Senate approves amended Providence tax-classification bill after debate over homeowner impacts

The Rhode Island Senate on April 11 approved Senate Bill 2857, an enabling local law to restructure property tax classifications in the City of Providence, adopting floor amendment LC 5712/2 by a recorded vote of 29-2.

Sponsor Senator Basilian said the bill stems from a city council-created tax and revenue commission and aims to "build transparency in the city's tax classification code," clarifying distinctions among owner-occupied, non-owner-occupied and commercial classes and adding measures intended to control commercial-rate growth.

Opponents on the floor, led by Senator Bell, said the amendment language raised concrete fiscal concerns. "Has there been a financial analysis on the impact that putting this in place would have on the taxes paid by homeowners and Providence?" Bell asked, warning that reclassifying large apartment buildings into different classes and capping class-rate differentials could, mathematically, require property tax increases for homeowners if the overall levy remains the same.

Supporters responded that the amendment sets ceilings rather than fixed rates and preserves municipal authority to set rates by ordinance. Senator DePalma and others noted existing statutory ceilings and said the amendment seeks clarity for local councils rather than prescriptive state rate-setting.

The Senate recorded 29 votes in favor, two opposed, on both the amendment and the act as amended. The bill now moves to the House for consideration.

Supporters and critics alike said additional municipal-level fiscal analysis would be useful for Providence officials and taxpayers as local councils apply the new classification framework.