2024 -- S 2341 | |
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LC003727 | |
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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 TOWNS AND CITIES -- STATE AID | |
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Introduced By: Senators E Morgan, Rogers, and Raptakis | |
Date Introduced: February 12, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid" |
2 | is hereby amended to read as follows: |
3 | 45-13-5.1. General assembly appropriations in lieu of property tax from certain |
4 | exempt private and state properties. |
5 | (a) In lieu of the amount of local real property tax on real property owned by any private |
6 | nonprofit institution of higher education, or any nonprofit hospital facility, or any state owned and |
7 | operated hospital, veterans’ residential facility, or correctional facility occupied by more than one |
8 | hundred (100) residents which may have been or will be exempted from taxation by applicable |
9 | state law, exclusive of any facility operated by the federal government, the state of Rhode Island, |
10 | or any of its subdivisions, the general assembly shall annually appropriate for payment to the |
11 | several cities and towns in which the property lies a sum equal to twenty-seven percent (27%) of |
12 | all tax that would have been collected had the real property been taxable; provided, however, said |
13 | percentage shall be subject to adjustment pursuant to subsection (e) of this section; and provided, |
14 | further, that such annual payment shall also apply to any and all real estate owned by the state |
15 | within the town of Exeter, notwithstanding the restrictions stated above. |
16 | (b) In no event shall any city or town record in a fiscal year both: (1) Taxes and/or payments |
17 | under a stabilization agreement with a for-profit hospital facility; and (2) Distributions of |
18 | appropriations under this section attributable to the prior nonprofit status of said for-profit hospital |
19 | facility. |
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1 | (c) As used in this section, “private nonprofit institution of higher education” means any |
2 | institution engaged primarily in education beyond the high school level, the property of which is |
3 | exempt from property tax under any of the subdivisions, and “nonprofit hospital facility” means |
4 | any nonprofit hospital licensed by the state and which is used for the purpose of general medical, |
5 | surgical, or psychiatric care and treatment. |
6 | (d) The grant payable to any municipality under the provision of this section shall be equal |
7 | to twenty-seven percent (27%) of the property taxes that, except for any exemption to any |
8 | institution of higher education or general hospital facility, would have been paid with respect to |
9 | that exempt real property on the assessment list in the municipality for the assessment date of |
10 | December 31, 1986, and with respect to such exempt real property appearing on an assessment list |
11 | in the municipality on succeeding assessment dates. Provided, however, that the grant paid for the |
12 | fiscal year ending June 30, 2008, shall be based upon the assessment list in the municipality as of |
13 | December 31, 2004. |
14 | (e) The state budget offices shall include the amount of the annual appropriation in the state |
15 | budget for the fiscal year commencing July 1, 1988, and each fiscal year thereafter. The amount of |
16 | the annual distribution of appropriation payable to each eligible municipality in any year in |
17 | accordance with this section shall be reduced proportionately in the event that the total of the annual |
18 | appropriation in the state budget is insufficient to pay the eligible municipalities the amounts |
19 | otherwise payable to said communities pursuant to subsection (a) of this section. |
20 | (f) Distribution of appropriations shall be made by the state on or before July 31 of 1988 |
21 | and each July 31 thereafter or following verified receipt of a municipality’s assessment data for the |
22 | following fiscal year’s payment, whichever is later, and the payments may be counted as a |
23 | receivable by any city or town for a fiscal year ending the preceding June 30. |
24 | (g) Any act or omission by the state with respect to this chapter shall in no way diminish |
25 | the duty of any town or municipality to provide public safety or other ordinary services to the |
26 | properties or facilities of the type listed in subsection (a). Such duty shall not pertain to the town of |
27 | Exeter unless, and until such time as, it establishes a municipal police department. |
28 | (h) Provided, that payments authorized pursuant to this section shall be initially applied to |
29 | create a municipal police department in any community that does not have such a service on the |
30 | effective date of this section, or to defray negotiated amounts paid by such municipality to the state |
31 | for state police presence and coverage within that municipality and thereafter such payments shall |
32 | be reduced pro rata, for that period of time that the municipality or local districts located therein |
33 | suspend suspends or reduces reduce such essential services to eligible facilities. For the purposes |
34 | of this section “essential services” include, but are not to be limited to, police, fire and rescue. |
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1 | 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 TOWNS AND CITIES -- STATE AID | |
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1 | This act would provide that state-owned real estate located within the town of Exeter would |
2 | no longer be exempt from payment of state appropriations in lieu of taxes. This act would also |
3 | provide that the town of Exeter shall have no duty to provide public safety or ordinary services to |
4 | state properties unless it establishes a police department. This act would further provide that any |
5 | state payments made in lieu of taxes be applied to establish a police department or defray expenses |
6 | paid to the state for state police presence. |
7 | This act would take effect upon passage. |
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