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

SB 1116 sets annual limits on how much property taxes can increase for cities and towns, directly affecting local governments and property owners. It gradually reduces the maximum allowable tax increase from 5.5% in 2007 down to 4% annually starting in 2013, with specific exceptions for emergencies, debt service increases, or major infrastructure needs. The bill also includes a special provision for Providence in 2026, allowing limited revenue from certain commercial property tax rates to exceed the cap. Local governments must report tax levies to the state for compliance monitoring, and exceptions require approval by a supermajority vote or specific certifications. The law became effective without the governor's signature on July 1, 2025.