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Bill > H7461


RI H7461

RI H7461
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.


summary

Introduced
01/30/2026
In Committee
01/30/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

This act would include municipal detention facility corporations as exempt from taxation under state law, and require the general assembly to appropriate, annually, for payment to the city or town where the property is located a sum equal to twenty-seven percent (27%) of all tax that would have been collected if the property was taxable. This act would take effect upon passage.

AI Summary

This bill amends existing state law to grant tax exemption to municipal detention facility corporations, which are entities established by municipalities to operate detention facilities. As a result of this exemption, these facilities will no longer pay property taxes. However, the bill mandates that the state's General Assembly will annually appropriate and pay to the municipality where such a facility is located an amount equal to 27% of the property taxes that would have been collected if the property were still taxable. This provision aims to provide some financial compensation to municipalities for the loss of tax revenue due to the exemption. The bill also clarifies that this payment is in lieu of property taxes and takes effect immediately upon its passage.

Committee Categories

Budget and Finance

Sponsors (3)

Last Action

Introduced, referred to House Finance (on 01/30/2026)

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