2025 -- H 5285

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LC000786

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

     

     Introduced By: Representatives Morales, Biah, Batista, DeSimone, Diaz, Sanchez, Slater,
J. Lombardi, Chippendale, and Place

     Date Introduced: January 31, 2025

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is

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hereby amended by adding thereto the following section:

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     44-3-70. Municipal taxation on an endowment of a private institution of higher

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education.

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     (a) Each city and town, by ordinance adopted by the city or town council, may wholly or

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partially impose a tax, of not more than two percent (2%), on the endowment of a private institution

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of higher education that is in excess of one billion dollars ($1,000,000,000).

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     (b) All tax revenues generated pursuant to this section shall be deposited in a restricted

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receipt account, by the city or town, to be used for the public school district of that municipality.

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     SECTION 2. This act shall take effect upon passage.

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LC000786

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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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     This act would authorize a host city or town to impose a two percent (2%) tax on the

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endowment of a private institution of higher education that is in excess of one billion dollars

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($1,000,000,000), to be used only for the host public school district.

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     This act would take effect upon passage.

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