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 the authority to set different tax rates for various classes of property, including residential real estate, commercial and industrial real estate, and properties with mixed uses. The city council is authorized to implement a homestead exemption within Class 1A and modify the classification of dwelling units.

A significant addition to the bill is the provision that permits the city council to adopt higher tax rates for the marginal value of residential properties valued in excess of one million dollars ($1,000,000) per dwelling unit. These higher rates may be organized into progressive brackets. Additionally, properties occupied by taxpayers below a certain income level may be exempt from these higher rates. Any additional revenue generated from these higher rates will be exempt from the four percent (4%) levy growth cap established pursuant to 44-5-2. The act will take effect upon passage.

Statutes affected:
1114: 44-5-11.18