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 a one-year exemption from the standard levy cap for fiscal year 2026. The new legal language inserted into the bill states that Providence may levy a tax not to exceed eight percent (8%) for that fiscal year, which is a significant increase compared to the typical caps that gradually decrease from five and one-half percent (5.5%) in fiscal year 2007 to four percent (4%) in fiscal year 2013 and beyond. This exemption is intended to provide financial flexibility to the city in response to specific fiscal needs.

Additionally, the bill includes provisions for monitoring compliance with the levy cap and allows cities and towns to exceed the specified percentage increases under certain circumstances, such as experiencing a loss in non-property tax revenues or facing emergency situations. The act is presented as enabling legislation in support of a resolution passed by the Providence City Council and signed by the Mayor, and it will take effect upon passage.

Statutes affected:
6162: 44-5-2