Town Council approves tax rates for residential and commercial properties for FY 2025

In a recent North Smithfield Town Council meeting held on June 30, 2025, council members engaged in a detailed discussion regarding proposed tax rates for residential and commercial properties for the upcoming fiscal year. The meeting highlighted three options for adjusting tax rates, reflecting the town's ongoing efforts to balance fiscal responsibility with community needs.

The first option proposed a significant reduction in residential tax rates to 11.499 per $1,000 of assessed value, while commercial rates would be set at 16.936. This approach aims to provide substantial relief to residential taxpayers, particularly in light of recent property value increases. The second option suggested a uniform decrease of 21% for both residential and commercial properties, bringing residential rates to 11.656 and commercial rates to 16.117. The third option focused on maintaining the commercial tax rate at 141.7% of the residential rate, resulting in a residential rate of 11.6 and a commercial rate of 16.413.

Council members expressed varying opinions on the proposed options. Some favored the first option, emphasizing the need to alleviate the tax burden on residents who have faced significant increases in property assessments. Others advocated for the second option, arguing that equal reductions for both residential and commercial properties would send a positive message to businesses, demonstrating the town's commitment to fostering a supportive economic environment.

The discussion also touched on the implications of the recent revaluation of properties, which saw a 30% increase in residential assessments compared to a 20% increase for commercial properties. This disparity raised concerns about the potential for residential taxpayers to bear a disproportionate share of the tax burden if adjustments were not made.

In addition to tax rates, the council addressed the tangible property tax, which remains unchanged due to state regulations limiting increases. The conversation underscored the importance of maintaining a stable tax base while also considering the needs of local businesses and residents.

As the council moves forward, the decision on which tax rate option to adopt will play a crucial role in shaping the town's fiscal landscape for the coming year. The council's commitment to balancing tax relief with economic growth will be essential in ensuring North Smithfield remains an attractive place for both residents and businesses. The final decision is expected to be made in the coming weeks, as council members weigh the implications of each option on the community's financial health.