Bill > H5782

This bill amends Rhode Island state law to include municipal detention facility corporations as a type of property that receives a special tax treatment where they are exempt from property taxation, but the municipality where the property is located will still receive a financial benefit. Specifically, the bill requires the state general assembly to annually appropriate an amount equal to 27% of the property taxes that would have been collected if the property were taxable. This means that while the municipal detention facility corporation won't pay full property taxes, the local municipality will still receive a significant portion of what would have been the tax revenue. The bill adds municipal detention facility corporations to an existing list of tax-exempt properties that already receive this treatment, such as nonprofit hospitals, institutions of higher education, and state-owned facilities. The amendment ensures that local governments are financially compensated for hosting these types of facilities, maintaining a fair revenue stream even when the properties are tax-exempt. The bill will take effect immediately upon its passage.

Budget and Finance

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