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HB 8192

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

2026 Regular Session Introduced by Megan Cotter and 5 co-sponsors

Rhode Island would tax private college endowments over $1B at 2% on the excess, with proceeds going to the host municipality to fund behavioral health staff in public schools.

05/07/2026 Committee recommended measure be held for further study
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Bill Summary · HB 8192

Summary of HB 8192 (Rhode Island, 2026)

Purpose and intent

  • Introduces a new tax on the endowments of private institutions of higher education.
  • Aims to generate revenue to support behavioral health staffing in public schools within the municipality where the private institution is primarily located.

Key provisions

  1. Tax on private higher-education endowments

    • Applies to endowments exceeding $1,000,000,000.
    • Tax rate: 2% on the portion of the endowment above $1,000,000,000.

  2. Use of tax revenues

    • All tax proceeds are deposited into a restricted receipt account.
    • Funds are disbursed to the municipality where the private institution is predominantly located.
    • Approved use: hire, retain, and support behavioral health staff in public schools (e.g., social workers, school psychologists, behavioral health specialists).

  3. Definitions

    • “Endowment”: A fund or source of funds (often from donations) whose investment income supports operations or programs of the private institution.
    • “Situated”: The municipality where the private institution is predominantly located or maintains a majority of its physical buildings/campus.

  4. Effective date

    • The act takes effect upon passage.

Who would be affected

  • Private institutions of higher education in Rhode Island with endowments over $1 billion.
  • Municipalities housing or hosting the dominant campus/operations of those institutions.
  • Public school districts within those municipalities, specifically in need of behavioral health staffing enhancements funded by the tax receipts.

Procedural and timeline aspects

  • Introduced: February 27, 2026.
  • Referred to House Finance.
  • Scheduled for hearing/consideration: May 7, 2026 (per action history).
  • Effective date: Upon passage (no delayed or phased-in period specified).

Potential impact and considerations

  • Revenue could support expanded behavioral health services in public schools, potentially addressing counselor, psychologist, and social work staffing shortages in affected districts.
  • The tax targets very large private endowments (>$1B), so the fiscal impact depends on how many institutions exceed the threshold.
  • Administration and compliance considerations would include:
    • Valuation of endowments for tax purposes.
    • Determination of “situated” municipality for receipt distribution (ensuring correct allocation).
    • Management of restricted receipts and oversight of fund disbursement to schools.

This summary provides the core purpose, provisions, affected parties, and procedural steps for HB 8192 as introduced in the Rhode Island General Assembly.

Compiled from official sources — confirm details with the bill’s official record.

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