The bill amends Section 44-5-2 of the General Laws regarding the levy and assessment of local taxes, specifically introducing a new provision that allows the City of Providence a one-year exemption from the existing levy cap for fiscal year 2026, permitting a tax increase of up to eight percent (8%). This exemption is intended to provide financial flexibility to the city and is in response to a resolution passed by the Providence City Council and signed by the Mayor.

In addition to this insertion, the bill maintains the existing structure of tax levy caps for other cities and towns, which gradually decrease from a maximum of five and one-half percent (5.5%) in fiscal year 2007 to four percent (4%) in fiscal year 2013 and beyond. The bill also outlines conditions under which cities and towns may exceed these caps, such as experiencing a loss in non-property tax revenues or facing emergency situations. The act will take effect upon passage, allowing the City of Providence to implement the new levy cap for the specified fiscal year.

Statutes affected:
1041: 44-5-2