Rhode Island governor seeks to tax 'non-mission essential' hospital properties

Rhode Island Gov. Gina Raimondo wants to give cities and towns the ability to tax "non-mission essential" properties owned by nonprofit colleges and hospitals, according to a WPRI-TV report.

The idea is part of the governor's proposed $9.9-billion budget for the fiscal year that begins July 1.

The budget also reportedly lowers funding for the Payment in Lieu of Taxes program, which compensates municipalities for property tax revenue lost due to non-taxable properties. The proposed budget would cut $5 million from PILOT funding.

State officials said allowing cities and towns to tax properties owned by nonprofit hospitals and colleges would help offset the lower PILOT funding, according to WPRI-TV. But they said that cities and towns would have to do more work to determine whether a property is "non-mission essential" and would have to sign off on a new tax.

 

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