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Providence council asks General Assembly for one-year exemption to 4% levy cap, sets 8% ceiling
Summary
On March 20 the Providence City Council voted to ask the Rhode Island General Assembly for a one-year exemption to exceed the 4% property tax levy cap, approving an amended resolution that sets an 8% ceiling and directs collaboration on the FY2026 budget.
The Providence City Council voted March 20 to ask the Rhode Island General Assembly for a one-year exemption to allow the city to exceed the 4% property tax levy cap, approving an amended resolution that includes a maximum ceiling of 8%.
Councilwoman Ryan, who introduced the resolution, said the measure "does still ask the general assembly to allow us a 1 year exemption to go over the 4% cap," and described the vote as a tool to give the city flexibility during budget season while the council and administration search for additional revenue and cost reductions.
The resolution, amended in committee and on the floor, asks state lawmakers for permission to exceed the statutory 4% limit for one year and establishes a ceiling of 8% to constrain any possible increase. Supporters said the request responds to rising obligations — including a court settlement and increasing pension and school payments — and to uncertainty from federal funding cuts.
Opponents and cautious members raised concerns about giving broad authority to the administration. Councilman Oscar Vargas warned against "giving a blank check" to the mayor's office; Councilwoman Graves and others urged the council to do rigorous vetting of the mayor's proposed budget before any tax increase is adopted. Councilman Taylor and other members said the council retains the legal authority to approve or reduce any tax proposals when the budget is presented.
The motion to advance the resolution passed on a roll call vote with 14 ayes and 1 member absent. The vote does not itself change tax rates; it asks the General Assembly for temporary permission that, if granted, would give the city an option during FY2026 budget negotiations. Council members said they expect extensive committee review and public engagement before the council would approve any levy increase.
Next steps: the council will receive the mayor's proposed budget and said members and administration will hold community meetings and finance committee sessions to review revenue options, possible cuts and program priorities before any final vote on tax rates.
