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 one dwelling unit.

(B) Class 1 B: Residential real estate consisting of two (2) to five (5) dwelling units; land classified as open space; and dwellings on leased land including mobile homes.

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

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

(ii)(A) Class 2A: Commercial I real estate, as defined by the Providence tax assessor on an annual basis.

(B) Class 2B: Commercial II real estate, as defined by the Providence tax assessor on an annual basis.

(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 Classes 1A and 1B. In lieu of a homestead exemption, the city of Providence may divide Classes 1A and 1B 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, Class 1C, and Class 1D.

(4) The tax rate for Class 2A shall not be more than two (2) times the base tax rate of Class 1A; and the tax rate for Class 2A shall not be more than three and one-half (3½) times the effective owner-occupied tax rate of Class 1A, whether by homestead exemption or separate rates. The tax rate for Class 2B shall not be more than one and one-half (1.5) times the tax rate for Class 2A. There shall be no further differential tax rate limits for a tax classification adopted pursuant to this section.