Authorizes a host city or town to impose a two percent (2%) tax on the endowment of a private institution of higher education that is in excess of one billion dollars ($1,000,000,000), to be used only for the host public school district.
Impact
The implementation of H5285 could significantly alter the landscape of public school funding in Rhode Island, especially in areas with large private colleges or universities. By allowing local governments to tax these wealthy endowments, the bill offers a potential infusion of financial resources into public schools, which are often underfunded. This could enhance educational programs, support faculty salaries, and improve facilities, ultimately benefiting local students and communities.
Summary
House Bill 5285 proposes the imposition of a tax by cities and towns on the endowments of private institutions of higher education, specifically targeting those with endowments exceeding one billion dollars. The tax rate is set at a maximum of two percent (2%) and is intended to generate revenue that would directly benefit the local public school districts in which these institutions are situated. This bill aims to create a new source of funding for education in municipalities that host significant private educational establishments.
Contention
Despite the potential benefits, the bill might face opposition from private educational institutions that may argue against being taxed on their endowments. Institutions could contend that such taxes detract from their ability to allocate funds for educational purposes and could create an adversarial relationship between local governments and higher education institutions. The discussions surrounding this bill will likely focus on the balance between the financial needs of public education and the operational autonomy of private colleges and universities.
Allocates, to the cities and towns of the state, a portion of state income taxes for new employees of not-for-profit healthcare institutions and private educational institutions.
Allocates, to the cities and towns of the state, a portion of state income taxes for new employees of not-for-profit healthcare institutions and private educational institutions.
Imposes an additional local hotel tax in the city of Newport, at a rate of two and one-half percent (2.5%) to be retained and used for its public infrastructure and resiliency purposes.
Imposes an additional local hotel tax in the city of Newport, at a rate of two and one-half percent (2.5%) to be retained and used for its public infrastructure and resiliency purposes.
Allows town and city councils to impose penalties for the violation of ordinances and regulations not exceeding the amount of one thousand dollars ($1,000).
Provides for an appropriation by the general assembly in the amount of two million dollars ($2,000,000) to the various school districts and municipalities to employ additional social workers.