provisions

8

of any zoning code or ordinance;

9

     (19) Aircraft for which the fee required by § 1-4-6 has been paid to the tax administrator;

10

     (20) Manufacturer's inventory.

11

     (i) For the purposes of §§ 44-4-10, 44-5-3, 44-5-20, and 44-5-38, a person is deemed to be

12

a manufacturer within a city or town within this state if that person uses any premises, room, or

13

place in it primarily for the purpose of transforming raw materials into a finished product for trade

14

through any or all of the following operations: adapting, altering, finishing, making, and

15

ornamenting; provided, that public utilities; non-regulated power producers commencing

16

commercial operation by selling electricity at retail or taking title to generating facilities on or after

17

July 1, 1997; building and construction contractors; warehousing operations, including distribution

18

bases or outlets of out-of-state manufacturers; and fabricating processes incidental to warehousing

19

or distribution of raw materials, such as alteration of stock for the convenience of a customer; are

20

excluded from this definition;

21

     (ii) For the purposes of this section and §§ 44-4-10 and 44-5-38, the term "manufacturer's

22

inventory," or any similar term, means and includes the manufacturer's raw materials, the

23

manufacturer's work in process, and finished products manufactured by the manufacturer in this

24

state, and not sold, leased, or traded by the manufacturer or its title or right to possession divested;

25

provided, that the term does not include any finished products held by the manufacturer in any retail

26

store or other similar selling place operated by the manufacturer whether or not the retail

27

establishment is located in the same building in which the manufacturer operates the manufacturing

28

plant;

29

     (iii) For the purpose of § 44-11-2, a "manufacturer" is a person whose principal business

30

in this state consists of transforming raw materials into a finished product for trade through any or

31

all of the operations described in paragraph (i) of this subdivision. A person will be deemed to be

32

principally engaged if the gross receipts that person derived from the manufacturing operations in

33

this state during the calendar year or fiscal year mentioned in § 44-11-1 amounted to more than

34

fifty percent (50%) of the total gross receipts that person derived from all the business activities in

 

LC003635 - Page 5 of 15

1

which that person engaged in this state during the taxable year. For the purpose of computing the

2

percentage, gross receipts derived by a manufacturer from the sale, lease, or rental of finished

3

products manufactured by the manufacturer in this state, even though the manufacturer's store or

4

other selling place may be at a different location from the location of the manufacturer's

5

manufacturing plant in this state, are deemed to have been derived from manufacturing;

6

     (iv) Within the meaning of the preceding paragraphs of this subdivision, the term

7

"manufacturer" also includes persons who are principally engaged in any of the general activities

8

coded and listed as establishments engaged in manufacturing in the Standard Industrial

9

Classification Manual prepared by the Technical Committee on Industrial Classification, Office of

10

Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as

11

revised from time to time, but eliminating as manufacturers those persons, who, because of their

12

limited type of manufacturing activities, are classified in the manual as falling within the trade

13

rather than an industrial classification of manufacturers. Among those thus eliminated, and

14

accordingly also excluded as manufacturers within the meaning of this paragraph, are persons

15

primarily engaged in selling, to the general public, products produced on the premises from which

16

they are sold, such as neighborhood bakeries, candy stores, ice cream parlors, shade shops, and

17

custom tailors, except, that a person who manufactures bakery products for sale primarily for home

18

delivery, or through one or more non-baking retail outlets, and whether or not retail outlets are

19

operated by the person, is a manufacturer within the meaning of this paragraph;

20

     (v) The term "Person" means and includes, as appropriate, a person, partnership, or

21

corporation; and

22

     (vi) The department of revenue shall provide to the local assessors any assistance that is

23

necessary in determining the proper application of the definitions in this subdivision;

24

     (21) Real and tangible personal property acquired to provide a treatment facility used

25

primarily to control the pollution or contamination of the waters or the air of the state, as defined

26

in chapter 12 of title 46 and chapter 25 of title 23, respectively, the facility having been constructed,

27

reconstructed, erected, installed, or acquired in furtherance of federal or state requirements or

28

standards for the control of water or air pollution or contamination, and certified as approved in an

29

order entered by the director of environmental management. The property is exempt as long as it is

30

operated properly in compliance with the order of approval of the director of environmental

31

management; provided, that any grant of the exemption by the director of environmental

32

management in excess of ten (10) years is approved by the city or town in which the property is

33

situated. This provision applies only to water and air pollution control properties and facilities

34

installed for the treatment of waste waters and air contaminants resulting from industrial

 

LC003635 - Page 6 of 15

1

processing; furthermore, it applies only to water or air pollution control properties and facilities

2

placed in operation for the first time after April 13, 1970;

3

     (22) Manufacturing machinery and equipment acquired or used by a manufacturer after

4

December 31, 1974. Manufacturing machinery and equipment is defined as:

5

     (i) Machinery and equipment used exclusively in the actual manufacture or conversion of

6

raw materials or goods in the process of manufacture by a manufacturer, as defined in subdivision

7

(20), and machinery, fixtures, and equipment used exclusively by a manufacturer for research and

8

development or for quality assurance of its manufactured products;

9

     (ii) Machinery and equipment that is partially used in the actual manufacture or conversion

10

of raw materials or goods in process of manufacture by a manufacturer, as defined in subdivision

11

(20), and machinery, fixtures, and equipment used by a manufacturer for research and development

12

or for quality assurance of its manufactured products, to the extent to which the machinery and

13

equipment is used for the manufacturing processes, research and development, or quality assurance.

14

In the instances where machinery and equipment is used in both manufacturing and/or research and

15

development and/or quality assurance activities and non-manufacturing activities, the assessment

16

on machinery and equipment is prorated by applying the percentage of usage of the equipment for

17

the manufacturing, research and development, and quality-assurance activity to the value of the

18

machinery and equipment for purposes of taxation, and the portion of the value used for

19

manufacturing, research and development, and quality assurance is exempt from taxation. The

20

burden of demonstrating this percentage usage of machinery and equipment for manufacturing and

21

for research and development and/or quality assurance of its manufactured products rests with the

22

manufacturer; and

23

     (iii) Machinery and equipment described in §§ 44-18-30(7) and 44-18-30(22) that was

24

purchased after July 1, 1997; provided that the city or town council of the city or town in which the

25

machinery and equipment is located adopts an ordinance exempting the machinery and equipment

26

from taxation. For purposes of this subsection, city councils and town councils of any municipality

27

may, by ordinance, wholly or partially exempt from taxation the machinery and equipment

28

discussed in this subsection for the period of time established in the ordinance and may, by

29

ordinance, establish the procedures for taxpayers to avail themselves of the benefit of any

30

exemption permitted under this section; provided, that the ordinance does not apply to any

31

machinery or equipment of a business, subsidiary, or any affiliated business that locates or relocates

32

from a city or town in this state to another city or town in the state;

33

     (23) Precious metal bullion, meaning any elementary metal that has been put through a

34

process of melting or refining, and that is in a state or condition that its value depends upon its

 

LC003635 - Page 7 of 15

1

content and not its form. The term does not include fabricated precious metal that has been

2

processed or manufactured for some one or more specific and customary industrial, professional,

3

or artistic uses;

4

     (24) Hydroelectric power-generation equipment, which includes, but is not limited to,

5

turbines, generators, switchgear, controls, monitoring equipment, circuit breakers, transformers,

6

protective relaying, bus bars, cables, connections, trash racks, headgates, and conduits. The

7

hydroelectric power-generation equipment must have been purchased after July 1, 1979, and

8

acquired or used by a person or corporation who or that owns or leases a dam and utilizes the

9

equipment to generate hydroelectric power;

10

     (25) Subject to authorization by formal action of the council of any city or town, any real

11

or personal property owned by, held in trust for, or leased to an organization incorporated under

12

chapter 6 of title 7, as amended, or an organization meeting the definition of "charitable trust" set

13

out in § 18-9-4, as amended, or an organization incorporated under the not-for-profits statutes of

14

another state or the District of Columbia, the purpose of which is the conserving of open space, as

15

that term is defined in chapter 36 of title 45, as amended, provided the property is used exclusively

16

for the purposes of the organization;

17

     (26) Tangible personal property, the primary function of which is the recycling, reuse, or

18

recovery of materials (other than precious metals, as defined in § 44-18-30(24)(ii) and (iii)), from,

19

or the treatment of "hazardous wastes," as defined in § 23-19.1-4, where the "hazardous wastes"

20

are generated primarily by the same taxpayer and where the personal property is located at, in, or

21

adjacent to a generating facility of the taxpayer. The taxpayer may, but need not, procure an order

22

from the director of the department of environmental management certifying that the tangible

23

personal property has this function, which order effects a conclusive presumption that the tangible

24

personal property qualifies for the exemption under this subdivision. If any information relating to

25

secret processes or methods of manufacture, production, or treatment is disclosed to the department

26

of environmental management only to procure an order, and is a "trade secret" as defined in § 28-

27

21-10(b), it shall not be open to public inspection or publicly disclosed unless disclosure is

28

otherwise required under chapter 21 of title 28 or chapter 24.4 of title 23;

29

     (27) Motorboats as defined in § 46-22-2 for which the annual fee required in § 46-22-4 has

30

been paid;

31

     (28) Real and personal property of the Providence Performing Arts Center, a non-business

32

corporation as of December 31, 1986;

33

     (29) Tangible personal property owned by, and used exclusively for the purposes of, any

34

religious organization located in the city of Cranston;

 

LC003635 - Page 8 of 15

1

     (30) Real and personal property of the Travelers Aid Society of Rhode Island, a nonprofit

2

corporation, the Union Mall Real Estate Corporation, and any limited partnership or limited liability

3

company that is formed in connection with, or to facilitate the acquisition of, the Providence YMCA

4

Building;

5

     (31) Real and personal property of Meeting Street Center or MSC Realty, Inc., both not-

6

for-profit Rhode Island corporations, and any other corporation, limited partnership, or limited

7

liability company that is formed in connection with, or to facilitate the acquisition of, the properties

8

designated as the Meeting Street National Center of Excellence on Eddy Street in Providence,

9

Rhode Island;

10

     (32) The buildings, personal property, and land upon which the buildings stand, located on

11

Pomham Island, East Providence, currently identified as Assessor's Map 211, Block 01, Parcel

12

001.00, that consists of approximately twenty-one thousand three hundred (21,300) square feet and

13

is located approximately eight hundred sixty feet (860'), more or less, from the shore, and limited

14

exclusively to these said buildings, personal estate and land, provided that said property is owned

15

by a qualified 501(c)(3) organization, such as the American Lighthouse Foundation, and is used

16

exclusively for a lighthouse;

17

     (33) The Stadium Theatre Performing Arts Centre building located in Monument Square,

18

Woonsocket, Rhode Island, so long as said Stadium Theatre Performing Arts Center is owned by

19

the Stadium Theatre Foundation, a Rhode Island nonprofit corporation;

20

     (34) Real and tangible personal property of St. Mary Academy -- Bay View, located in East

21

Providence, Rhode Island;

22

     (35) Real and personal property of East Bay Community Action Program and its

23

predecessor, Self Help, Inc; provided, that the organization is qualified as a tax-exempt corporation

24

under § 501(c)(3) of the United States Internal Revenue Code;

25

     (36) Real and personal property located within the city of East Providence of the Columbus

26

Club of East Providence, a Rhode Island charitable nonprofit corporation;

27

     (37) Real and personal property located within the city of East Providence of the Columbus

28

Club of Barrington, a Rhode Island charitable nonprofit corporation;

29

     (38) Real and personal property located within the city of East Providence of Lodge 2337

30

BPO Elks, a Rhode Island nonprofit corporation;

31

     (39) Real and personal property located within the city of East Providence of the St.

32

Andrews Lodge No. 39, a Rhode Island charitable nonprofit corporation;

33

     (40) Real and personal property located within the city of East Providence of the Trustees

34

of Methodist Health and Welfare service a/k/a United Methodist Elder Care, a Rhode Island

 

LC003635 - Page 9 of 15

1

nonprofit corporation;

2

     (41) Real and personal property located on the first floor of 90 Leonard Avenue within the

3

city of East Providence of the Zion Gospel Temple, Inc., a religious nonprofit corporation;

4

     (42) Real and personal property located within the city of East Providence of the Cape

5

Verdean Museum Exhibit, a Rhode Island nonprofit corporation;

6

     (43) The real and personal property owned by a qualified 501(c)(3) organization that is

7

affiliated and in good standing with a national, congressionally chartered organization and thereby

8

adheres to that organization's standards and provides activities designed for recreational,

9

educational, and character building purposes for children from ages six (6) years to seventeen (17)

10

years;

11

     (44) Real and personal property of the Rhode Island Philharmonic Orchestra and Music

12

School; provided, that the organization is qualified as a tax-exempt corporation under § 501(c)(3)

13

of the United States Internal Revenue Code;

14

     (45) The real and personal property located within the town of West Warwick at 211

15

Cowesett Avenue, Plat 29-Lot 25, which consists of approximately twenty-eight thousand seven

16

hundred fifty (28,750) square feet and is owned by the Station Fire Memorial Foundation of East

17

Greenwich, a Rhode Island nonprofit corporation;

18

     (46) Real and personal property of the Comprehensive Community Action Program, a

19

qualified tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code;

20

     (47) Real and personal property located at 52 Plain Street, within the city of Pawtucket of

21

the Pawtucket Youth Soccer Association, a Rhode Island nonprofit corporation;

22

     (48) Renewable energy resources, as defined in § 39-26-5, used in residential systems and

23

associated equipment used therewith in service after December 31, 2015;

24

     (49) Renewable energy resources, as defined in § 39-26-5, if employed by a manufacturer,

25

as defined in subsection (a) of this section, shall be exempt from taxation in accordance with

26

subsection (a) of this section;

27

     (50) Real and personal property located at 415 Tower Hill Road within the town of North

28

Kingstown, of South County Community Action, Inc., a qualified tax-exempt corporation under §

29

501(c)(3) of the United States Internal Revenue Code;

30

     (51) As an effort to promote business growth, tangible business or personal property, in

31

whole or in part, within the town of Charlestown's community limits, subject to authorization by

32

formal action of the town council of the town of Charlestown;

33

     (52) All real and personal property located at 1300 Frenchtown Road, within the town of

34

East Greenwich, identified as assessor's map 027, plat 019, lot 071, and known as the New England

 

LC003635 - Page 10 of 15

1

Wireless and Steam Museum, Inc., a qualified tax-exempt corporation under § 501(c)(3) of the

2

United States Internal Revenue Code;

3

     (53) Real and tangible personal property of Mount Saint Charles Academy located within

4

the city of Woonsocket, specifically identified as the following assessor's plats and lots: Logee

5

Street, plat 23, lot 62, Logee Street, plat 24, lots 304 and 305; Welles Street, plat 23, lot 310;

6

Monroe Street, plat 23, lot 312; and Roberge Avenue, plat 24, lot 47;

7

     (54) Real and tangible personal property of Steere House, a Rhode Island nonprofit

8

corporation, located in Providence, Rhode Island;

9

     (55) Real and personal property located within the town of West Warwick of Tides Family

10

Services, Inc., a Rhode Island nonprofit corporation;

11

     (56) Real and personal property of Tides Family Services, Inc., a Rhode Island nonprofit

12

corporation, located in the city of Pawtucket at 242 Dexter Street, plat 44, lot 444;

13

     (57) Real and personal property located within the town of Middletown of Lucy's Hearth,

14

a Rhode Island nonprofit corporation;

15

     (58) Real and tangible personal property of Habitat for Humanity of Rhode Island--Greater

16

Providence, Inc., a Rhode Island nonprofit corporation, located in Providence, Rhode Island;

17

     (59) Real and personal property of the Artic Playhouse, a Rhode Island nonprofit

18

corporation, located in the town of West Warwick at 1249 Main Street;

19

     (60) Real and personal property located at 321 Main Street, within the town of South

20

Kingstown, of the Contemporary Theatre Company, a qualified, tax-exempt corporation under §

21

501(c)(3) of the United States Internal Revenue Code;

22

     (61) Real and personal property of The Samaritans, Inc., a Rhode Island nonprofit §

23

501(c)(3) corporation located at 67 Park Place, Pawtucket, Rhode Island, to the extent the city

24

council of Pawtucket may from time to time determine;

25

     (62) Real and personal property of North Kingstown, Exeter Animal Protection League,

26

Inc., dba "Pet Refuge," 500 Stony Lane, a Rhode Island nonprofit corporation, located in North

27

Kingstown, Rhode Island;

28

     (63) Real and personal property located within the city of East Providence of Foster

29

Forward (formerly the Rhode Island Foster Parents Association), a Rhode Island charitable

30

nonprofit corporation;

31

     (64) Real and personal property located at 54 Kelly Avenue within the town of East

32

Providence, of the Associated Radio Amateurs of Southern New England, a Rhode Island nonprofit

33

corporation;

34

     (65) Real and tangible personal property of Providence Country Day School, a Rhode

 

LC003635 - Page 11 of 15

1

Island nonprofit corporation, located in East Providence, Rhode Island and further identified as plat

2

406, block 6, lot 6, and plat 506, block 1, lot 8;

3

     (66) As an effort to promote business growth, tangible business or personal property, in

4

whole or in part, within the town of Bristol's community limits, subject to authorization by formal

5

action of the town council of the town of Bristol;

6

     (67) Real and tangible personal property of the Heritage Harbor Foundation, a Rhode

7

Island nonprofit corporation, located at 1445 Wampanoag Trail, Suites 103 and 201, within the city

8

of East Providence;

9

     (68) Real property of Ocean State Community Wellness, Inc., a qualified tax-exempt

10

corporation under § 501(c)(3) of the United States Internal Revenue Code, located in North

11

Kingstown, Rhode Island, with a physical address of 7450 Post Road, and further identified as plat

12

108, lot 83;

13

     (69) Real and tangible personal property of St. John Baptist De La Salle Institute, d/b/a La

14

Salle Academy, a Rhode Island domestic nonprofit corporation, located in Providence, Rhode

15

Island denominated at the time this subsection was adopted as Plat 83 Lot 276 by the tax assessor

16

for the city of Providence comprising approximately 26.08 acres of land along with all buildings

17

and improvements that have been or may be made;

18

     (70) Real and tangible personal property of The Providence Community Health Centers,

19

Inc., a Rhode Island domestic nonprofit corporation, located in Providence, Rhode Island; and

20

     (71) In the city of Central Falls and the city of Pawtucket, real property and tangible

21

personal property located on or in the premise acquired or leased by a railroad entity and for the

22

purpose of providing boarding and disembarking of railroad passengers and the supporting

23

passenger railroad operations and services. For the purpose of this section, a railroad entity shall be

24

any incorporated entity that has been duly authorized by the Rhode Island public utilities

25

commission to provide passenger railroad services.

26

     (b) Except as provided below, when a city or town taxes a for-profit hospital facility, the

27

value of its real property shall be the value determined by the most recent full revaluation or

28

statistical property update performed by the city or town; provided, however, in the year a nonprofit

29

hospital facility converts to or otherwise becomes a for-profit hospital facility, or a for-profit

30

hospital facility is initially established, the value of the real property and personal property of the

31

for-profit hospital facility shall be determined by a valuation performed by the assessor for the

32

purpose of determining an initial assessed value of real and personal property, not previously taxed

33

by the city or town, as of the most recent date of assessment pursuant to § 44-5-1, subject to a right

34

of appeal by the for-profit hospital facility which shall be made to the city or town tax assessor with

 

LC003635 - Page 12 of 15

1

a direct appeal from an adverse decision to the Rhode Island superior court business calendar.

2

     A "for-profit hospital facility" includes all real and personal property affiliated with any

3

hospital as identified in an application filed pursuant to chapter 17 or 17.14 of title 23.

4

Notwithstanding the above, a city or town may enter into a stabilization agreement with a for-profit

5

hospital facility under § 44-3-9 or other laws specific to the particular city or town relating to

6

stabilization agreements. In a year in which a nonprofit hospital facility converts to, or otherwise

7

becomes, a for-profit hospital facility, or a for-profit hospital facility is otherwise established, in

8

that year only the amount levied by the city or town and/or the amount payable under the

9

stabilization agreement for that year related to the for-profit hospital facility shall not be counted

10

towards determining the maximum tax levy permitted under § 44-5-2.

11

     (c) Authorization to tax certain nonprofit properties within cities and towns exempt by

12

charter, general, public, or special law.

13

     (1) Notwithstanding any charter provision, any other provisions of this section or any other

14

provision of the general, public, or special law to the contrary, each city and town may impose a

15

property tax on the following real and/or personal property owned, leased or operated in whole or

16

in part by any nonprofit institution of higher education or hospital:

17

     (i) Any and all vacant lots, improved or unimproved, within the city or town, and/or such

18

portion of a lot that is vacant; and

19

     (ii) Any and all lots, buildings, structures or other property used for transient, overnight or

20

permanent parking of motor vehicles, excepting any portion used wholly and exclusively for

21

parking of vehicles owned or leased by the nonprofit entity and used for purposes of operating and

22

maintaining the nonprofit entity owned or leased vehicle parking; and

23

     (iii) Any and all real property owned, leased or operated within the city or town, or any

24

portion thereof, that is not wholly and exclusively utilized for the purposes for which the nonprofits

25

were incorporated, as set forth in their respective charters, or applicable provisions of the general,

26

public, or special laws, regardless of whether or not the net income from the said property, or any

27

portion thereof, is applied to, shall be used for, supports, or financially maintains the purposes for

28

which the nonprofits were incorporated, as set forth in their respective charters.

29

     (iv) When a city or town taxes any property and or portion of a property as set forth in

30

subsections (c)(i) and (c)(ii) of this section, the value of the taxable real property shall be

31

determined by the most recent full revaluation or statistical property update performed by the city

32

or town; provided, however, in the year any real property is first taxed, the value of the property

33

shall be determined by a valuation performed by the assessor for the purpose of determining an

34

initial assessed value of real property not previously taxed by the city or town, as of the most recent

 

LC003635 - Page 13 of 15

1

date of assessment pursuant to § 44-5-1, subject to any and all rights to appeal under § 44-5-26.

2

     (v) When a city or town taxes any property and or portion of a property pursuant to

3

subsection (c)(iii) of this section, such tax may be assessed and imposed effective December 31 in

4

the year the next update or valuation is performed in accordance with § 44-5-11.6 after the effective

5

date of this section, subject to any and all rights to appeal under § 44-5-26.

6

     (vi) As used in this section, "nonprofit institution of higher education" means any

7

institution engaged primarily in education beyond the high school level, and "nonprofit hospital"

8

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

9

medical, surgical, or psychiatric care and treatment.

10

     SECTION 3. Provisions of nonprofit charters, general and special laws granted by the

11

general assembly are hereby replaced, and/or amended, retroactively and prospectively, to the

12

extent inconsistent with § 44-3-3(c).

13

     SECTION 4. This act shall take effect upon passage.

========

LC003635

========

 

LC003635 - Page 14 of 15

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 nonprofit

2

college, university or hospital may hold.

3

     This act would take effect upon passage.

========

LC003635

========

 

LC003635 - Page 15 of 15