The bill amends Section 44-5-2 of the General Laws regarding the levy and assessment of local taxes, specifically allowing the city of Providence to exceed the established tax levy caps for fiscal year 2026. The current law outlines a gradual reduction in the allowable percentage increase in tax levies over several fiscal years, starting from a maximum of 5.5% in fiscal year 2007 and decreasing to 4% in fiscal year 2013 and beyond. The bill introduces new legal language that permits Providence to exceed these limits specifically for fiscal year 2026, which is a significant deviation from the existing framework.

In addition to the insertion of the provision allowing Providence to exceed the levy cap, the bill maintains the existing structure of tax levy limits and the conditions under which a city or town may exceed these limits due to emergencies, loss of non-property tax revenues, or substantial growth in the tax base. The act is set to take effect upon passage, emphasizing the urgency of the measure for the city's fiscal planning.