Title 44
Taxation

Chapter 5
Levy and Assessment of Local Taxes

§ 44-5-11.18. Tax classification — Providence.

Notwithstanding any provision of § 44-5-11.8 to the contrary, the city of Providence may adopt a tax classification with unrestricted tax rates by ordinance as follows:

(1) Classes of property.

(i)(A) Class 1A: Residential real estate consisting of fewer than six (6) dwelling units; land classified as open space; and dwellings on leased land including mobile homes.

(B) Class 1B: Residential real estate consisting of six (6) to ten (10) dwelling units.

(C) Class 1C: Residential real estate of more than ten (10) dwelling units.

(ii) Class 2: Commercial and industrial real estate.

(iii) Class 3: Properties containing partial residential and commercial or business uses. The city is authorized to adopt a tax rate for this class or to apply the appropriate residential tax rate to the residential portion of the property and the commercial rate to the commercial portion of the property. The city may apportion property by square footage, by number of units, or by any other reasonable and consistent manner.

(iv) Class 4: All ratable, tangible personal property.

(2) A homestead exemption is also authorized within Class 1A. In lieu of a homestead exemption, the city of Providence may divide Class 1A into non-owner and owner-occupied property and adopt separate tax rates.

(3) In any tax year after the first in which the city of Providence adopts such a tax classification, the city council of the city of Providence may by ordinance change the number of dwelling units to be included in Class 1A, Class 1B, and Class 1C.

(4) The tax rate for Class 2 shall not be more than two (2) times the base tax rate of Class 1A; and the tax rate for Class 2 shall not be more than three and one-half (3½) times the effective owner-occupied tax rate of Class 1, whether by homestead exemption or separate rates. There shall be no further differential tax rate limits for a tax classification adopted pursuant to this section.