WeVote
Log In

Bill

Bill

SB 2073

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

2026 Regular Session Introduced by Sam Bell

The bill expands and clarifies property tax exemptions for many nonprofits and specific entities, adds local authority to grant tangible personal property exemptions to spur develo

06/24/2026 Effective without Governor's signature
0
WeVote Research Nonpartisan
Bill Summary · SB 2073

Summary of SB 2073 (Rhode Island, 2026)

Purpose and Intent

SB 2073, introduced by Senator Samuel W. Bell, amends the list of property exemptions under Rhode Island law to clarify and expand exemptions from taxation for various types of real and personal property. The bill also creates a framework for local governments to grant new exemptions for tangible personal property to promote economic development. The act takes effect upon passage and applies retroactively to January 1, 2026.

Key Provisions and Changes

  • Section 44-3-3 – Expanded exemptions list (a)(1) through (95): The bill enumerates an extensive schedule of properties that are exempt from property tax. The exemptions cover:

    • State and federal lands, securities, and military properties.
    • Religious, educational, and charitable organizations (including buildings used for worship and schools, certain clergy residences, and related lands up to specified acreage or minimum lot sizes).
    • Intangible property used for religious or charitable purposes.
    • Properties owned by nonprofit organizations (including libraries, veterans’ organizations, fraternal organizations, and various Rhode Island charities) used for educational, religious, charitable, or community purposes.
    • Specific named facilities and institutions (e.g., Providence Performing Arts Center, Stadium Theatre, Mount Saint Charles Academy, La Salle Academy, various community programs, and numerous hospitals or health-related organizations in limited contexts).
    • Manufacturing-related exemptions (machinery, equipment, and inventory) under defined conditions, including prorated exemptions when used for both manufacturing and research/development/QA.
    • Renewable energy resources used in residential systems or by manufacturers.
    • Special exemptions for open-space conservation organizations, and for certain long-standing exemptions subject to local approvals.
    • Special provisions allowing local councils to grant exemptions for real or personal property of certain organizations (subject to local ordinances).

  • Section 44-3-3 – For-profit hospital treatment of valuation (b): When a city or town taxes a for-profit hospital, the property valuation follows specific procedures, including:

    • Valuation based on the most recent full revaluation, unless a conversion to for-profit occurs, in which case initial valuation follows a targeted assessor’s valuation method.
    • Right of appeal to the local tax assessor and, if necessary, to the Rhode Island Superior Court Business Calendar.
    • Stabilization agreements may apply in certain cases, and tax levy considerations for such facilities may be partially excluded from calculating the maximum levy in the year of conversion.

  • Section 44-3-3 – Local exemptions for tangible personal property (c): Localities may establish exemptions for tangible personal property to aid small businesses and economic development, provided they follow uniform application and meet § 44-5-12.2 requirements.

Who Would Be Affected

  • Entities currently claiming exemptions under 44-3-3 (numerous nonprofit organizations, libraries, social services, cultural institutions, and healthcare-related facilities) may gain expanded or clarified exemption coverage, depending on the bill’s provisions and local interpretation.
  • For-profit hospital facilities undergoing conversion or newly established for-profit facilities could see valuation and levy treatment changes in year of transition.
  • Local governments would gain authority to grant new tangible personal property exemptions to spur economic development, subject to procedural requirements.

Procedural and Timeline Aspects

  • Introduced January 16, 2026.
  • Referred to Senate Housing & Municipal Government.
  • Committee recommended holding the measure for further study (March 5, 2026).
  • Scheduled for consideration in May 2026; action history indicates ongoing committee review.
  • Effective date: upon passage, retroactive to January 1, 2026.

Additional Notes

  • The bill’s explanation specifically notes a retroactive exemption for Community MusicWorks in Providence, highlighting targeted, specific exemptions as part of the act’s scope.

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

Sign in to ask a question.