Rhode Island Senate Bill S2462

Rhode Island 2022 Regular Session

• Introduced: 3/1/22
• Refer: 3/1/22
• Report Pass: 6/16/22
• Engrossed: 6/21/22

Caption

Joint Resolution Making An Appropriation In The Fiscal Year 2022-2023 Budget To Fund Payments In Lieu Of Taxes (pilot) At The Full Twenty-seven Percent Level (this Joint Resolution Would Authorize The Appropriation A Sum Sufficient To Fund Payments In Lieu Of Taxes At The Full Twenty-seven Percent.)

Impact

The passage of S2462 would significantly impact state laws by mandating funding for local governments as a means to counteract the effects of property tax exemptions. This resolution seeks to revert back to a previously established funding practice that has faltered in recent years, thus affirming the state's commitment to support its municipalities more effectively. With the appropriation set at the defined benchmark of 27%, local governments would have a clearer financial outlook and better tools to manage vital community services.

Summary

S2462 is a joint resolution introduced in 2022 that requests the appropriation of funds in the fiscal year 2022-2023 budget to support payments in lieu of taxes (PILOT) at a full 27% rate. This bill acknowledges the financial challenges faced by local governments in Rhode Island due to revenue lost from real property tax exemptions. By ensuring that municipalities receive adequate compensation for this loss, the bill aims to alleviate some of the fiscal burdens these communities face while providing services to tax-exempt entities.

Contention

Notably, the bill's journey through the legislative process saw unanimous approval, with a vote tally of 37 yeas and no nays during its final vote on June 21, 2022. The overwhelming support can be indicative of shared recognition among legislators of the importance of adequately funding local administrations. However, discussions around such appropriations often highlight the ongoing challenges in balancing state budget constraints while ensuring local governments are sustainably funded, which suggests that voters and taxpayers may still have concerns about the broader implications of tax policy and local governance.