Providence is planning to levy its biggest tax increase on residents in more than a decade, and many of them testified at a public hearing in the city council chambers on Monday night to share how they felt.
A binding legal settlement with the state requires Providence to vastly increase school spending this year, which means residents are facing a bigger tax increase than they’re used to.
The typical homeowner’s tax bill is projected to go up 6%, or about $250 on average, according to estimates provided by the Providence City Council.
But landlords who own duplexes, triple-deckers, and small apartment buildings face a much higher tax hike of 13%, unless they live in the building themselves.
Hillary Brame lives in a three-unit house on the West Side that she owns with her partner. Her taxes are projected to go up 6%, the same rate as single-family homeowners. But she said people who don’t live with their landlords will see big rent increases because of the new tax rates.
“I’m very happy about what you guys did for the mom-and-pop landlords,” Brame said, “but I’m disappointed that you couldn’t do more for the working people in Providence.”
The Rhode Island legislature had to grant Providence permission for the tax hikes this year, since state law caps municipal tax levy increases at 4% annually.
City councilors and their staff members say they are working quickly to get the new tax bills out to property owners in mid-July, a few weeks later than usual.
The council’s finance committee unanimously approved the budget with the planned tax hikes on Monday night, sending it to the full council for final approval.
About a dozen residents from across the city voiced their concerns before the vote.
Dave Talan and Angel Connell, co-chairs of the Providence Republican City Committee, encouraged city officials to find ways to reduce the school budget, despite the court settlement requiring higher funding.
Victor F. Capellan, a former advisor to the state’s education commissioner, said he lives in the city and supports the tax increases.
“As a product of the public education system, I am willing to pay higher taxes because I know our schools have been underfunded for far too long,” Capellan said.
Kate Schapira, who lives on Federal Hill, said she was frustrated that politicians were willing to raise taxes on ordinary people without considering budget cuts to the police department.
“I haven’t heard anybody talk seriously about that,” Schapira said.
John Sherman, who lives on a small street off Douglas Avenue, thanked the council for negotiating with Mayor Brett Smiley to reduce the tax burden for small-time landlords who live in their buildings.
“I think you have done an amazing job considering the hardship involved in this budget,” Sherman said. “You listened to people who own two to five families, but beyond that, and shockingly to me, you actually have done something to decrease the cost to us, and that is so greatly appreciated.”
