Increases the amount of state aid distributed to the towns and cities through appropriation in lieu of property tax provisions applicable to certain private and state properties that are exempt from property tax.

Plain-English Summary

In Rhode Island, certain properties are exempt from property taxes — this includes state-owned buildings and properties belonging to some private organizations (like nonprofits or educational institutions). When these properties don't pay taxes, the towns and cities where they're located miss out on revenue they would otherwise collect. To help make up for this loss, the state sends money directly to those communities through a program called "payment in lieu of taxes" (often called PILOT).

This bill would increase the amount of state money sent to Rhode Island towns and cities through this PILOT program. Essentially, it would raise the payments the state makes to local governments to better compensate them for the property tax revenue they lose because of tax-exempt properties within their borders.

The communities most affected would be those that have a significant number of tax-exempt properties — such as cities and towns that host large universities, hospitals, state government buildings, or other nonprofit institutions. By receiving more state aid, these municipalities would have more funding available for local services like schools, roads, and public safety.

The bill has been referred to the Senate Finance Committee, where lawmakers will review the cost to the state budget and determine whether to move it forward. No final action has been taken yet.