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H8192 • 2026

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION (Provides a tax upon the endowment of a private institution of higher education equal to two percent (2%) upon each dollar over $1,000,000,000.)

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION (Provides a tax upon the endowment of a private institution of higher education equal to two percent (2%) upon each dollar over $1,000,000,000.)

Education Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Morales, Sanchez, Giraldo, Cruz, Potter, Cotter
Last action
2026-05-07
Official status
Committee recommended measure be held for further study
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION (Provides a tax upon the endowment of a private institution of higher education equal to two percent (2%) upon each dollar over $1,000,000,000.)

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION (Provides a tax upon the endowment of a private institution of higher education equal to two percent (2%) upon each dollar over $1,000,000,000.)

What This Bill Does

  • AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION (Provides a tax upon the endowment of a private institution of higher education equal to two percent (2%) upon each dollar over $1,000,000,000.)

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-05-07 Committee

    Committee recommended measure be held for further study

  2. 2026-05-01 Rhode Island General Assembly

    Scheduled for hearing and/or consideration (05/07/2026)

  3. 2026-02-27 Rhode Island General Assembly

    Introduced, referred to House Finance

Official Summary Text

AN ACT RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION (Provides a tax upon the endowment of a private institution of higher education equal to two percent (2%) upon each dollar over $1,000,000,000.)

Current Bill Text

Read the full stored bill text 
H8192

2026 -- H 8192
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LC005665
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

Introduced By:
Representatives Morales, Sanchez, Giraldo, Cruz, Potter, and Cotter

Date Introduced:
February 27, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is
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hereby amended by adding thereto the following section:
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44-3-70. Imposition of tax on higher education private institution endowments.

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(a) There is hereby imposed a tax upon the endowment of a private institution of higher
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education with an endowment in excess of one billion dollars ($1,000,000,000). This tax shall be
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in an amount equal to two percent (2%) upon each dollar or dollar value within the endowment in
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excess of one billion dollars ($1,000,000,000).
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(b) All tax revenues collected pursuant to the provisions of this section shall be deposited
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into a restricted receipt account.
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(c) The funds in the restricted receipt account shall be disbursed to the municipality where
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the private institution of higher education is situated. These funds shall be used expressly to hire,
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retain, and support behavioral health staff within the public schools of the municipality, which staff
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shall include, but not be limited to, social workers, school psychologists, and behavioral health
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specialists.
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(d) As used in this section, the following terms shall have the following meanings:
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(1) “Endowment” means a fund or source of funds, much of which consists of donations
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of money or property to the private institution of higher education, which uses the resulting
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investment income for a purpose, or to be used for operations or programs of the private institution.
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(2) “Situated” means the municipality where the private institution is predominantly

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located or maintains a majority of its physical buildings, including, but not limited to, a campus.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION
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This act would provide for a tax upon the endowment of a private institution of higher
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education equal to two percent (2%) upon each dollar or dollar value within the endowment in
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excess of one billion dollars ($1,000,000,000). These funds would be used to hire, retain, and
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support behavioral health staff within the public schools of the municipality where the private
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institution is predominantly located.
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This act would take effect upon passage.
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LC005665
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LC005665 - Page 3 of 3