The bill amends Section 44-5-11.8 of the General Laws in Chapter 44-5, concerning the "Levy and Assessment of Local Taxes," to allow cities and towns to adopt a tax classification plan by ordinance after a comprehensive revaluation or update. The plan must follow certain limitations, such as the designated classes of property being limited to those defined in subsection (b), and the effective tax rate for any class, excluding class 4, not exceeding 50% of the rate applicable to any other class, with specific exceptions for the city of Providence and the towns of Glocester and East Greenwich. Additionally, the bill states that any tax rate changes from one year to the next must apply the same percentage rate change to all classes, excluding class 4, except in the specified exceptions. The bill includes insertions, such as specifying the owner-occupied rate as the standard for class 1 properties, and deletions, like removing the mention of the city council of Providence from a section allowing the town councils of Glocester and East Greenwich to adopt tax rates on various classes as deemed appropriate.

Furthermore, the bill proposes new property classifications, including Class 1A for residential real estate with fewer than six dwelling units, Class 1B for residential real estate with six to ten dwelling units, Class 1C for residential real estate with more than ten dwelling units, Class 2 for commercial and industrial real estate, Class 3 for mixed-use properties, and Class 4 for all ratable, tangible personal property. It sets limits on the tax rates for these classes, stating that the tax rate for Class 2 shall not exceed twice the tax rate of Class 1, and the tax rate for Class 3 shall not exceed three times the tax rate of Class 1. Additionally, the city council of Providence may change the number of dwelling units included in Classes 1A, 1B, and 1C in any tax year following the adoption of such a tax classification. The act would take effect upon passage.

Statutes affected:
7652  SUB A: 44-5-11.8
7652: 44-5-11.8