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House approves tax exemption for Pawtucket advocacy center after debate over nonprofit finances
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Summary
The Rhode Island House on March 3 approved House Bill 7373, exempting the Blackstone Valley Advocacy Center's property in Pawtucket from taxation by a 65-7 vote after members debated whether well-funded nonprofits should receive municipal property-tax exemptions and whether the state should review exemptions more closely.
The Rhode Island House of Representatives on March 3 approved House Bill 7373, exempting the Blackstone Valley Advocacy Center’s real and intangible property in the city of Pawtucket from local property taxation. Chairman Casey moved passage and the clerk recorded 65 votes in favor and 7 opposed, after roughly an hour of floor debate.
Supporters said the exemption responds to a local request and recognizes a long-standing service provider. Representative Cruz, who said she had lived in the center’s shelter when she was 19, told colleagues: "They've been doing this work for over 30 years." She described the center’s shelters and advocacy services and urged members to back the local request.
Opponents and skeptical members raised questions about the financial status of some nonprofits and the cumulative effect of exemptions on municipal tax bases. Representative Santucci said he reviewed the organization's 2024 Form 990 and cited "gross receipts of $3,100,000," adding that the group "ended the year with a $694,360 profit" and that, "we have to have a more thoughtful process" for issuing exemptions that remove property from local rolls.
Representative Newberry and others cautioned that removing commercial parcels from tax rolls shifts costs to homeowners and stressed that the House should scrutinize requests that affect municipal revenue. Representative Carson asked whether there is any ongoing review to confirm that organizations granted exemptions continue to operate in the public interest: "Do we know that all these organizations that are currently tax exempt are really still tax exempt?" she asked.
Lawmakers offering context said the General Assembly’s practice is to act only when a city or town council forwards a resolution of support; Speaker Kaye Joseph Shikachi noted that the city of Pawtucket had done so in this case. Representative Tansy cited reductions in federal VOCA grant funding for the state — noting that VOCA support had declined from about $11,000,000 to $3,000,000, a loss she described as roughly $8,000,000 — and said that diminished federal funding can change nonprofit financial pictures and that the committee process provides opportunities for vetting.
After debate, the clerk opened the electronic vote and the bill passed, with the Speaker announcing "the act prevails." The House then proceeded to adopt several ceremonial resolutions and closed its session for the day.
The immediate effect of HB 7373 is a state-authorized local property-tax exemption for the Blackstone Valley Advocacy Center in Pawtucket. Questions raised on the floor about the adequacy of state-level review and the cumulative municipal impact of property-tax exemptions indicate the issue may surface again in committee or through legislative requests to refine the exemption process.
