2023 -- S 0878
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LC000700
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
____________
A N A C T
RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION
Introduced By: Senators Mack, and Bell
Date Introduced: March 30, 2023
Referred To: Senate Housing & Municipal Government
It is enacted by the General Assembly as follows:
SECTION 1. The general assembly finds as follows: 1
WHEREAS, In the 1890s, the general assembly enacted numerous charters incorporating 2
nonprofit hospitals throughout the state; and 3
WHEREAS, In the 1900s, the general assembly enacted numerous charters incorporating 4
nonprofit colleges and universities for specific educational purposes set forth in the charters; and 5
WHEREAS, The corporate charters of colleges and universities exempted from taxation 6
property owned by said educational institutions, provided that the real estate "not used for the 7
corporate purposes shall not be so exempt;" and 8
WHEREAS, The corporate charters of the hospitals, in general, authorizes them to erect, 9
support and maintain facilities for the non-business purposes for which the entities are incorporated, 10
and require that the corporations be managed by their boards of directors, which boards are defined 11
and delineated in the legislative corporate charters; and 12
WHEREAS, Pursuant to the legislatively-granted charters, the nonprofit hospitals in the 13
state have enjoyed exemptions from taxation on all real and personal property owned by the 14
hospitals, pursuant to provisions of the legislation stating that: "the property and estate of said 15
corporation, both real and personal, shall not at any time be liable to be assessed in the 16
apportionment of any state or town tax;" and 17
WHEREAS, In the absence of an express statutory definition to the contrary, the state 18
supreme court has held that the language in the hospital charters affords tax exempt status to all 19
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hospital owned property as long as the net income from the property is devoted to the general uses 1
of the hospital, regardless of whether the property is used "wholly" or "exclusively" for the missions 2
and functions of a hospital; and 3
WHEREAS, The state supreme court has further indicated that issues regarding statutory 4
tax exemptions for chartered and nonprofit organizations implicate public policy decisions to be 5
addressed by the general assembly; and 6
WHEREAS, The language of chartered colleges and universities and nonprofit hospitals 7
has never been amended to remove the tax exemptions provided by the legislation; and 8
WHEREAS, The real and personal property held by the chartered entities has increased 9
exponentially, far exceeding what the general assembly would have contemplated when the charters 10
were enacted over a century ago; and 11
WHEREAS, Chartered colleges, universities and hospitals hold property for use by and for 12
commercial, for-profit ventures such as eating establishments, shopping centers, parking garages, 13
and other operations not directly related to the provision of education or for hospital medical care; 14
and 15
WHEREAS, Nonprofit hospitals now expend funds on mass marketing campaigns, large 16
network "holding" and management corporations which are comprised of a board of directors that 17
oversees each hospital and legislatively delineated hospital board, and which conduct business on 18
behalf of not only the hospitals, but also on behalf of physicians’ groups, laboratories, imaging 19
centers and other matters not related to the acquisition and maintenance of a hospital; and 20
WHEREAS, The tax exemptions afforded to all property owned by chartered nonprofit 21
colleges, universities and hospitals, regardless of their uses, imposes a significant burden on the 22
cities and towns in which they are located, and the taxpaying residents of such cities and towns; 23
and 24
THEREFORE, The general assembly deems it appropriate to place limitations on the tax 25
exempt real and personal property a nonprofit college, university or hospital may hold. 26
SECTION 2. Section 44-3-3 of the General Laws in Chapter 44-3 entitled "Property 27
Subject to Taxation" is hereby amended to read as follows: 28
44-3-3. Property exempt. 29
(a) The following property is exempt from taxation: 30
(1) Property belonging to the state, except as provided in § 44-4-4.1; 31
(2) Lands ceded or belonging to the United States; 32
(3) Bonds and other securities issued and exempted from taxation by the government of 33
the United States or of this state; 34
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(4) Real estate, used exclusively for military purposes, owned by chartered or incorporated 1
organizations approved by the adjutant general and composed of members of the national guard, 2
the naval militia, or the independent, chartered-military organizations; 3
(5) Buildings for free public schools, buildings for religious worship, and the land upon 4
which they stand and immediately surrounding them, to an extent not exceeding five (5) acres so 5
far as the buildings and land are occupied and used exclusively for religious or educational 6
purposes; 7
(6) Dwellings houses and the land on which they stand, not exceeding one acre in size, or 8
the minimum lot size for zone in which the dwelling house is located, whichever is the greater, 9
owned by, or held in trust for, any religious organization and actually used by its officiating clergy; 10
provided, further, that in the town of Charlestown, where the property previously described in this 11
paragraph is exempt in total, along with dwelling houses and the land on which they stand in 12
Charlestown, not exceeding one acre in size, or the minimum lot size for zone in which the dwelling 13
house is located, whichever is the greater, owned by, or held in trust for, any religious organization 14
and actually used by its officiating clergy, or used as a convent, nunnery, or retreat center by its 15
religious order; 16
(7) Intangible personal property owned by, or held in trust for, any religious or charitable 17
organization, if the principal or income is used or appropriated for religious or charitable purposes; 18
(8) Buildings and personal estate owned by any corporation used for a school, academy, or 19
seminary of learning, except for a nonprofit institution of higher education and of any incorporated 20
public charitable institution, and the land upon which the buildings stand and immediately 21
surrounding them to an extent not exceeding one acre, so far as they are used exclusively for 22
educational purposes, but no property or estate whatever is hereafter exempt from taxation in any 23
case where any part of its income or profits, or of the business carried on there, is divided among 24
its owners or stockholders; provided, however, that unless any private nonprofit corporation 25
organized as a college or university located in the town of Smithfield reaches a memorandum of 26
agreement with the town of Smithfield, the town of Smithfield shall bill the actual costs for police, 27
fire, and rescue services supplied, unless otherwise reimbursed, to said corporation commencing 28
March 1, 2014; 29
(9) Estates, persons, and families of the president and professors for the time being of 30
Brown University for not more than ten thousand dollars ($10,000) for each officer, the officer’s 31
estate, person, and family included, but only to the extent that any person had claimed and utilized 32
the exemption prior to, and for a period ending, either on or after December 31, 1996; 33
(10) Property especially exempt by charter unless the exemption has been waived in whole 34
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or in part, and except as provided in subsection (c) of this section; 1
(11) Lots of land exclusively for burial grounds; 2
(12) Property, real and personal, held for, or by, an incorporated library, society, or any 3
free public library, or any free public library society, so far as the property is held exclusively for 4
library purposes, or for the aid or support of the aged poor, or poor friendless children, or the poor 5
generally, or for a nonprofit hospital for the sick or disabled; 6
(13) Real or personal estate belonging to, or held in trust for, the benefit of incorporated 7
organizations of veterans of any war in which the United States has been engaged, the parent body 8
of which has been incorporated by act of Congress, to the extent of four hundred thousand dollars 9
($400,000) if actually used and occupied by the association; provided, that the city council of the 10
city of Cranston may by ordinance exempt the real or personal estate as previously described in 11
this subdivision located within the city of Cranston to the extent of five hundred thousand dollars 12
($500,000); 13
(14) Property, real and personal, held for, or by, the fraternal corporation, association, or 14
body created to build and maintain a building or buildings for its meetings or the meetings of the 15
general assembly of its members, or subordinate bodies of the fraternity, and for the 16
accommodation of other fraternal bodies or associations, the entire net income of which real and 17
personal property is exclusively applied or to be used to build, furnish, and maintain an asylum or 18
asylums, a home or homes, a school or schools, for the free education or relief of the members of 19
the fraternity, or the relief, support, and care of worthy and indigent members of the fraternity, their 20
wives, widows, or orphans, and any fund given or held for the purpose of public education, 21
almshouses, and the land and buildings used in connection therewith; 22
(15) Real estate and personal property of any incorporated volunteer fire engine company 23
or incorporated volunteer ambulance or rescue corps in active service; 24
(16) The estate of any person who, in the judgment of the assessors, is unable from infirmity 25
or poverty to pay the tax; provided, that in the towns of Burrillville and West Greenwich, the tax 26
shall constitute a lien for five (5) years on the property where the owner is entitled to the exemption. 27
At the expiration of five (5) years, the lien shall be abated in full. Provided, if the property is sold 28
or conveyed, or if debt secured by the property is refinanced during the five-year (5) period, the 29
lien immediately becomes due and payable; any person claiming the exemption aggrieved by an 30
adverse decision of an assessor shall appeal the decision to the local board of tax review and 31
thereafter according to the provisions of § 44-5-26; 32
(17) Household furniture and family stores of a housekeeper in the whole, including 33
clothing, bedding, and other white goods, books, and all other tangible personal property items that 34
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are common to the normal household; 1
(18) Improvements made to any real property to provide a shelter and fallout protection 2
from nuclear radiation, to the amount of one thousand five hundred dollars ($1,500); provided, that 3
the improvements meet applicable standards for shelter construction established, from time to time, 4
by the Rhode Island emergency management agency. The improvements are deemed to comply 5
with the provisions of any building code or ordinance with respect to the materials or the methods 6
of construction used and any shelter or its establishment is deemed to comply with the provisions 7
of any zoning code or ordinance; 8
(19) Aircraft for which the fee required by § 1-4-6 has been paid to the tax administrator; 9
(20) Manufacturer’s inventory. 10
(i) For the purposes of §§ 44-4-10, 44-5-3, 44-5-20, and 44-5-38, a person is deemed to be 11
a manufacturer within a city or town within this state if that person uses any premises, room, or 12
place in it primarily for the purpose of transforming raw materials into a finished product for trade 13
through any or all of the following operations: adapting, altering, finishing, making, and 14
ornamenting; provided, that public utilities; non-regulated power producers commencing 15
commercial operation by selling electricity at retail or taking title to generating facilities on or after 16
July 1, 1997; building and construction contractors; warehousing operations, including distribution 17
bases or outlets of out-of-state manufacturers; and fabricating processes incidental to warehousing 18
or distribution of raw materials, such as alteration of stock for the convenience of a customer; are 19
excluded from this definition; 20
(ii) For the purposes of this section and §§ 44-4-10 and 44-5-38, the term “manufacturer’s 21
inventory,” or any similar term, means and includes the manufacturer’s raw materials, the 22
manufacturer’s work in process, and finished products manufactured by the manufacturer in this 23
state, and not sold, leased, or traded by the manufacturer or its title or right to possession divested; 24
provided, that the term does not include any finished products held by the manufacturer in any retail 25
store or other similar selling place operated by the manufacturer whether or not the retail 26
establishment is located in the same building in which the manufacturer operates the manufacturing 27
plant; 28
(iii) For the purpose of § 44-11-2, a “manufacturer” is a person whose principal business 29
in this state consists of transforming raw materials into a finished product for trade through any or 30
all of the operations described in paragraph (i) of this subdivision. A person will be deemed to be 31
principally engaged if the gross receipts that person derived from the manufacturing operations in 32
this state during the calendar year or fiscal year mentioned in § 44-11-1 amounted to more than 33
fifty percent (50%) of the total gross receipts that person derived from all the business activities in 34
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which that person engaged in this state during the taxable year. For the purpose of computing the 1
percentage, gross receipts derived by a manufacturer from the sale, lease, or rental of finished 2
products manufactured by the manufacturer in this state, even though the manufacturer’s store or 3
other selling place may be at a different location from the location of the manufacturer’s 4
manufacturing plant in this state, are deemed to have been derived from manufacturing; 5
(iv) Within the meaning of the preceding paragraphs of this subdivision, the term 6
“manufacturer” also includes persons who are principally engaged in any of the general activities 7
coded and listed as establishments engaged in manufacturing in the Standard Industrial 8
Classification Manual prepared by the Technical Committee on Industrial Classification, Office of 9
Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as 10
revised from time to time, but eliminating as manufacturers those persons, who, because of their 11
limited type of manufacturing activities, are classified in the manual as falling within the trade 12
rather than an industrial classification of manufacturers. Among those thus eliminated, and 13
accordingly also excluded as manufacturers within the meaning of this paragraph, are persons 14
primarily engaged in selling, to the general public, products produced on the premises from which 15
they are sold, such as neighborhood bakeries, candy stores, ice cream parlors, shade shops, and 16
custom tailors, except, that a person who manufactures bakery products for sale primarily for home 17
delivery, or through one or more non-baking retail outlets, and whether or not retail outlets are 18
operated by the person, is a manufacturer within the meaning of this paragraph; 19
(v) The term “Person” means and includes, as appropriate, a person, partnership, or 20
corporation; and 21
(vi) The department of revenue shall provide to the local assessors any assistance that is 22
necessary in determining the proper application of the definitions in this subdivision; 23
(21) Real and tangible personal property acquired to provide a treatment facility used 24
primarily to control the pollution or contamination of the waters or the air of the state, as defined 25
in chapter 12 of title 46 and chapter 25 of title 23, respectively, the facility having been constructed, 26
reconstructed, erected, installed, or acquired in furtherance of federal or state requirements or 27
standards for the control of water or air pollution or contamination, and certified as approved in an 28
order entered by the director of environmental management. The property is exempt as long as it is 29
operated properly in compliance with the order of approval of the director of environmental 30
management; provided, that any grant of the exemption by the director of environmental 31
management in excess of ten (10) years is approved by the city or town in which the property is 32
situated. This provision applies only to water and air pollution control properties and facilities 33
installed for the treatment of waste waters and air contaminants resulting from industrial 34
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processing; furthermore, it applies only to water or air pollution control properties and facilities 1
placed in operation for the first time after April 13, 1970; 2
(22) Manufacturing machinery and equipment acquired or used by a manufacturer after 3
December 31, 1974. Manufacturing machinery and equipment is defined as: 4
(i) Machinery and equipment used exclusively in the actual manufacture or conversion of 5
raw materials or goods in the process of manufacture by a manufacturer, as defined in subdivision 6
(20), and machinery, fixtures, and equipment used exclusively by a manufacturer for research and 7
development or for quality assurance of its manufactured products; 8
(ii) Machinery and equipment that is partially used in the actual manufacture or conversion 9
of raw materials or goods in process of manufacture by a manufacturer, as defined in subdivision 10
(20), and machinery, fixtures, and equipment used by a manufacturer for research and development 11
or for quality assurance of its manufactured products, to the extent to which the machinery and 12
equipment is used for the manufacturing processes, research and development, or quality assurance. 13
In the instances where machinery and equipment is used in both manufacturing and/or research and 14
development and/or quality assurance activities and non-manufacturing activities, the assessment 15
on machinery and equipment is prorated by applying the percentage of usage of the equipment for 16
the manufacturing, research and development, and quality-assurance activity to the value of the 17
machinery and equipment for purposes of taxation, and the portion of the value used for 18
manufacturing, research and development, and quality assurance is exempt from taxation. The 19
burden of demonstrating this percentage usage of machinery and equipment for manufacturing and 20
for research and development and/or quality assurance of its manufactured products rests with the 21
manufacturer; and 22
(iii) Machinery and equipment described in §§ 44-18-30(7) and 44-18-30(22) that was 23
purchased after July 1, 1997; provided that the city or town council of the city or town in which the 24
machinery and equipment is located adopts an ordinance exempting the machinery and equipment 25
from taxation. For purposes of this subsection, city councils and town councils of any municipality 26
may, by ordinance, wholly or partially exempt from taxation the machinery and equipment 27
discussed in this subsection for the period of time established in the ordinance and may, by 28
ordinance, establish the procedures for taxpayers to avail themselves of the benefit of any 29
exemption permitted under this section; provided, that the ordinance does not apply to any 30
machinery or equipment of a business, subsidiary, or any affiliated business that locates or relocates 31
from a city or town in this state to another city or town in the state; 32
(23) Precious metal bullion, meaning any elementary metal that has been put through a 33
process of melting or refining, and that is in a state or condition that its value depends upon its 34
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content and not its form. The term does not include fabricated precious metal that has been 1
processed or manufactured for some one or more specific and customary industrial, professional, 2
or artistic uses; 3
(24) Hydroelectric power-generation equipment, which includes, but is not limited to, 4
turbines, generators, switchgear, controls, monitoring equipment, circuit breakers, transformers, 5
protective relaying, bus bars, cables, connections, trash racks, headgates, and conduits. The 6
hydroelectric power-generation equipment must have been purchased after July 1, 1979, and 7
acquired or used by a person or corporation who or that owns or leases a dam and utilizes the 8
equipment to generate hydroelectric power; 9
(25) Subject to authorization by formal action of the council of any city or town, any real 10
or personal property owned by, held in trust for, or leased to an organization incorporated under 11
chapter 6 of title 7, as amended, or an organization meeting the definition of “charitable trust” set 12
out in § 18-9-4, as amended, or an organization incorporated under the not-for-profits statutes of 13
another state or the District of Columbia, the purpose of which is the conserving of open space, as 14
that term is defined in chapter 36 of title 45, as amended, provided the property is used exclusively 15
for the purposes of the organization; 16
(26) Tangible personal property, the primary function of which is the recycling, reuse, or 17
recovery of materials (other than precious metals, as defined in § 44-18-30(24)(ii) and (iii)), from, 18
or the treatment of “hazardous wastes,” as defined in § 23-19.1-4, where the “hazardous wastes” 19
are generated primarily by the same taxpayer and where the personal property is located at, in, or 20
adjacent to a generating facility of the taxpayer. The taxpayer may, but need not, procure an order 21
from the director of the department of environmental management certifying that the tangible 22
personal property has this function, which order effects a conclusive presumption that the tangible 23
personal property qualifies for the exemption under this subdivision. If any information relating to 24
secret processes or methods of manufacture, production, or treatment is disclosed to the department 25
of environmental management only to procure an order, and is a “trade secret” as defined in § 28-26
21-10(b), it shall not be open to public inspection or publicly disclosed unless disclosure is 27
otherwise required under chapter 21 of title 28 or chapter 24.4 of title 23; 28
(27) Motorboats as defined in § 46-22-2 for which the annual fee required in § 46-22-4 has 29
been paid; 30
(28) Real and personal property of the Providence Performing Arts Center, a non-business 31
corporation as of December 31, 1986; 32
(29) Tangible personal property owned by, and used exclusively for the purposes of, any 33
religious organization located in the city of Cranston; 34
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(30) Real and personal property of the Travelers Aid Society of Rhode Island, a nonprofit 1
corporation, the Union Mall Real Estate Corporation, and any limited partnership or limited liability 2
company that is formed in connection with, or to facilitate the acquisition of, the Providence YMCA 3
Building; 4
(31) Real and personal property of Meeting Street Center or MSC Realty, Inc., both not-5
for-profit Rhode Island corporations, and any other corporation, limited partnership, or limited 6
liability company that is formed in connection with, or to facilitate the acquisition of, the properties 7
designated as the Meeting Street National Center of Excellence on Eddy Street in Providence, 8
Rhode Island; 9
(32) The buildings, personal property, and land upon which the buildings stand, located on 10
Pomham Island, East Providence, currently identified as Assessor’s Map 211, Block 01, Parcel 11
001.00, that consists of approximately twenty-one thousand three hundred (21,300) square feet and 12
is located approximately eight hundred sixty feet (860′), more or less, from the shore, and limited 13
exclusively to these said buildings, personal estate and land, provided that said property is owned 14
by a qualified 501(c)(3) organization, such as the American Lighthouse Foundation, and is used 15
exclusively for a lighthouse; 16
(33) The Stadium Theatre Performing Arts Centre building located in Monument Square, 17
Woonsocket, Rhode Island, so long as said Stadium Theatre Performing Arts Center is owned by 18
the Stadium Theatre Foundation, a Rhode Island nonprofit corporation; 19
(34) Real and tangible personal property of St. Mary Academy — Bay View, located in 20
East Providence, Rhode Island; 21
(35) Real and personal property of East Bay Community Action Program and its 22
predecessor, Self Help, Inc; provided, that the organization is qualified as a tax-exempt corporation 23
under § 501(c)(3) of the United States Internal Revenue Code; 24
(36) Real and personal property located within the city of East Providence of the Columbus 25
Club of East Providence, a Rhode Island charitable nonprofit corporation; 26
(37) Real and personal property located within the city of East Providence of the Columbus 27
Club of Barrington, a Rhode Island charitable nonprofit corporation; 28
(38) Real and personal property located within the city of East Providence of Lodge 2337 29
BPO Elks, a Rhode Island nonprofit corporation; 30
(39) Real and personal property located within the city of East Providence of the St. 31
Andrews Lodge No. 39, a Rhode Island charitable nonprofit corporation; 32
(40) Real and personal property located within the city of East Providence of the Trustees 33
of Methodist Health and Welfare service a/k/a United Methodist Elder Care, a Rhode Island 34
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nonprofit corporation; 1
(41) Real and personal property located on the first floor of 90 Leonard Avenue within the 2
city of East Providence of the Zion Gospel Temple, Inc., a religious nonprofit corporation; 3
(42) Real and personal property located within the city of East Providence of the Cape 4
Verdean Museum Exhibit, a Rhode Island nonprofit corporation; 5
(43) The real and personal property owned by a qualified 501(c)(3) organization that is 6
affiliated and in good standing with a national, congressionally chartered organization and thereby 7
adheres to that organization’s standards and provides activities designed for recreational, 8
educational, and character building purposes for children from ages six (6) years to seventeen (17) 9
years; 10
(44) Real and personal property of the Rhode Island Philharmonic Orchestra and Music 11
School; provided, that the organization is qualified as a tax-exempt corporation under § 501(c)(3) 12
of the United States Internal Revenue Code; 13
(45) The real and personal property located within the town of West Warwick at 211 14
Cowesett Avenue, Plat 29-Lot 25, which consists of approximately twenty-eight thousand seven 15
hundred fifty (28,750) square feet and is owned by the Station Fire Memorial Foundation of East 16
Greenwich, a Rhode Island nonprofit corporation; 17
(46) Real and personal property of the Comprehensive Community Action Program, a 18
qualified tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code; 19
(47) Real and personal property located at 52 Plain Street, within the city of Pawtucket of 20
the Pawtucket Youth Soccer Association, a Rhode Island nonprofit corporation; 21
(48) Renewable energy resources, as defined in § 39-26-5, used in residential systems and 22
associated equipment used therewith in service after December 31, 2015; 23
(49) Renewable energy resources, as defined in § 39-26-5, if employed by a manufacturer, 24
as defined in subsection (a) of this section, shall be exempt from taxation in accordance with 25
subsection (a) of this section; 26
(50) Real and personal property located at 415 Tower Hill Road within the town of North 27
Kingstown, of South County Community Action, Inc., a qualified tax-exempt corporation under § 28
501(c)(3) of the United States Internal Revenue Code; 29
(51) As an effort to promote business growth, tangible business or personal property, in 30
whole or in part, within the town of Charlestown’s community limits, subject to authorization by 31
formal action of the town council of the town of Charlestown; 32
(52) All real and personal property located at 1300 Frenchtown Road, within the town of 33
East Greenwich, identified as assessor’s map 027, plat 019, lot 071, and known as the New England 34
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Wireless and Steam Museum, Inc., a qualified tax-exempt corporation under § 501(c)(3) of the 1
United States Internal Revenue Code; 2
(53) Real and tangible personal property of Mount Saint Charles Academy located within 3
the city of Woonsocket, specifically identified as the following assessor’s plats and lots: Logee 4
Street, plat 23, lot 62, Logee Street, plat 24, lots 304 and 305; Welles Street, plat 23, lot 310; 5
Monroe Street, plat 23, lot 312; and Roberge Avenue, plat 24, lot 47; 6
(54) Real and tangible personal property of Steere House, a Rhode Island nonprofit 7
corporation, located in Providence, Rhode Island; 8
(55) Real and personal property located within the town of West Warwick of Tides Family 9
Services, Inc., a Rhode Island nonprofit corporation; 10
(56) Real and personal property of Tides Family Services, Inc., a Rhode Island nonprofit 11
corporation, located in the city of Pawtucket at 242 Dexter Street, plat 44, lot 444; 12
(57) Real and personal property located within the town of Middletown of Lucy’s Hearth, 13
a Rhode Island nonprofit corporation; 14
(58) Real and tangible personal property of Habitat for Humanity of Rhode Island—15
Greater Providence, Inc., a Rhode Island nonprofit corporation, located in Providence, Rhode 16
Island; 17
(59) Real and personal property of the Artic Playhouse, a Rhode Island nonprofit 18
corporation, located in the town of West Warwick at 1249 Main Street; 19
(60) Real and personal property located at 321 Main Street, within the town of South 20
Kingstown, of the Contemporary Theatre Company, a qualified, tax-exempt corporation under § 21
501(c)(3) of the United States Internal Revenue Code; 22
(61) Real and personal property of The Samaritans, Inc., a Rhode Island nonprofit § 23
501(c)(3) corporation located at 67 Park Place, Pawtucket, Rhode Island, to the extent the city 24
council of Pawtucket may from time to time determine; 25
(62) Real and personal property of North Kingstown, Exeter Animal Protection League, 26
Inc., dba “Pet Refuge,” 500 Stony Lane, a Rhode Island nonprofit corporation, located in North 27
Kingstown, Rhode Island; 28
(63) Real and personal property located within the city of East Providence of Foster 29
Forward (formerly the Rhode Island Foster Parents Association), a Rhode Island charitable 30
nonprofit corporation; 31
(64) Real and personal property located at 54 Kelly Avenue within the town of East 32
Providence, of the Associated Radio Amateurs of Southern New England, a Rhode Island nonprofit 33
corporation; 34
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(65) Real and tangible personal property of Providence Country Day School, a Rhode 1
Island nonprofit corporation, located in East Providence, Rhode Island and further identified as plat 2
406, block 6, lot 6, and plat 506, block 1, lot 8; 3
(66) As an effort to promote business growth, tangible business or personal property, in 4
whole or in part, within the town of Bristol’s community limits, subject to authorization by formal 5
action of the town council of the town of Bristol; 6
(67) Real and tangible personal property of the Heritage Harbor Foundation, a Rhode 7
Island nonprofit corporation, located at 1445 Wampanoag Trail, Suites 103 and 201, within the city 8
of East Providence; 9
(68) Real property of Ocean State Community Wellness, Inc., a qualified tax-exempt 10
corporation under § 501(c)(3) of the United States Internal Revenue Code, located in North 11
Kingstown, Rhode Island, with a physical address of 7450 Post Road, and further identified as plat 12
108, lot 83; 13
(69) Real and tangible personal property of St. John Baptist De La Salle Institute, d/b/a La 14
Salle Academy, a Rhode Island domestic nonprofit corporation, located in Providence, Rhode 15
Island denominated at the time this subsection was adopted as Plat 83 Lot 276 by the tax assessor 16
for the city of Providence comprising approximately 26.08 acres of land along with all buildings 17
and improvements that have been or may be made; 18
(70) Real and tangible personal property of The Providence Community Health Centers, 19
Inc., a Rhode Island domestic nonprofit corporation, located in Providence, Rhode Island; 20
(71) In the city of Central Falls and the city of Pawtucket, real property and tangible 21
personal property located on or in the premise acquired or leased by a railroad entity and for the 22
purpose of providing boarding and disembarking of railroad passengers and the supporting 23
passenger railroad operations and services. For the purpose of this section, a railroad entity shall be 24
any incorporated entity that has been duly authorized by the Rhode Island public utilities 25
commission to provide passenger railroad services; 26
(72) Real and tangible personal property of the American Legion Riverside Post Holding 27
Company, d/b/a American Legion Post 10, a Rhode Island nonprofit corporation, located at 830 28
Willet Avenue, within the city of East Providence on Map 513, Block 27, Parcel 001.00 as long as 29
said property is owned by American Legion Post 10; 30
(73) Real and tangible personal property of the Holy Rosary Band Society, a Rhode Island 31
nonprofit corporation, located at 328 Taunton Avenue, within the city of East Providence on Map 32
306, Block 01, Parcel 012.00; 33
(74) Real and tangible personal property of Foster Forward, a Rhode Island domestic 34
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nonprofit corporation, located within the city of Pawtucket, at 16 North Bend Street, and further 1
identified as assessor’s plat 21, lot 312; 2
(75) Real and tangible personal property of the Old and Ancient Rowers Society of Rhode 3
Island, a Rhode Island domestic nonprofit corporation, located at 166 Walmsley Lane, within the 4
town of North Kingstown on Plat 004/Lot 019; 5
(76) Real and tangible personal property of the Rhode Island Public Health Foundation, a 6
domestic nonprofit corporation or any other entity formed by the Rhode Island Public Health 7
Foundation in connection with, or to facilitate the acquisition of, one property to be owned by the 8
Rhode Island Public Health Foundation or such entity, located in the city of Providence; 9
(77) Real and tangible personal property of the Manissean Tribal Council, a Rhode Island 10
nonprofit corporation, located in the town of New Shoreham, Rhode Island; 11
(78) Real and tangible personal property of Sophia Academy located at 582 Elmwood 12
Avenue, the San Miguel Education Center located at 525 Branch Avenue, and the Community 13
Preparatory School, Inc. located at 135 Prairie Avenue, all of which are domestic nonprofit 14
corporations, and all of which are located within the city of Providence; and 15
(79) Real and tangible personal property of Cape Verdean Museum Exhibit, a Rhode Island 16
domestic nonprofit corporation, located at 617 Prospect Street, within the city of Pawtucket on 17
Assessors’ Plat 37, Lot 434. 18
(b) Except as provided below, when a city or town taxes a for-profit hospital facility, the 19
value of its real property shall be the value determined by the most recent full revaluation or 20
statistical property update performed by the city or town; provided, however, in the year a nonprofit 21
hospital facility converts to or otherwise becomes a for-profit hospital facility, or a for-profit 22
hospital facility is initially established, the value of the real property and personal property of the 23
for-profit hospital facility shall be determined by a valuation performed by the assessor for the 24
purpose of determining an initial assessed value of real and personal property, not previously taxed 25
by the city or town, as of the most recent date of assessment pursuant to § 44-5-1, subject to a right 26
of appeal by the for-profit hospital facility which shall be made to the city or town tax assessor with 27
a direct appeal from an adverse decision to the Rhode Island superior court business calendar. 28
A “for-profit hospital facility” includes all real and personal property affiliated with any 29
hospital as identified in an application filed pursuant to chapter 17 or 17.14 of title 23. 30
Notwithstanding the above, a city or town may enter into a stabilization agreement with a for-profit 31
hospital facility under § 44-3-9 or other laws specific to the particular city or town relating to 32
stabilization agreements. In a year in which a nonprofit hospital facility converts to, or otherwise 33
becomes, a for-profit hospital facility, or a for-profit hospital facility is otherwise established, in 34
LC000700 - Page 14 of 16
that year only the amount levied by the city or town and/or the amount payable under the 1
stabilization agreement for that year related to the for-profit hospital facility shall not be counted 2
towards determining the maximum tax levy permitted under § 44-5-2. 3
(c) Authorization to tax certain nonprofit properties within cities and towns exempt by 4
charter, general, public, or special law. 5
(1) Notwithstanding any charter provision, any other provisions of this section or any other 6
provision of the general, public, or special law to the contrary, each city and town may impose a 7
property tax on the following real and/or personal property owned, leased or operated in whole or 8
in part by any nonprofit institution of higher education or hospital: 9
(i) Any and all vacant lots, improved or unimproved, within the city or town, and/or such 10
portion of a lot that is vacant; and 11
(ii) Any and all lots, buildings, structures or other property used for transient, overnight or 12
permanent parking of motor vehicles, excepting any portion used wholly and exclusively for 13
parking of vehicles owned or leased by the nonprofit entity and used for purposes of operating and 14
maintaining the nonprofit entity owned or leased vehicle parking; and 15
(iii) Any and all real property owned, leased or operated within the city or town, or any 16
portion thereof, that is not wholly and exclusively utilized for the purposes for which the nonprofits 17
were incorporated, as set forth in their respective charters, or applicable provisions of the general, 18
public, or special laws, regardless of whether or not the net income from the said property, or any 19
portion thereof, is applied to, shall be used for, supports, or financially maintains the purposes for 20
which the nonprofits were incorporated, as set forth in their respective charters. 21
(iv) When a city or town taxes any property and or portion of a property as set forth in 22
subsections (c)(1)(i) and (c)(1)(ii) of this section, the value of the taxable real property shall be 23
determined by the most recent full revaluation or statistical property update performed by the city 24
or town; provided, however, in the year any real property is first taxed, the value of the property 25
shall be determined by a valuation performed by the assessor for the purpose of determining an 26
initial assessed value of real property not previously taxed by the city or town, as of the most recent 27
date of assessment pursuant to § 44-5-1, subject to any and all rights to appeal under § 44-5-26. 28
(v) When a city or town taxes any property and or portion of a property pursuant to 29
subsection (c)(iii) of this section, such tax may be assessed and imposed effective December 31 in 30
the year the next update or valuation is performed in accordance with § 44-5-11.6 after the effective 31
date of this section, subject to any and all rights to appeal under § 44-5-26. 32
(vi) As used in this section, "nonprofit institution of higher education" means any 33
institution engaged primarily in education beyond the high school level, and "nonprofit hospital" 34
LC000700 - Page 15 of 16
means any nonprofit hospital licensed by the state and which is used for the purpose of general 1
medical, surgical, or psychiatric care and treatment. 2
(c)(d) Notwithstanding any other provision of law to the contrary, in an effort to provide 3
relief for businesses, including small businesses, and to promote economic development, a city, 4
town, or fire district may establish an exemption for tangible personal property within its 5
geographic limits by formal action of the appropriate governing body within the city, town, or fire 6
district, which exemptions shall be uniformly applied and in compliance with local tax 7
classification requirements. Exemptions established pursuant to this subsection shall conform to 8
the requirements of § 44-5-12.2. 9
SECTION 3. Provisions of nonprofit charters, general and special laws granted by the 10
general assembly are hereby replaced, and/or amended, retroactively and prospectively, to the 11
extent inconsistent with § 44-3-3(c). 12
SECTION 4. This act shall take effect upon passage. 13
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION
***
This act would place limitations on the tax-exempt real and personal property a nonprofit 1
college, university or hospital may hold. 2
This act would take effect upon passage. 3
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