The bill amends Section 44-5-11.18 of the General Laws in Chapter 44-5, allowing the city of Providence to adopt a tax classification system with unrestricted tax rates. This system categorizes properties into various classes, including residential real estate (with subdivisions based on the number of dwelling units), commercial and industrial real estate, and properties with mixed residential and commercial uses. The city is also authorized to implement a homestead exemption within Class 1A and to adjust the classification of dwelling units over time. Additionally, the tax rate for commercial properties (Class 2) is capped at two times the base tax rate of Class 1A, with further provisions for apportioning tax rates based on property characteristics.

A significant insertion in the bill allows the Providence city council to adopt higher tax rates for residential properties valued over one million dollars per dwelling unit, which can be structured into progressive brackets. Properties occupied by taxpayers below a certain income level may be exempt from these higher rates. Furthermore, any additional revenue generated from these elevated rates will not be subject to the existing four percent levy growth cap. The act is set to take effect upon passage.

Statutes affected:
1114: 44-5-11.18