The bill amends Chapter 44-5 of the General Laws, which governs local tax levies and assessments, by introducing a new tax classification system specifically for the city of Providence. It establishes a maximum tax levy structure that allows Providence to exceed the maximum levy based on additional revenue generated from the Class 2B tax rate exceeding $28.80 per $1,000 for fiscal year 2026.

The bill revises the tax classification system, defining Class 1A as residential real estate consisting of one dwelling unit, and Class 1AB as residential real estate consisting of two to five dwelling units, land classified as open space, and dwellings on leased land including mobile homes. Class 2A is defined as commercial real estate, while Class 2B is defined as commercial II real estate, both as determined by the Providence tax assessor on an annual basis.

Additionally, the legislation allows for a homestead exemption within Classes 1A and 1B, and permits the city of Providence to divide these classes into non-owner dwelling units. The tax rate for Class 2B is capped at one and one-half times the tax rate for Class 2A.

The bill mandates that all real property be assessed at its full and fair cash value and includes provisions for the office of energy resources to promulgate regulations for determining the full and fair cash value for electricity generation facilities from natural gas with a gross capacity of forty megawatts (40 MW) or more, effective beginning in fiscal year 2027.

This act would take effect upon passage.