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

HB 7661 amends Rhode Island law to give towns greater flexibility in setting local property tax rates. It allows municipalities like Portsmouth to adopt, repeal, or modify their tax classification plans starting in 2027, with specific rate limits between property classes (e.g., residential vs. commercial). Key provisions require that tax rates for different property classes cannot differ by more than 50% (except in Providence, Glocester, and East Greenwich), and towns must document rate changes to municipal affairs to prevent reduced tax revenue. The bill applies broadly to Rhode Island municipalities but includes tailored rules for specific towns like East Greenwich, which can adjust its tax plan annually without annual approval.