The bill amends Chapter 44-5 of the General Laws, which governs local tax levies in Providence, by introducing new provisions that allow the city to exceed the maximum tax levy for fiscal year 2026 based on additional revenue from the Class 2B tax rate. This new provision is defined by the inserted language that clarifies the meanings of "Class 2A" and "Class 2B" as per § 44-5-11.18(1)(ii). The bill also outlines the maximum allowable tax levy increases for cities and towns from fiscal years 2008 to 2013, with a gradual decrease in percentage increases each year, while allowing exceptions for municipalities facing revenue losses or emergencies. Compliance monitoring by the division of property valuation and municipal finance is emphasized to ensure adherence to the levy cap.

Additionally, the bill introduces a new tax classification system for Providence, including the creation of Class 1A for single-dwelling residential properties and Class 2B for commercial real estate, while deleting previous restrictions on tax rates for Classes 2 and 3. It modifies existing classifications, such as changing the criteria for Class 1AB from "fewer than six" to "two to five" dwelling units, and allows separate tax rates for owner-occupied and non-owner-occupied properties within certain classes. The bill mandates that property assessments be conducted at full and fair cash value, with specific exemptions and regulations for new constructions and renewable energy facilities. Overall, the act aims to enhance tax classification flexibility and streamline the taxation process in Providence.