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| 5 | 5 | | 2025 -- S 0778 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC000820 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION |
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| 16 | 16 | | Introduced By: Senator Tiara T. Mack |
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| 17 | 17 | | Date Introduced: March 14, 2025 |
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| 18 | 18 | | Referred To: Senate Finance |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is 1 |
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| 23 | 23 | | hereby amended by adding thereto the following section: 2 |
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| 24 | 24 | | 44-3-70. Imposition of tax on higher education private institution endowments. 3 |
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| 25 | 25 | | (a) There is hereby imposed a tax upon the endowment of a private institution of higher 4 |
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| 26 | 26 | | education with an endowment in excess of one billion dollars ($1,000,000,000). This tax shall be 5 |
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| 27 | 27 | | in an amount equal to two percent (2%) upon each dollar or dollar value within the endowment in 6 |
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| 28 | 28 | | excess of one billion dollars ($1,000,000,000). 7 |
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| 29 | 29 | | (b) All tax revenues collected pursuant to the provisions of this section shall be deposited 8 |
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| 30 | 30 | | into a restricted receipt account. 9 |
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| 31 | 31 | | (c) The funds in the restricted receipt account shall be disbursed to the municipality where 10 |
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| 32 | 32 | | the private institution of higher education is situated. These funds shall be used expressly to hire, 11 |
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| 33 | 33 | | retain, and support behavioral health staff within the public schools of the municipality, which staff 12 |
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| 34 | 34 | | shall include, but not be limited to, social workers, school psychologists, and behavioral health 13 |
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| 35 | 35 | | specialists. 14 |
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| 36 | 36 | | (d) As used in this section, the following terms shall have the following meanings: 15 |
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| 37 | 37 | | (1) “Endowment” means a fund or source of funds, much of which consists of donations 16 |
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| 38 | 38 | | of money or property to the private institution of higher education, which uses the resulting 17 |
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| 39 | 39 | | investment income for a purpose, or to be used for operations or programs of the private institution. 18 |
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| 40 | 40 | | (2) “Situated” means the municipality where the private institution is predominantly 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC000820 - Page 2 of 3 |
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| 44 | 44 | | located or maintains a majority of its physical buildings including, but not limited to, a campus. 1 |
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| 45 | 45 | | SECTION 2. This act shall take effect upon passage. 2 |
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| 46 | 46 | | ======== |
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| 47 | 47 | | LC000820 |
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| 50 | 50 | | |
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| 51 | 51 | | LC000820 - Page 3 of 3 |
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| 52 | 52 | | EXPLANATION |
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| 53 | 53 | | BY THE LEGISLATIVE COUNCIL |
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| 54 | 54 | | OF |
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| 55 | 55 | | A N A C T |
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| 56 | 56 | | RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION |
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| 57 | 57 | | *** |
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| 58 | 58 | | This act would provide for a tax upon the endowment of a private institution of higher 1 |
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| 59 | 59 | | education equal to two percent (2%) upon each dollar or dollar value within the endowment in 2 |
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| 60 | 60 | | excess of one billion dollars ($1,000,000,000). These funds would be used to hire, retain, and 3 |
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| 61 | 61 | | support behavioral health staff within the public schools of the municipality where the private 4 |
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| 62 | 62 | | institution is predominantly located. 5 |
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| 63 | 63 | | This act would take effect upon passage. 6 |
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| 64 | 64 | | ======== |
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| 65 | 65 | | LC000820 |
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