Rhode Island House Bill H7957

Rhode Island 2022 Regular Session

• Introduced: 3/7/22
• Refer: 3/7/22
• Report Pass: 6/15/22
• Engrossed: 6/21/22
• Enrolled: 6/24/22
• Passed: 7/2/22

Caption

Property Subject To Taxation

Impact

The impact of this legislation signifies a shift in how property taxes are evaluated, particularly for nonprofit organizations operating within the state. By amending Section 44-3-3 of the General Laws, H7957 formalizes exemptions that will enhance the operational viability of specific organizations, promoting their ability to channel resources into their educational and community-focused initiatives. This change may have broader implications on local government revenues, as municipalities will receive less income from property taxes due to these exemptions.

Summary

House Bill H7957 focuses on amending the taxation laws in Rhode Island specifically regarding property subject to taxation. The bill introduces property tax exemptions for certain nonprofit organizations, including educational and charitable institutions located in Providence, such as Sophia Academy, San Miguel Education Center, and Community Preparatory School. This measure aims to alleviate the financial burden on these institutions by exempting their property from state taxation, thereby supporting their mission of providing educational services and community support.

Contention

Notably, the bill steers clear from addressing the tax status of for-profit hospital facilities. There are regulations outlined that will govern how property values will be assessed when a non-profit hospital converts to a for-profit entity. This particular aspect has sparked discussions about equity in taxation and the fairness of property assessments, especially within communities that are reliant on the contributions of both nonprofit and for-profit healthcare providers. Observers may raise concerns about the balance between supporting nonprofits and ensuring state revenues are maintained.