The bill amends the General Laws in Chapter 44-5, Section 44-5-11.8, which deals with local tax assessment and classification. It allows cities and towns to adopt a tax classification plan by ordinance after a comprehensive revaluation or update, with the plan adhering to limitations on the effective tax rate differences between classes. The amendment specifies that the tax rate for tangible personal property (Class 3) cannot be more than twice the rate of any other class, with certain exceptions. It also requires that any changes in tax rates from one year to the next apply the same percentage change to all classes, with some exceptions for specific locations. The bill defines four property classes and includes insertions that set the owner-occupied rate in Class 1 as the standard for determining the maximum rate for other classes, except in Glocester and Providence. It also removes language specific to Providence's city council and allows town councils in Glocester and East Greenwich to set tax rates with restrictions on rate differences.

Furthermore, the bill introduces new property classifications for Providence, including Class 1A for residential real estate with fewer than six dwelling units, Class 1B for six to ten dwelling units, Class 1C for more than ten dwelling units, Class 2 for commercial and industrial real estate, Class 3 for mixed-use properties, and Class 4 for all ratable tangible personal property. It sets limits on the tax rates for these classes, with Class 2 not exceeding twice the rate of Class 1, and Class 3 not exceeding three times the rate of Class 1. The bill also allows the city council of Providence to change the number of dwelling units in Classes 1A, 1B, and 1C in any tax year following the adoption of a tax classification. The act would take effect upon passage.

Statutes affected:
2857  as amended: 44-5-11.8
2857: 44-5-11.8