The bill amends Chapter 44-5 of the General Laws, focusing on the levy and assessment of local taxes. It introduces a new maximum tax levy structure for the city of Providence, allowing it to exceed the maximum levy under specific conditions related to the Class 2B tax rate for fiscal year 2026. The bill establishes a new tax classification system for Providence, which includes various property classes such as Class 1A (residential real estate with one dwelling unit), Class 1AB (residential real estate with two to five dwelling units), Class 2A (commercial I real estate), and Class 2B (commercial II real estate). The tax rate for Class 2B properties is capped at one and one-half times that of Class 2A properties.

Additionally, the bill 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. It 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 of electricity generation facilities from natural gas with a capacity of forty megawatts or more, effective beginning in fiscal year 2027. The act will take effect upon passage.