Rhode IslandH63942025 Regular SessionHouseWALLET

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

Sponsored By: Rebecca M. Kislak (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Providence can collect more property taxes

For fiscal year 2026, Providence can exceed its limit on total property taxes collected. The extra amount is limited to revenue from the Class 2B commercial rate above the base Class 2A rate. This requires state certification and approval by four-fifths of the city’s governing body. The city does not have to use this option, and the law sets no individual tax increase.

Providence gains tax classes with rate caps

Providence can adopt property tax classes by ordinance, allowing different rates for different property types. Residential Classes 1A–1D cover one unit, 2–5 units, 6–10 units, and more than 10 units; after the first tax year, the city can change these ranges by ordinance. Commercial Class 2A cannot exceed twice the Class 1A base rate or 3.5 times its effective owner-occupied rate. Commercial Class 2B cannot exceed 1.5 times the Class 2A rate; this system sets no further limits on rate differences. Tax bills depend on the city’s chosen rates and each property’s class.

New tax valuation rules for gas plants

Rhode Island’s Office of Energy Resources must issue rules for setting the full and fair cash value of natural-gas power plants. The rules cover plants designed or capable of operating at a gross capacity of at least 40 megawatts. They take effect beginning in fiscal year 2027. The law sets no specific increase or decrease in plant assessments or household taxes.

Sponsors & Cosponsors

Sponsor

  • Rebecca M. Kislak

    Democratic • House

Cosponsors

  • Edith H. Ajello

    Democratic • House

  • José F. Batista

    Democratic • House

  • Nathan W. Biah

    Democratic • House

  • Grace Diaz

    Democratic • House

  • John J. Lombardi

    Democratic • House

  • David Morales

    Democratic • House

  • Enrique Sanchez

    Democratic • House

  • Scott A. Slater

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 97 • No: 11

Senate vote • 6/20/2025

RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES In Concurrence Passage

Yes: 31 • No: 4

House vote • 6/18/2025

LEVY & ASSESSMENT OF LOCAL TAXES PASSAGE

Yes: 66 • No: 7

Actions Timeline

  1. Effective without Governor's signature — Chapter 348

    7/1/2025Governor
  2. Transmitted to Governor

    6/23/2025Governor
  3. Senate passed Sub A in concurrence

    6/20/2025Senate
  4. Placed on Senate Calendar (06/20/2025)

    6/18/2025Senate
  5. House passed Sub A

    6/18/2025House
  6. Placed on House Calendar (06/18/2025)

    6/16/2025House
  7. Committee recommends passage of Sub A

    6/16/2025
  8. Proposed Substitute

    6/13/2025
  9. Scheduled for consideration (06/16/2025)

    6/13/2025
  10. Committee recommended measure be held for further study

    6/10/2025
  11. Scheduled for hearing and/or consideration (06/10/2025)

    6/6/2025
  12. Introduced, referred to House Municipal Government & Housing

    6/6/2025House

Bill Text

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