Woonsocket Radio News Room

 

House passes Rep. Biah’s bill that would tax certain nonprofit properties

 

            STATE HOUSE – The House of Representatives has passed legislation (2023-H 5782A) sponsored by Rep. Nathan W. Biah (D-Dist. 3, Providence) which would tax property owned by nonprofit institutions that is leased or occupied by for-profit persons and entities.

            “While our state’s nonprofit organizations provide valuable and vital services to Rhode Island’s residents and visitors, not all of the property that they own is utilized for the nonprofits’ missions for the public good.  And if a piece of property is not being used in service of the nonprofit’s mission, then it should be taxed appropriately like every other business or individual in the state.  This bill is about economic fairness for the taxpayers and needed revenue as we face financial uncertainty,” said Representative Biah.

            The legislation states that any real and personal property (or portion thereof) of a health care facility, and/or any parent corporation, operator, manager or subsidiary thereof, or of an institution of higher education, that would otherwise be exempted from property taxation that is leased to, subleased to, occupied or used by an entity, organization, or individual that is not itself exempted from property taxation shall be taxed to the tenant, who, for the purposes of taxation is deemed the owner.

            Representative Biah notes that 44 percent of property in Providence is owned by nonprofits and is not taxed at normal individual and commercial rates.

            The bill now heads to the Senate for consideration where Sen. Frank A. Ciccone (D-Dist. 7, Providence, Johnston) has introduced the legislation (2023-S 0924).

 

 

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