Permits the town of Little Compton a one-year levy cap for fiscal year 2026 not to exceed twelve percent (12%).
Summary
H6362 amends Rhode Island’s local property tax levy cap law to create a special, one-year exception for the Town of Little Compton. Under current law, cities and towns are generally limited to a 4% annual increase in the amount they may levy, subject to certain statutory exceptions for revenue losses, emergencies, debt service increases, and major new construction. This bill adds a new subsection allowing Little Compton to exceed that cap for fiscal year 2026, up to 12%, if approved by the Little Compton Financial Town Meeting.
The bill is narrowly tailored to one municipality and takes effect immediately upon passage. It does not change the statewide levy cap framework for other cities and towns, but it does create a local carve-out that permits a substantially larger tax levy increase than ordinarily allowed under Rhode Island law.
Impact
The bill modifies § 44-5-2 of the General Laws by adding a town-specific exemption to the local tax levy growth cap. Its practical effect is to authorize Little Compton to raise property tax revenues above the normal statutory limit for FY 2026, subject to local voter approval at financial town meeting. For other municipalities, the existing levy cap rules and exceptions remain unchanged.
Sentiment
The available voting history suggests broad support for the measure, with the House passing it 69-0. The bill’s caption and text indicate it is intended as a targeted fiscal flexibility measure for Little Compton rather than a controversial statewide tax policy change. No committee transcript was provided, so there is no recorded debate in the materials about opposition or concerns.
Contention
The main point of potential contention is the size of the exemption: Little Compton would be allowed up to a 12% levy increase, which is substantially higher than the general 4% cap. Any concern would likely center on the impact on local taxpayers and whether a town-specific exception creates precedent for other municipalities seeking similar relief. The bill addresses this by requiring approval from the Little Compton Financial Town Meeting, making local consent the key safeguard.