Rhode Island House Bill H6162

Rhode Island 2025 Regular Session

• Introduced: 4/2/25
• Refer: 4/2/25
• Report Pass: 5/20/25
• Engrossed: 5/27/25
• Refer: 6/11/25
• Enrolled: 6/20/25
• Passed: 6/24/25

Caption

Permit the City of Providence a one-year levy cap for fiscal year 2026 not to exceed eight percent (8%).

Impact

This legislation has significant implications for local municipal finance in Providence, as it allows for a more aggressive approach toward tax revenue generation as compared to the existing limitations. Traditionally, cities are restricted to a maximum tax levy growth cap, and this increase could enable Providence to better fund essential services or infrastructure projects potentially lacking adequate funding. It reflects an acknowledgment of unique economic conditions faced by the city, enabling them to adapt to pressing financial needs.

Summary

House Bill H6162 seeks to amend the existing laws on taxation specifically regarding the levy and assessment of local taxes in the City of Providence. Introduced in the Rhode Island General Assembly, the bill stipulates that for the fiscal year 2026, the City of Providence is permitted to exceed its standard tax levy cap and impose a maximum increase of eight percent (8%) on local taxes. This change is intended to provide financial flexibility for the city to manage its budget amid specific fiscal pressures.

Contention

The bill could be viewed as a contentious measure among stakeholders in state and local politics. Critics might argue that increasing the tax levy cap places additional financial burdens on residents, particularly in the face of rising costs of living. On the other hand, proponents might suggest this approach is essential for fostering economic recovery and investing in critical municipal services, thus reflecting a tension between fiscal responsibility and the need for immediate community support. The debate over the potential impacts on residents' financial burdens versus community service needs could feature prominently in discussions surrounding the bill.