Rhode Island Senate Bill S2092

Rhode Island 2024 Regular Session

• Introduced: 1/12/24
• Refer: 1/12/24
• Report Pass: 3/14/24
• Engrossed: 3/21/24
• Refer: 3/22/24
• Report Pass: 4/11/24
• Enrolled: 4/24/24
• Passed: 4/29/24

Caption

Exempts from taxation the real and tangible personal property of the Johnnycake Center Realty Corporation, a domestic nonprofit corporation, located in South Kingstown.

Impact

By exempting the Johnnycake Center Realty Corporation from property taxes, S2092 alters the state tax landscape, specifically by reducing the overall tax burden on nonprofit entities engaged in serving community needs. This legislation is particularly significant for local entities aiding in food security, health services, and community development. Proponents argue that by supporting nonprofit organizations, the bill fosters a more robust local economy, as these organizations often reinvest savings into community programs and services.

Summary

Senate Bill S2092 proposes to exempt the real and tangible personal property of the Johnnycake Center Realty Corporation, a domestic nonprofit organization located in South Kingstown, from taxation. This exemption targets properties owned by nonprofit organizations, recognizing their contributions to community services and economic engagement without the burden of property taxes. The legislation is designed to ease financial constraints on such organizations, potentially allowing them to allocate more resources towards their philanthropic missions.

Contention

However, the bill has faced discussions regarding its implications on tax equity and fairness. Critics may argue that tax exemptions for specific nonprofits could lead to uneven revenue generation for municipalities, thereby straining local budgets. There are concerns that it could set a precedent for further exemptions that may hinder the capacity of cities and towns to fund essential services. Balancing support for nonprofits while ensuring local governments retain sufficient resources is a point of contention in the legislative discourse surrounding S2092.