Title 44
Taxation

Chapter 5.3
Statewide Tangible Property Tax Exemption

§ 44-5.3-2. Reimbursement of lost tax revenue.

(a) Beginning in fiscal year 2025 and for each fiscal year thereafter, cities, towns, and fire districts shall receive reimbursements, as set forth in this section, from state general revenues for lost tax revenues due to the reduction of the tangible property tax resulting from the statewide exemption set forth in § 44-5.3-1.

(b) Beginning in fiscal year 2025, and for each fiscal year thereafter, cities, towns, and fire districts shall receive a reimbursement equal to the tangible property tax revenues lost for the assessment date of December 31, 2023, due to application of the statewide exemption amount set forth in § 44-5.3-1, which shall be calculated by dividing the tangible personal property assessment for the assessment date of December 31, 2023, lost due to the statewide exemption amount set forth in § 44-5.3-1 by one thousand (1,000) multiplied by the tangible personal property tax rate for the assessment date of December 31, 2023. If such lost assessment is unknown, cities, towns, and fire districts shall utilize internal policies and procedures in place as of December 31, 2022, to estimate the lost assessment.

(c) Reimbursements shall be distributed in full to cities, towns, and fire districts on September 30, 2024, and every September 30 thereafter; provided, however, that reimbursement shall not be provided to any city, town, or fire district in any year in which it has failed to provide to the division of municipal finance its certified tax roll in accordance with § 44-5-22 or any other information required by the division of municipal finance to calculate the reimbursement amount.

The division of municipal finance may rely solely upon such information provided to it in any year when calculating the reimbursement amount but may, although shall not be required to, also audit such information.