City Council to Move Forward with Single Tax Rate and Single Homestead Exemption
The City Council leadership team would like to thank our sponsors in both the House and Senate for their support of the Council’s progressive tax plan. Tonight, the Rhode Island Senate voted in favor of the Council’s proposed tax plan, while the House of Representatives requested more time and review. The Council is committed to this tax plan and will provide any additional information as requested.
Council President Sabina Matos stated: “I am grateful for the support that we received in the General Assembly. Although we didn’t get the result we had hoped, we have laid the groundwork to continue the discussion on the best path forward in creating a progressive tax plan here in our capital city.”
“I want to thank the Senate leadership for their broad support of our plan that would provide tax relief to the most disadvantaged neighborhoods in our City,” stated Chairman of the Council’s Committee on Finance and Councilman John J. Igliozzi. “I would also like to thank the Speaker of the House, and the Representatives for their consideration of our bold plan. This is the first step in creating a truly progressive tax plan that benefits all residents and not just some.”
Less than seven weeks ago, Mayor Elorza introduced his budget which called for a significant increase in spending and also raised the property taxes of the most disadvantaged neighborhoods in Providence. While giving 1% of the City’s wealthiest property owners a tax break. It was the goal of the Council’s leadership team to mitigate that by utilizing a progressive tax plan.
City Council leadership is still committed to providing tax relief to the citizens of Providence, and will present a budget that will include a flat tax rate, and will incorporate a single homestead exemption for every resident of Providence. The majority of the Committee on Finance and the Council believe that bringing back the homestead exemption will help the most disadvantaged neighborhoods in Providence. Many of those neighborhoods saw 30, 40, and even 50% increases in their property revaluations, and this plan will work to protect those individuals.
“We have a fiscal obligation to ensure that we are being good stewards of our City’s finances,” stated Vice-Chairwoman of the Committee on Finance and City Council Majority Leader Jo-Ann Ryan. “The Committee will work to ensure that we pass a budget that is sound and begins to address our long term pension obligation. I thank Council President Matos and Chairman Igliozzi for their leadership, Senate and House sponsors and representatives for their consideration, and my colleagues for their tireless work to lessen the tax burden of our residents.”
It is the Committee’s goal to have the budget passed out of Committee as early as the end of this week, and then passed by the full Council the first week of July.