AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

HB 6394 modifies property tax levy limits for cities and towns in Rhode Island, with specific provisions for Providence. It gradually reduces the maximum annual tax increase cap from 5.5% (through 2007) down to 4% (starting 2013), requiring local governments to stay within these limits unless exceptions apply. The bill includes a special provision allowing Providence to exceed its cap in fiscal year 2026 for revenue from Class 2B property tax rates above $28.80 per $1,000 valuation. Exceptions permitting higher taxes include certified revenue shortfalls, emergencies (like health insurance spikes), debt service increases, or major new construction requiring infrastructure spending.