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 town of Little Compton a one-year exemption from the standard levy cap for fiscal year 2026. This exemption permits the town to levy a tax increase of up to twelve percent (12%), contingent upon approval by the Little Compton Financial Town Meeting. The existing structure of tax levy caps is maintained for other cities and towns, which are subject to gradually decreasing percentage increases over the fiscal years following 2007.

In addition to the new insertion, the bill retains the existing framework that outlines the maximum allowable tax increases for cities and towns, which are capped at 5.5% for fiscal year 2007, decreasing to 4% for fiscal year 2013 and beyond. The bill also includes provisions for exceeding these caps under specific circumstances, such as loss of non-property tax revenues or emergency situations, requiring certification from the Department of Revenue. Overall, the bill aims to provide Little Compton with temporary financial flexibility while maintaining the established tax levy regulations for other municipalities.

Statutes affected:
6362: 44-5-2