Bill > S1115

This bill establishes a new framework for billing nonprofit colleges and universities in Providence for municipal services if they do not reach a memorandum of agreement with the city for increased payments. Specifically, the bill requires these institutions to pay the actual costs of municipal services (including police, fire, and rescue services) provided to their properties or properties where their students reside, starting October 1, 2026. The legislation introduces a "memorandum payments baseline" concept, which calculates a base payment amount using fiscal year 2024-2025 data and allows for annual increases based on inflation or 3%, whichever is greater. If a college or university fails to meet this baseline payment, they will be subject to a tax equal to 10% of their total revenue from the prior fiscal year. The bill provides flexibility for the municipality to potentially increase this tax rate through local ordinance. The purpose appears to be ensuring that nonprofit educational institutions contribute fairly to the costs of municipal services they consume, creating a mechanism to compel negotiations and financial contributions from these tax-exempt organizations.

Housing and Urban Affairs

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