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Bill

SB 2036

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

2026 Regular Session Introduced by Walter Felag and 2 co-sponsors

Expands and clarifies property tax exemptions for government, nonprofit, and certain facilities, while outlining for-profit hospital valuation rules and local tangible personal pro

06/24/2026 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · SB 2036

Overview

  • Bill: SB 2036
  • Session: 2026
  • Jurisdiction: Rhode Island
  • Topic: Taxation – Property Subject to Taxation
  • Purpose: To revise property tax exemptions and related provisions, including adding a specific exemption for Blithewold, Inc. and clarifying certain tax treatment for government, nonprofit, and for-profit hospital properties, among other exemptions and administrative tools.

Main Purpose and Intent

  • Expand and clarify exemptions from property taxation for a wide range of properties, primarily owned by government entities, nonprofit organizations, and certain special-purpose facilities.
  • Introduce, codify, or adjust exemptions to support religious, educational, charitable, cultural, and environmental objectives, as well as open-space preservation and economic development.
  • Create flexibility for local governments to grant exemptions for tangible personal property to promote business growth, subject to local action and compliance rules.

Key Provisions and Changes

  • Section 44-3-3 (a): Amends the list of property exempt from taxation. Notable items include:
    • State and U.S. lands, bonds, and securities.
    • Real estate used exclusively for military purposes by national guard or related organizations.
    • Buildings for free public schools, religious worship, and related surrounding land (up to 5 acres).
    • Dwellings and land for religious organizations used by clergy, with Charlestown carve-out.
    • Intangible property for religious/charitable purposes.
    • Educational institutions, religious orders, and related land/buildings with specific acreage limits (e.g., up to 1 acre for certain religious/educational uses; Smithfield memorandum provision regarding police/fire services for a private school).
    • Various nonprofit organizations and facilities (libraries, veterans’ organizations, fraternal organizations, volunteer fire/ambulance corps, and others) with detailed lists of eligible entities and properties.
    • Specific exemptions for renewable energy resources used in residential systems and for manufacturers.
    • Hydroelectric equipment and certain open-space conservancies (local authorization required in some cases).
    • Numerous named organizations and facilities in East Providence, Bristol, Pawtucket, Woonsocket, Charleston, and other communities.
    • Standalone exemptions for particular properties (e.g., stadium, lighthouse, theater, and arts organizations) with exact parcel descriptions.
  • Section 44-3-3 (b): For-profit hospitals and conversion scenarios
    • When a hospital facility is for-profit, its real and personal property valuation follows a staged approach:
    • Use most recent full revaluation for for-profit status changes, with initial valuation by the local assessor if/when conversion occurs.
    • Right of appeal process to local assessor and then to the RI Superior Court.
    • Stabilization agreements possible under existing laws; levy considerations during conversion year do not count toward maximum levy.
  • Section 44-3-3 (c): Local exemptions for tangible personal property
    • City/town/fire district may establish local exemptions for tangible personal property, in line with 44-5-12.2, to support economic development and business relief.
  • Section 2: Effective date
    • Takes effect upon passage.
  • Explanation (printed in the bill)
    • Notes the specific exemption for Blithewold, Inc. (101 Ferry Road, Bristol).

Affected Parties and Impacts

  • Government and nonprofit entities: Broad exemptions continue or expand, reducing tax revenue from properties used for religious, educational, cultural, veterans’, health, and community services.
  • For-profit hospitals: New/clarified valuation approach during conversion or establishment to determine levy exposure.
  • Local governments: Additional tools to grant local tangible personal property exemptions to spur economic development; must follow applicable procedures and classifications.
  • Specific facilities and organizations: Numerous named properties and organizations across Rhode Island would gain or confirm exemption status if the bill becomes law (e.g., Blithewold, Stadium Theatre, various East Providence entities, libraries, arts groups, and more).

Procedural and Timeline Aspects

  • Introduced January 9, 2026, referred to Senate Housing & Municipal Government.
  • Committee history: Held for further study (March 5, 2026), scheduled for consideration (May 12, 2026).
  • If enacted, provisions take effect upon passage.

Note: The bill primarily codifies and expands exemptions, with targeted changes to hospital valuations and local exemption authority.

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

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