Friday, June 30, 2023
Today, Mayor Smiley released the following statement as the Commercial Tax Legislation, introduced by Representative Nathan Biah and Senator Frank Ciccone and championed by the Smiley Administration, was signed into law by Governor Daniel McKee:
“This legislation is about fairness and leveling the playing field for Providence taxpayers, ensuring that every tenant that is obligated to pay property taxes does so, regardless of who owns the building. Through this legislation and our continuing PILOT negotiations, we are redefining the relationship between the City and these large nonprofits so Providence can stand on stronger financial ground, and better support the growth of these institutions.”
Currently, non-profits account for 44% of the land within the city of Providence and they continue to grow and expand. For years, large non-profits have been using their tax-exempt status to rent to other private businesses – from coffee shops to doctor’s offices – without being obligated to pay commercial property taxes. With this recently passed legislation, the tax burden will be shared more equitably.
The legislation would go into effect on January 1, 2024 and the City will undergo a fiscal review of these properties through the next year to ensure that any property that qualifies for taxation under this law is properly assessed.