If enacted, the bill will require the state to annually allocate a sum equal to twenty-seven percent (27%) of the potential local property taxes from state-owned properties in Exeter. This move is expected to provide a new revenue source for the town, which could be used to address local needs, particularly regarding the funding of municipal services. The bill aims to create a compensatory system for municipalities that have historically lost out on local tax revenues due to the tax-exempt status of certain properties.
Summary
House Bill 5144 seeks to amend the general laws concerning state aid to municipalities by introducing provisions that specifically affect state-owned real estate located within the town of Exeter. Under this bill, the state of Rhode Island would no longer exempt such properties from state appropriations that serve as a substitute for local property tax. This change is proposed to ensure that cities and towns receive a more equitable financial contribution from the state for properties that might otherwise contribute to local taxes if not exempt.
Contention
One point of contention surrounding HB 5144 involves the responsibility of Exeter in providing public safety services to state properties. According to the bill, Exeter will have no duty to provide such services unless it establishes its own police department. This particular provision has raised concerns about the adequacy of public safety in the vicinity of state properties and could lead to debates over local governance and the potential impact on community resources. Further discussions may arise regarding other municipalities that may wish to pursue similar arrangements as stipulated in the bill.
Provides PILOT to Exeter for state owned properties. Imposes no duty on Exeter to protect these properties. Requires payments to be used to create a police department or defray town expenses used to provide police protection.
Includes municipal detention facility corporations as exempt from taxation, and requires that an amount equal to 27% of all tax that would have been collected if the property was taxable be paid to the municipality annually.