City Council Moves Forward on Smiley’s Effort to Raise Taxes More Than 4% in Providence UPDATED

City Council Moves Forward on Smiley’s Effort to Raise Taxes More Than 4% in Providence UPDATED

Get ready Providence - the next steps for a major tax hike are in motion. 

Homeowners in the city are poised to see an escalation in the cost of housing. If the tax increase is approved both homeowners as well as renters will feel the pain. Landlords generally pass along tax increases.

Providence had the largest increase in the U.S. in the average rent this past year.  From December 2023 to December 2024, the average Providence rent jumped 12.6% with a median asking rent of $2,145, according to Rent.com.

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Now, the President of the Providence City Council is calling for the body to consider a resolution “supporting General Assembly legislation allowing the City of Providence a one-year levy cap exemption for Fiscal Year 2026.”

The reason? So it can be used as a “procedural tool allowing for more flexibility and options as the City seeks to pass a balanced budget this upcoming spring.” 

This week, City Council President Rachel Miller sent a letter to the city clerk asking that the resolution be considered at the special meeting of the council on January 30 at 5 PM. 

(SEE BELOW)

The agenda item was posted - before it was removed.

Providence City Clerk Tina Mastroianni told GoLocal the agenda item had been "improperly submitted."

It is unclear when it will now be taken up. 

"The Council President was not a sponsor [of] the resolution, which the Mayor submitted to support his proposal. The resolution did not belong at the special meeting—which was called to review the Hazard Mitigation Plan to ensure we are not at risk of losing federal funding in the case of a disaster—and has since been removed," said City Council Press Secretary Roxie Richner Thursday morning.

"Following the education settlement, the city is in a challenging financial situation. President Miller and members of the City Council are deeply committed to exploring all ways to meet our funding obligations and balance the budget without unmanageable tax increases and broad painful cuts," added Richner. 

 

 

 

City in Focus

This comes just weeks after Brett Smiley said the city was in a solid financial position but then had to reverse course.

On November 1, Smiley issued a press release with statements that were completely false.

When he issued the following statement, he knew the city had failed to pay tens of millions of dollars to the schools.

“We have worked diligently to balance our financial operations while making strategic investments in our city’s future. Our recent rating upgrades are a testament to our responsible fiscal management, positioning our city for long-term success and lower interest costs,” said Smiley. “We will continue to focus on making responsible investments that strengthen our  financial position and benefit all Providence community members, ensuring a stable and prosperous future for our city.”  

His statement was not true.

Actually, the city was already in a major financial crisis.

 

Latest for City in "Fiscal Crisis"

As GoLocal was first to report in November 2024, "Smiley Will Ask Legislature to Remove Cap, Request Tax Hike of More Than 4%:"

Providence is officially in a financial crisis.

Rhode Island law caps the amount cities and towns can raise property taxes in a single year at 4%.

Specifically, the law states, “In its fiscal year 2013 and in each fiscal year thereafter, a city or town may levy a tax in an amount not more than four percent (4%) in excess of the total amount levied and certified by that city or town for its previous fiscal year. 

The purpose is to ensure communities responsibly budget and financially plan.

Only communities in a “financial crisis” can petition the legislature to exceed the cap.

Read more here.