2024 -- S 2341

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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

     

     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:

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     SECTION 1. Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid"

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is hereby amended to read as follows:

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     45-13-5.1. General assembly appropriations in lieu of property tax from certain

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exempt private and state properties.

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     (a) In lieu of the amount of local real property tax on real property owned by any private

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nonprofit institution of higher education, or any nonprofit hospital facility, or any state owned and

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operated hospital, veterans’ residential facility, or correctional facility occupied by more than one

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hundred (100) residents which may have been or will be exempted from taxation by applicable

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state law, exclusive of any facility operated by the federal government, the state of Rhode Island,

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or any of its subdivisions, the general assembly shall annually appropriate for payment to the

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several cities and towns in which the property lies a sum equal to twenty-seven percent (27%) of

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all tax that would have been collected had the real property been taxable; provided, however, said

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percentage shall be subject to adjustment pursuant to subsection (e) of this section; and provided,

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further, that such annual payment shall also apply to any and all real estate owned by the state

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within the town of Exeter, notwithstanding the restrictions stated above.

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     (b) In no event shall any city or town record in a fiscal year both: (1) Taxes and/or payments

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under a stabilization agreement with a for-profit hospital facility; and (2) Distributions of

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appropriations under this section attributable to the prior nonprofit status of said for-profit hospital

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facility.

 

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     (c) As used in this section, “private nonprofit institution of higher education” means any

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institution engaged primarily in education beyond the high school level, the property of which is

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exempt from property tax under any of the subdivisions, and “nonprofit hospital facility” means

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

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surgical, or psychiatric care and treatment.

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     (d) The grant payable to any municipality under the provision of this section shall be equal

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to twenty-seven percent (27%) of the property taxes that, except for any exemption to any

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institution of higher education or general hospital facility, would have been paid with respect to

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that exempt real property on the assessment list in the municipality for the assessment date of

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December 31, 1986, and with respect to such exempt real property appearing on an assessment list

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in the municipality on succeeding assessment dates. Provided, however, that the grant paid for the

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fiscal year ending June 30, 2008, shall be based upon the assessment list in the municipality as of

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December 31, 2004.

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     (e) The state budget offices shall include the amount of the annual appropriation in the state

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budget for the fiscal year commencing July 1, 1988, and each fiscal year thereafter. The amount of

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the annual distribution of appropriation payable to each eligible municipality in any year in

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accordance with this section shall be reduced proportionately in the event that the total of the annual

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appropriation in the state budget is insufficient to pay the eligible municipalities the amounts

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otherwise payable to said communities pursuant to subsection (a) of this section.

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     (f) Distribution of appropriations shall be made by the state on or before July 31 of 1988

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and each July 31 thereafter or following verified receipt of a municipality’s assessment data for the

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following fiscal year’s payment, whichever is later, and the payments may be counted as a

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receivable by any city or town for a fiscal year ending the preceding June 30.

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     (g) Any act or omission by the state with respect to this chapter shall in no way diminish

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the duty of any town or municipality to provide public safety or other ordinary services to the

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properties or facilities of the type listed in subsection (a). Such duty shall not pertain to the town of

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Exeter unless, and until such time as, it establishes a municipal police department.

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      (h) Provided, that payments authorized pursuant to this section shall be initially applied to

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create a municipal police department in any community that does not have such a service on the

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effective date of this section, or to defray negotiated amounts paid by such municipality to the state

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for state police presence and coverage within that municipality and thereafter such payments shall

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be reduced pro rata, for that period of time that the municipality or local districts located therein

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suspend suspends or reduces reduce such essential services to eligible facilities. For the purposes

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of this section “essential services” include, but are not to be limited to, police, fire and rescue.

 

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     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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     This act would provide that state-owned real estate located within the town of Exeter would

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no longer be exempt from payment of state appropriations in lieu of taxes. This act would also

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provide that the town of Exeter shall have no duty to provide public safety or ordinary services to

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state properties unless it establishes a police department. This act would further provide that any

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state payments made in lieu of taxes be applied to establish a police department or defray expenses

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paid to the state for state police presence.

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     This act would take effect upon passage.

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