SECTION 1. Chapter 44-4 of the General Laws entitled "Situs and Ownership of Taxable Property" is hereby amended by adding thereto the following section:

44-4-4.2. Leasehold improvements taxed to tenant of quasi-public corporation.- Commencing with taxes assessed on December 31, 2001, whenever real property is owned by a quasi-public corporation and leased to a tenant which is engaged in any business for profit, and such property is located at an airport terminal building with more than ten thousand (10,000) air carrier aircraft operations annually, any tax on leasehold improvements shall be paid by the tenant, who, for the purposes of taxation, shall be deemed to be the owner of any such leasehold improvements, regardless of whether the improvements become state property, unless the improvements or the tenant or subtenant are otherwise exempt from taxation.

SECTION 2. This act shall take effect upon passage and shall apply to taxes assessed commencing on December 31, 2001. If any court of competent jurisdiction shall adjudge to be invalid or unconstitutional the application of section 1 of this act to periods prior to the enactment of this act, this act shall nevertheless be effective for dates of assessment occurring on or after passage of this act.

SECTION 2. This act shall take effect July 1, 2002.