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SB 2123

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

2026 Regular Session Introduced by Jonathon Acosta and 3 co-sponsors

The bill broadens property tax exemptions, adds local options for tangible personal property, and grants a new exemption for the Blackstone Valley Advocacy Center.

06/24/2026 Effective without Governor's signature
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Bill Summary · SB 2123

Summary of SB 2123 (Rhode Island, 2026)

Purpose and intent

  • This act amends the property tax exemptions in Rhode Island’s General Laws to clarify and expand exemptions and to allow local jurisdictions to establish new exemptions for tangible personal property. A specific, concrete change is the exemption of the real and tangible personal property of the Blackstone Valley Advocacy Center in Pawtucket. The bill takes effect upon passage.

Key provisions and changes

  • 44-3-3 exemptions (existing list of exemptions) is retained and clarified. The bill largely preserves the long list of organizations and property types already exempt from property taxation (state properties, lands owned by the U.S., religious and educational facilities, veterans’ and fraternal organizations, libraries, hospitals in various contexts, 501(c)(3) nonprofits, etc.).

  • Notable included or reaffirmed exemptions (from the lengthy enumerated list) cover:

    • Properties used for religious, educational, charitable, veterans, fraternal, and cultural purposes.
    • Certain nonprofit organizations’ real and personal property.
    • Specific exemptions for manufacturing machinery and equipment acquired after certain dates, renewable energy resources in certain contexts, and pollution-control facilities, subject to compliance conditions.
    • Exemptions for tangible personal property related to recycling, hazardous-waste treatment operations (with director’s order certifying function), and other defined uses.
    • Special local exemptions may be adopted by city or town councils to promote economic development (subsection (c)).

  • For-profit hospitals: The bill retains a framework where for-profit hospital property would be valued based on recent full revaluations unless the facility is newly converted or established; in such cases, the initial assessed value is determined by the local assessor, with appeal rights to the Superior Court’s business calendar. Stabilization agreements with municipalities are possible and would not count toward the annual levy in the year of conversion/establishment for purposes of the levy cap.

  • Local option exemptions (subsection (c)): Cities, towns, or fire districts may establish exemptions for tangible personal property within their jurisdiction through formal action, subject to uniform application and compliance with local tax classification requirements.

Who/what is affected

  • A broad set of property owners could be affected, including:
    • State and federal property, religious and educational institutions, veterans and fraternal organizations, libraries, hospitals, and numerous nonprofit organizations listed in the expansive schedule.
    • Businesses and manufacturers (through exemptions for manufacturing machinery/equipment and renewable energy resources in certain contexts).
    • Local governments and fire districts (via potential local exemptions to bolster economic development).
    • The Blackstone Valley Advocacy Center in Pawtucket specifically receives an exemption from taxation as a new provision.

Procedural and timeline aspects

  • Introduced January 16, 2026.
  • Referred to Senate Housing & Municipal Government.
  • Schedule: The measure was set for consideration in May 2026, with committee activity in early 2026 indicating ongoing review.
  • Effective date: Take effect upon passage.

This summary focuses on the substantive changes and potential fiscal- and policy-related impacts stemming from SB 2123, including the targeted exemption for Blackstone Valley Advocacy Center and the inserted local-exemption authority for economic development.

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

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