The bill amends Section 44-5-11.8 of the General Laws in Chapter 44-5, which deals with local tax assessment and levy, to allow cities and towns to adopt a tax classification plan by ordinance after a comprehensive revaluation or update. The plan must comply with limitations, such as not exceeding a 50% difference in the effective tax rate between classes, with exceptions for Providence, Glocester, and East Greenwich. The bill mandates that the same percentage rate change be applied to all classes from one year to the next, barring certain exceptions, and outlines the tax rates for motor vehicles and tangible personal property. Insertions in the bill specify the standard rate for Class 1 residential property, which can be divided into owner-occupied and non-owner-occupied with separate tax rates, and deletions remove the specific mention of the Providence city council's authority to adopt various tax rates, suggesting a broader or non-exclusive authority. Additional provisions are included for towns like Glocester, Middletown, Little Compton, Scituate, Coventry, East Greenwich, and New Shoreham to adopt or modify tax classification plans with conditions and effective dates.

The bill also proposes new property classifications, including Class 1A for certain residential real estate and open space, 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 tax rates for these classes, with Class 2 not exceeding twice the tax rate of Class 1, and Class 3 not exceeding three times the tax rate of Class 1. Additionally, the tax rate for Class 2 shall not be more than three and a half times the effective owner-occupied tax rate of Class 1. The Providence city council may change the number of dwelling units included in Classes 1A, 1B, and 1C after adopting such a tax classification. The act would take effect upon passage.

Statutes affected:
2857  as amended: 44-5-11.8
2857: 44-5-11.8