Providence tax levy bill clears House committee, but lingers still in Senate

Yahoo

22-05-2025

Providence City Hall is pictured in the city's downtown. Providence officials say their fiscal 2026 budget depends on a proposed 7.5% property tax levy increase now under consideration at the State House. (Photo by Alexander Castro/Rhode Island Current)
A proposal to let Providence exceed Rhode Island's tax levy cap cleared a Rhode Island House of Representatives committee Tuesday, moving the city one step closer to the 7.5% increase city officials are seeking in total tax revenue for fiscal year 2026.
The House Committee on Municipal Government and Housing voted to move bill H6162, led by Rep. Rebecca Kislak and three other Providence Democrats, to the House floor. The bill authorizes the capital city to exceed Rhode Island's 4% property tax levy cap. The levy comprises owner-occupied and non-owner-occupied residential properties, commercial properties, tangible properties and natural growth, or increase in value, of real estate.
But not everyone was on board. Five committee members voted against the bill's passage — a third of the 15-member committee.
Kislak predicted as much. 'I don't know that it's going to be unanimous on committee,' she said in a conversation Tuesday in the House chamber before committee meetings began.
Providence Democratic Reps. David Morales and José Batista have previously expressed their deep dissatisfaction with the bill and voted to block its passage. Rep. Cherie Cruz, a progressive Pawtucket Democrat, and two Republicans, Rep. Richard Fascia of Johnston and Rep. Robert Quattrocchi of Scituate, resisted the bills alongside Morales and Batista.
The only Providence delegate to vote in support of the bill in committee was Democratic Rep. Raymond Hull. Anthony DeSimone, another Providence Democrat, was absent for the vote Tuesday.
Kislak's bill would allow an increase up to 8% over the previous year. Mayor Brett Smiley and the Providence City Council have shared their plans to increase by 7.5% the total tax levy for the upcoming fiscal year to help the city weather a court-mandated public school funding settlement from November 2024.
Smiley said in April that the next year's budget hinges almost entirely on the tax levy hike. The city's budgeting process is set to end in June, ahead of the new fiscal year's start on July 1, and the City Council will need to review and revise the current spending plan if the levy hike falls through.
But the Senate Committee on Finance has yet to schedule a hearing on Sen. Sam Zurier's companion legislation S1041, as of Thursday. The Providence Democrat introduced the bill on May 9.
'I was not able to gain any cosponsors from the PVD Senate delegation,' Zurier wrote in a Wednesday night email. 'I expect the Finance Committee to hear the bill in the next couple of weeks. I am optimistic about its chances, but there is still uncertainty.'
The mayor's office is staying calm, said spokesperson Josh Estrella in an email Wednesday. 'We do not have any concerns — we expect the bill to be heard within the next couple of weeks,' he wrote.
Estrella called the bill 'critically important' to the city in order to avoid cuts to city services. He noted that similar measures have passed recently for Middletown, Warren, and New Shoreham.
Helen Anthony, chair of the City Council's Committee on Finance, shared that view in an email Tuesday.
'Without action by the General Assembly, the mayor's budget cannot move forward,' Anthony wrote. 'That's why the city council passed a one-year exemption to the 4% levy increase cap.'
Kislak said she expects House passage. 'When a mayor and a unanimous City Council request something of the General Assembly, we should give it to them,' she said before the committee vote Tuesday.
A number of Providence legislators, residents and landlords feel the tax increase will disproportionately affect both owners and occupants of smaller, multifamily homes. Critics like Morales and Batisita have argued the city has not fully explored other revenue sources, such as Providence's industrial waterfront or its myriad of tax-exempt nonprofits both big and small.
While Smiley's proposal would actually lower direct tax rates for fiscal year 2026, the sharp increase in Providence real estate pricing during a recent evaluation means that most properties citywide would see increases in their tax bills regardless. Single-family and condo homeowners could see a 4% tax increase. Multifamily homes with between two and five units, owner-occupied or not, could face hikes up to 16%.
In her email message, Anthony underlined that the budget process has not yet concluded.
'The City Council is doing our job of vetting the proposed budget in detail, but the city needs flexibility,' she wrote. 'I urge the General Assembly to pass this exemption and to work with us in the months and years ahead to find creative, fair and balanced ways for our state's cities to raise revenue without overburdening residents.'
Council spokesperson Marc Boyd said in an email Thursday that the City Council will hold a second public hearing on the budget on Monday, June 9, at 5:30 p.m. at City Hall. Residents can also discuss their concerns with their ward's elected councilor during regularly scheduled ward meetings, Boyd said.
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