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.)

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