The bill amends Chapter 44-5 of the General Laws, which governs local tax levies and assessments. It introduces a new tax classification system specifically for the city of Providence. The bill allows for a maximum tax levy structure that permits the city to exceed the maximum levy based on additional revenue generated from the Class 2B tax rate, which is capped at one and one-half times the tax rate for Class 2A properties.

The new classifications include Class 1A for residential real estate consisting of one dwelling unit, Class 1AB for residential real estate with two to five dwelling units, and Class 2A for commercial real estate as defined by the Providence tax assessor. Class 2B is designated for commercial II real estate, also defined by the Providence tax assessor. The bill allows for a homestead exemption within Classes 1A and 1B and provides flexibility in classifying non-owner occupied units.

Additionally, the bill mandates that all real property be assessed at its full and fair cash value. It includes provisions for the assessment of renewable energy resources, ensuring they are taxed as tangible property without affecting real property values. The Office of Energy Resources is tasked with promulgating regulations for assessing facilities for electricity generation from natural gas with a capacity of forty megawatts or more, starting in fiscal year 2027. The act will take effect upon passage.