The bill amends Section 44-5-2 of the General Laws regarding the levy and assessment of local taxes, specifically addressing the maximum tax levy that cities and towns can impose. The current law allows cities and towns to levy taxes at a rate not exceeding five and one-half percent (5.5%) above the previous year's amount through fiscal year 2007. The bill introduces a new structure for tax levies from fiscal years 2008 to 2013, gradually decreasing the allowable percentage increases from five and one-quarter percent (5.25%) in 2008 to four percent (4%) in 2013 and beyond. Additionally, it stipulates that certain conditions, such as loss of non-property tax revenues or emergency situations, may allow cities and towns to exceed these caps with appropriate certification and approval.

A significant insertion in the bill is the provision allowing the town of Little Compton a one-year exemption from the levy cap for fiscal year 2026, permitting a maximum increase of twelve percent (12%), contingent upon approval by the Little Compton Financial Town Meeting. This exemption is a notable deviation from the established levy limits and aims to provide the town with flexibility in its tax assessment for that fiscal year. The act will take effect upon passage, allowing for immediate implementation of these changes.

Statutes affected:
1095: 44-5-2