The bill amends the General Laws regarding the levy and assessment of local taxes, specifically updating the tax classification system. It allows cities and towns to adopt a tax classification plan by ordinance after a comprehensive revaluation or update, with the plan adhering to limitations such as not exceeding a 50% difference in the effective tax rate applicable to any class, excluding class 4, except for specified areas. The bill defines property classes for tax purposes, introduces insertions clarifying the standard rate for Class 1, and deletes the provision allowing the city council of Providence to adopt various tax rates. Additional provisions are included for tax classification plans in certain towns.

Furthermore, the bill proposes new property classifications, including Class 1A for residential real estate with fewer than six dwelling units, Class 1B, Class 1C, 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, with specific multipliers of the Class 1 tax rate, and allows the city council of Providence to change the number of dwelling units included in Classes 1A, 1B, and 1C in any tax year following the adoption of a tax classification. The act would take effect upon passage.

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