Dam districts could dodge taxes on reservoir land

In Rhode Island, a proposal would give the Pascoag Reservoir Dam Management District and Wilson’s Reservoir Dam Management District a narrower kind of protection around the land they manage: fewer civil-liability worries on qualifying lake-bed property, and a route for Burrillville and Glocester to remove certain district-owned reservoir property from the tax rolls.

The bill does not broaden the districts’ mission. It focuses on the reservoir beds and the dam-related structures tied to Pascoag Reservoir, also known as Echo Lake, and Wilson’s Reservoir.

Where the tax break stops

The tax exemption would not happen automatically. Burrillville and Glocester would be authorized to adopt ordinances if they choose, and the relief would apply only to real and personal property owned by a dam management district under the chapter.

For Pascoag Reservoir, the covered property is the lake bed plus the dam, spillway and other appurtenant structures. For Wilson’s Reservoir, the bill points to the lake bed and the same kinds of structures, with the property described by local assessor map and lot numbers.

Who carries the risk

The other change is legal. The Pascoag and Wilson’s districts would be immune from civil liability for torts committed on lake-bed property they acquire, hold, use or lease.

That leaves towns with a local choice: give up some tax revenue, or keep the property on the books. The act would take effect upon passage.