2024 -- H 7546 | |
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LC004125 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION | |
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Introduced By: Representatives Morales, Chippendale, Biah, Perez, Batista, Sanchez, | |
Date Introduced: February 07, 2024 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is |
2 | hereby amended by adding thereto the following section: |
3 | 44-3-68. Imposition of tax on higher education private institution endowments. |
4 | (a) There is hereby imposed a tax upon the endowment of a private institution of higher |
5 | education with an endowment in excess of one billion dollars ($1,000,000,000). This tax shall be |
6 | in an amount equal to two percent (2%) upon each dollar or dollar value within the endowment in |
7 | excess of one billion dollars ($1,000,000,000). |
8 | (b) All tax revenues collected pursuant to the provisions of this section shall be deposited |
9 | into a restricted receipt account. |
10 | (c) The funds in the restricted receipt account shall be disbursed to the municipality where |
11 | the private institution of higher education is situated. These funds shall be used expressly to hire, |
12 | retain, and support behavioral health staff within the public schools of the municipality, which staff |
13 | shall include, but not be limited to, social workers, school psychologists, and behavioral health |
14 | specialists. |
15 | (d) As used in this section, the following terms shall have the following meanings: |
16 | (1) “Endowment” means a fund or source of funds, much of which consists of donations |
17 | of money or property to the private institution of higher education, which uses the resulting |
18 | investment income for a purpose, or to be used for operations or programs of the private institution. |
19 | (2) “Situated” means the municipality where the private institution is predominantly |
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1 | located or maintains a majority of its physical buildings, including, but not limited to, a campus. |
2 | SECTION 2. 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 | |
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1 | This act would provide for a tax upon the endowment of a private institution of higher |
2 | education equal to two percent (2%) upon each dollar or dollar value within the endowment in |
3 | excess of one billion dollars ($1,000,000,000). These funds would be used to hire, retain, and |
4 | support behavioral health staff within the public schools of the municipality where the private |
5 | institution is predominantly located. |
6 | This act would take effect upon passage. |
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