Providence Tax Bills Delayed as City Council Finalizes Rates
Providence, RI — Residents anxiously awaiting their tax bills will have to wait longer due to ongoing adjustments in tax rates for the 2025-26 fiscal year, which begins July 1. The City Council is in a stalemate, awaiting approval from Governor McKee on legislation that allows tax rates to exceed the legal limit. This enabling legislation faced considerable opposition but has now passed both legislative chambers.
Key to the delay is the requirement for a public hearing on the proposed tax rates, scheduled for June 30. Due to a ruling from the R.I. Department of Revenue in May, the Council was unable to advertise the proposed rates sooner. Following the hearing, the tax rates and budget must pass through the Finance Committee before receiving two approvals from the full council.
City leaders, including Mayor Smiley, have proposed new tax rates, potentially shifting burden distributions among property types. Notably, separate rates for single-family homes and multifamily units are under consideration. The proposed increases aim to create a fairer tax structure, even though multifamily homeowners could face steeper hikes due to recent property reassessments.
Tax payments, typically due on July 24, may experience extensions as the mayor’s office plans to provide a grace period to alleviate taxpayer stress. Concerns arise as delays could impact city cash flow, affecting payments to vendors and liabilities tied to pensions, which are already underfunded.
Residents are encouraged to voice their opinions at the upcoming hearing, seeking clarity on how the proposed tax changes may impact them. For those monitoring property tax developments, this meeting will be crucial.
For further updates, contact Steph Machado at steph.machado@globe.com.
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