Rhode Island 2026 Regular Session

Rhode Island Senate Bill S2552

Introduced

2/13/26

Refer

2/13/26

Caption

Increases the amount of state aid distributed to the towns and cities through appropriation in lieu of property tax provisions applicable to certain private and state properties that are exempt from property tax.

Impact

The intended effect of S2552 is to enhance the funds available to municipalities that house exempt properties, making it possible for local governments to better allocate public resources. The increase in state aid might mitigate some financial burdens faced by cities and towns due to lost revenue from property taxation. Additionally, while the bill primarily focuses on the financial aspect, it also reflects state recognition of the significant role that nonprofit educational and healthcare institutions play within their communities.

Summary

Bill S2552 proposes an amendment to the Rhode Island General Laws regarding state aid to towns and cities, specifically aimed at increasing the financial support distributed to municipalities in lieu of property taxes on certain exempted private and state properties. The bill seeks to adjust the current appropriation percentage for properties owned by nonprofit institutions of higher education and eligible healthcare facilities from 27% to 30%. This change intends to provide a higher level of financial support to local governments that might otherwise miss out on tax revenue from properties that are exempt from property tax obligations.

Contention

Potential points of contention might arise around the financial implications of the increased state aid on the overall state budget. Questions regarding sustainability of the raised appropriation amounts, especially during fiscal shortfalls, may be raised. Critics of the bill may argue that increasing appropriations without a clear funding source could lead to future budgetary issues. Furthermore, the amendment could spark discussions about the implications of providing increased financial support to tax-exempt entities versus the continued financial strain on local governments.

Companion Bills

No companion bills found.

Previously Filed As

RI H6291

Adds the property of the Pokanoket Management Group, Trustee of the Pokanoket Tribe Land Trust, to the list of property designated for appropriations in lieu of municipal property tax, would concurrently exempt such property from municipal property tax.

RI S1043

RI H6011

Removes state-owned property from property exempt from local property taxes.

RI S0028

Exempts from property taxation, the real and tangible personal property of the Providence Preservation Society.

RI H5369

Exempts from property taxation, the real and tangible personal property of the Providence Preservation Society.

RI S0497

Exempts from taxation the real and tangible personal property of the Center for Southeast Asians.

RI H6233

Exempts from taxation the real and tangible personal property of the Center for Southeast Asians.

RI S0032

Includes municipal detention facility corporations as exempt from taxation, and requires that an amount equal to 27% of all tax that would have been collected if the property was taxable be paid to the municipality annually.

RI H5782

RI H5270

Exempts from taxation the real and tangible personal property of the Friends of Little Compton Wellness Center, Inc.