Providence Property Owners Could Face Huge Tax Increase

Published by: The RI Association of Realtors
Realtor's Digest on July 22, 2010

City Council to Vote July 26
The Rhode Island Association of Realtors and the Greater Providence Board of Realtors is working to spread the word about a significant tax hike facing Providence property owners that will be voted on by the Providence City Council on July 26th. If passed, some property owners could see an 88 percent increase in their taxes.

On July 14, the Providence City Council's Finance Committee voted to increase the property tax rates for residential and commercial property.

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

The commercial tax rate would see a 17.8% increase from $28.60 per thousand to $33.70 per thousand.

Landlords may receive an even more significant blow if the repeal of the homestead exemption for non-owner occupied rental properties of 1-5 unites is passed. The exemption, which as been in place for two decades, exempts the first 33% of assessment value from the tax, resulting in a discounted rate of $16.14 this year. Loss of the exemption coupled with the tax increase could result in an 88 percent increase in taxes from year to year for some Providence property owners.

According to a July 16th report in the Providence Journal, property owners will receive revised tax bills next month.