A bill to raise Providence’s total tax levy beyond the state-mandated cap cleared its penultimate hurdle Tuesday.
The Senate Committee on Finance voted 8-1 to advance Sen. Sam Zurier’s S1041 toward the full Senate floor for a possible vote in the waning days of this year’s legislative session.
Sen. Elaine Morgan, a Hopkinton Republican, was the sole senator to vote ‘no.’ Majority Leader Frank Ciccone was absent for the vote.
Zurier, a Providence Democrat, introduced the bill in May at the request of city officials. It mirrors legislation sponsored by Rep. Rebecca Kislak, a fellow Providence Democrat, that passed the House of Representatives in a floor vote on May 27.
Both bills would authorize the last resort requested by Mayor Brett Smiley: Permission to increase the city’s total tax levy by 7.5% for fiscal year 2026, in hopes of balancing the city’s budget to fund a court-ordered school funding settlement from last November.
Without the General Assembly’s approval, the city would be limited to the 4% maximum increase typical under state law and would be forced to revise its budget before the new fiscal year begins on July 1. Smiley released his budget in April. The Providence City Council, which also supports the levy increase, continues to work on the budgeting process for the year ahead.
The levy cap increase remains a foundational stone in the building of this year’s city budget, but it has not roused unanimous support among Providence delegates due to its expected impact on homeowners and renters. Smiley’s proposed fiscal 2026 budget would technically lower tax rates, but the city’s most recent cycle of property revaluations means that most residents would still see higher tax bills. According to the city’s estimates, single-family homes would see increases of around 4%. But for two- to five-unit multifamily properties, tax increases could reach 16% for whether or not a property is occupied by its owner.
Kislak was able to garner support in the House from a few Providence reps, some of whom signed on as co-sponsors, despite opposition from other reps who live in the city. Zurier, meanwhile, had trouble finding co-sponsors for the bill in his chamber, and no other Providence senators signed on.
Providence is not the only municipality to request a levy hike above the state limit this year. Legislation to increase Little Compton’s total levy by a whopping 12% passed both chambers earlier this month and was signed into law by Gov. Dan McKee on June 13. According to the Sakonnet Times, town officials asked to tweak the levy after finding a $1.5 million structural deficit in the proposed $18.9 million budget for the municipality. The levy still needs to go before a vote of the town’s Financial Town Meeting, scheduled to take place Tuesday at 7 p.m.
The Senate bill now heads to the full chamber for a vote, likely to be taken up before the legislative session ends, possibly later this week or next week. Each chamber’s version of the bill needs to pass both chambers before the legislation can arrive on McKee’s desk.
This story was originally published by the Rhode Island Current.
