Providence to Post 25% Property Tax Hike?

Providence's Finance Committee Votes in Favor of Tax Hike

Even Higher Rate Increase for Small Landlords

On July 14^th, the Providence City Council's Finance Committee voted to increase the property tax rates for residential and commercial property and eliminate the homestead exemption for owners of 1 – 5 non-owner occupied properties, (July 16^th  and July 20^th articles in the Providence Journal).  The full City Council will vote on July 26^th.

Details of the Proposed Increases:

25.5% increase in residential property tax rate: The residential property tax rate would increase from $24.21 per $1,000 of assessed value to $30.38.

Additional 33% rate hike for small landlords:  The Council will vote to repeal a homestead exemption for non-owner occupied rental properties of 1 – 5 units.  If approved, this will result in an additional 33% increase in the property tax rate for owners of these properties. This will mean a grand total of a 58.5% tax increase for some landlords.

17.8% increase in commercial property tax rate:   The commercial property tax rate would  raise the commercial rate from $28.60 per $1,000 of value to $33.70

When will these increases take effect?   Immediately? Retroactively? Property owners will receive revised tax bills in August, (July 16^th Providence Journal).