Rhode Island 2023 Regular Session

Rhode Island House Bill H5144 Compare Versions

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55 2023 -- H 5144
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99 S T A T E O F R H O D E I S L A N D
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 TOWNS AND CITIES -- STATE AID
1616 Introduced By: Representatives Cotter, and Casimiro
1717 Date Introduced: January 18, 2023
1818 Referred To: House Finance
1919
2020
2121 It is enacted by the General Assembly as follows:
2222 SECTION 1. Section 45-13-5.1 of the General Laws in Chapter 45-13 entitled "State Aid" 1
2323 is hereby amended to read as follows: 2
2424 45-13-5.1. General assembly appropriations in lieu of property tax from certain 3
2525 exempt private and state properties. 4
2626 (a) In lieu of the amount of local real property tax on real property owned by any private 5
2727 nonprofit institution of higher education, or any nonprofit hospital facility, or any state owned and 6
2828 operated hospital, veterans’ residential facility, or correctional facility occupied by more than one 7
2929 hundred (100) residents which may have been or will be exempted from taxation by applicable 8
3030 state law, exclusive of any facility operated by the federal government, the state of Rhode Island, 9
3131 or any of its subdivisions, the general assembly shall annually appropriate for payment to the 10
3232 several cities and towns in which the property lies a sum equal to twenty-seven percent (27%) of 11
3333 all tax that would have been collected had the real property been taxable; provided, however, said 12
3434 percentage shall be subject to adjustment pursuant to subsection (e) of this section; and provided, 13
3535 further, that such annual payment shall also apply to any and all real estate owned by the state 14
3636 within the town of Exeter, notwithstanding the restrictions stated above. 15
3737 (b) In no event shall any city or town record in a fiscal year both: (1) Taxes and/or payments 16
3838 under a stabilization agreement with a for-profit hospital facility; and (2) Distributions of 17
3939 appropriations under this section attributable to the prior nonprofit status of said for-profit hospital 18
4040 facility. 19
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4444 (c) As used in this section, “private nonprofit institution of higher education” means any 1
4545 institution engaged primarily in education beyond the high school level, the property of which is 2
4646 exempt from property tax under any of the subdivisions, and “nonprofit hospital facility” means 3
4747 any nonprofit hospital licensed by the state and which is used for the purpose of general medical, 4
4848 surgical, or psychiatric care and treatment. 5
4949 (d) The grant payable to any municipality under the provision of this section shall be equal 6
5050 to twenty-seven percent (27%) of the property taxes that, except for any exemption to any 7
5151 institution of higher education or general hospital facility, would have been paid with respect to 8
5252 that exempt real property on the assessment list in the municipality for the assessment date of 9
5353 December 31, 1986, and with respect to such exempt real property appearing on an assessment list 10
5454 in the municipality on succeeding assessment dates. Provided, however, that the grant paid for the 11
5555 fiscal year ending June 30, 2008, shall be based upon the assessment list in the municipality as of 12
5656 December 31, 2004. 13
5757 (e) The state budget offices shall include the amount of the annual appropriation in the state 14
5858 budget for the fiscal year commencing July 1, 1988, and each fiscal year thereafter. The amount of 15
5959 the annual distribution of appropriation payable to each eligible municipality in any year in 16
6060 accordance with this section shall be reduced proportionately in the event that the total of the annual 17
6161 appropriation in the state budget is insufficient to pay the eligible municipalities the amounts 18
6262 otherwise payable to said communities pursuant to subsection (a) of this section. 19
6363 (f) Distribution of appropriations shall be made by the state on or before July 31 of 1988 20
6464 and each July 31 thereafter or following verified receipt of a municipality’s assessment data for the 21
6565 following fiscal year’s payment, whichever is later, and the payments may be counted as a 22
6666 receivable by any city or town for a fiscal year ending the preceding June 30. 23
6767 (g) Any act or omission by the state with respect to this chapter shall in no way diminish 24
6868 the duty of any town or municipality to provide public safety or other ordinary services to the 25
6969 properties or facilities of the type listed in subsection (a). Such duty shall not pertain to the town of 26
7070 Exeter unless, and until such time as, it establishes a municipal police department. 27
7171 (h) Provided, that payments authorized pursuant to this section shall be initially applied to 28
7272 create a municipal police department in any community that does not have such a service on the 29
7373 effective date of this section, or to defray negotiated amounts paid by such municipality to the state 30
7474 for state police presence and coverage within that municipality and thereafter such payments shall 31
7575 be reduced pro rata, for that period of time that the municipality or local districts located therein 32
7676 suspend suspends or reduces reduce such essential services to eligible facilities. For the purposes 33
7777 of this section “essential services” include, but are not to be limited to, police, fire and rescue. 34
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8181 SECTION 2. This act shall take effect upon passage. 1
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8888 EXPLANATION
8989 BY THE LEGISLATIVE COUNCIL
9090 OF
9191 A N A C T
9292 TOWNS AND CITIES -- STATE AID
9393 ***
9494 This act would provide that state-owned real estate located within the town of Exeter would 1
9595 no longer be exempt from payment of state appropriations in lieu of taxes. This act would also 2
9696 provide that the town of Exeter shall have no duty to provide public safety or ordinary services to 3
9797 state properties unless it establishes a police department. This act would further provide that any 4
9898 state payments made in lieu of taxes be applied to establish a police department or defray expenses 5
9999 paid to the state for state police presence. 6
100100 This act would take effect upon passage. 7
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