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 increase its tax levy by up to seven percent (7%) in fiscal year 2026 compared to the previous fiscal year. This is a significant change from the existing tax levy caps, which gradually decrease the allowable percentage increase 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. Additionally, the bill stipulates that residential properties in Providence, with the exception of those registered as short-term rentals, will be exempt from any increase in property taxes.

The bill also includes provisions for monitoring compliance with the levy cap by the division of property valuation in the department of revenue, and it outlines circumstances under which a city or town may exceed the specified percentage increases, such as experiencing a loss in non-property tax revenues or facing emergency situations. The new legal language inserted into the bill emphasizes the specific provisions for Providence, while the existing language regarding tax levy caps for other cities and towns remains largely intact, with the exception of the new exemptions and allowances for Providence. The act will take effect upon passage.