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 allows for the city to exceed the maximum tax levy based on additional revenue generated from the Class 2B tax rate exceeding $28.80 per $1,000 for fiscal year 2026. The bill establishes that the tax rate for Class 2B shall not exceed one and one-half (1.5) times the tax rate for Class 2A.

The new tax classification system includes definitions for various classes of property: Class 1A for residential real estate consisting of one dwelling unit, Class 1AB for residential real estate consisting of two to five dwelling units, and Class 2A for commercial real estate as defined by the Providence tax assessor. Class 2B is defined as Commercial II real estate, also as defined by the Providence tax assessor.

Additionally, the bill authorizes a homestead exemption within Classes 1A and 1B, and allows 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.

The legislation also requires 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, with these regulations taking effect beginning in fiscal year 2027.

This act would take effect upon passage.