The bill amends Section 44-5-2 of the General Laws regarding the levy and assessment of local taxes. It specifically allows the city of Providence to levy a tax in fiscal year 2026 that does not exceed seven percent (7%) above the total amount levied and certified by the city for the previous fiscal year. Additionally, it stipulates that residential properties located in Providence, with the exception of those registered as short-term rentals, shall be exempt from any increase in property taxes. The Providence city council is required to adopt appropriate measures to ensure compliance with this provision.

The bill does not alter existing regulations regarding tax levies for other cities and towns, which are subject to a gradual decrease in allowable percentage increases over the years, starting from five and one-half percent (5.5%) in fiscal year 2007 down to four percent (4%) in fiscal year 2013 and beyond. It includes provisions for cities and towns to exceed these caps under certain circumstances, such as loss of non-property tax revenues or emergency situations, provided that such increases are certified by the department of revenue and approved by the governing body of the city or town. The act will take effect upon passage.

Statutes affected:
5966: 44-5-2