AN ACT RELATING TO TOWNS AND CITIES -- STATE AID

This bill amends Rhode Island state law to allow federal Department of Defense facilities, such as Naval Station Newport, to receive state payments in lieu of property taxes. It recognizes that these large military installations impose significant costs on local municipalities for services like police, fire protection, and infrastructure maintenance. The state would provide a payment equal to 27% of the property taxes that would have been collected if the land were taxable, matching the existing support given to certain nonprofit hospitals and universities. This change aims to ensure that towns hosting federal military bases receive financial compensation for the public services required to support them.