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5/27/2025
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House OKs Providence’s request to exceed tax levy cap for one year
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STATE HOUSE – The House of Representatives today granted leeway to Providence to exceed the state’s limit on property tax increases for one year, primarily to comply with a settlement to address three decades of underfunding city schools.
The legislation (2025-H 6162), which was requested by the city and backed unanimously by the City Council as well as Mayor Brett P. Smiley, allows Providence to increase its tax levy by up to 8% for Fiscal Year 2026 only. State law generally requires municipalities to limit year-to-year tax levy increases to 4%, and requires General Assembly approval to exceed that amount.
“This bill was requested by the City Council and the mayor because it is necessary in order for Providence to have the flexibility it needs to comply with the settlement with the Department of Education to correct 30 years of insufficiently funding education. It’s difficult, but also an inescapable reality. I am eager to see the passage of several other bills that would help Providence and other municipalities generate revenue through other means, such as surcharges on parking lots and changes to hotel and short-term rental taxes, because while more tax revenue is needed, the taxpayers cannot shoulder the burden alone,” said Rep. Rebecca Kislak (D-Dist. 4, Providence), who introduced the bill on behalf of the city.
The legislation now goes to the Senate, where the Senate Finance Committee held a hearing earlier this afternoon on the companion bill (2025-S 1041) to this legislation. That bill is sponsored by Sen. Samuel D. Zurier (D-Dist. 3, Providence).
The city budget, as proposed by Mayor Smiley, plans a 7.5% increase to the tax levy. Different properties will be affected differently based on their classification and individual assessment. Property owners can calculate their estimated taxes to determine individual impacts of the proposed budget on the city website. The Providence budget documents can be found here The budget proposal is currently being vetted by the City Council, with public input being accepted at the finance committee’s meeting on June 9.
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903
(401)222-1922
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