Providence City Council Proposes 88% Tax Increase for landlords

On July 14th, 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.   The full City Council will vote tonight, July 26th. This week Rich and Chas had Sally Herreid in studio to talk about the proposed tax hike. Sally lives and owns investment property in Providence, and is a Realtor in our Providence office.   If you are the owner of investment property in the city of Providence, you should attend this meeting.  The mayor was unable to call in to voice his opinion but assured me that he will veto this increase, but in the meantime let your voice be heard as well. Here are some questions from the RIAR website regarding the proposed tax increases: How will these increases affect me?

• 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.
• 88% rate increase 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 increase in the actual property tax rate for owners of these properties. This will mean an increase from the current discounted rate of $16.14 of assessed value to $30.38 or more than 88%.
• 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? Property owners will receive revised tax bills in August, (July 16th Providence Journal).
• Why is Providence punishing small landlords? In the words of Finance Committee Chair Igliozzi (July 20th Providence Journal), "They are business people, and they will probably not make as much profit as they are use to, and they are unhappy". In other words, small landlords are greedy fat cats who are rolling in dough. In the same article, Chair Igliozzi further claims that a tax break that has been in affect for years is suddenly illegal.

  This week's Real Estate Insight: We can fight City Hall!  Tell your elected officials that you oppose these property tax increases.  Make their phones ring off the hook.

• Attend the Providence City Council hearing on July 26th.
• Call Mayor Cicilline: Telephone: (401) 421-2489 Email: mayor@providenceri.com
• Call City Council    Telephone: (401) 521-7477 Email: Council@providenceri.com