Permits the town of Little Compton a one-year levy cap for fiscal year 2026 not to exceed twelve percent (12%).
Summary
S1095 amends Rhode Island’s local tax levy law to create a specific, one-year exception for the Town of Little Compton. Under the bill, Little Compton would be allowed to exceed the normal municipal levy cap in fiscal year 2026, but only up to 12%, and only if approved by the Little Compton Financial Town Meeting. The bill otherwise leaves the statewide levy-cap framework in place, including the general 4% annual growth limit for cities and towns and the existing statutory exceptions for emergencies, debt service increases, major new construction, and revenue losses.
The measure is narrowly tailored to one municipality rather than a broad change to municipal taxation policy. It takes effect upon passage and functions as a special local tax authorization within the existing chapter governing levy and assessment of local taxes.
Impact
The bill temporarily modifies § 44-5-2 of the Rhode Island General Laws by adding a town-specific exemption for Little Compton for fiscal year 2026. It does not repeal or broadly revise the state’s property-tax levy cap, but it does authorize a higher local levy than would otherwise be permitted under the general cap, subject to local voter approval at financial town meeting. The practical effect is to give Little Compton additional taxing flexibility for one year, potentially increasing property tax revenue above the standard limit.
Sentiment
The voting record indicates strong and unanimous support for the bill, with passage in both chambers by 36-0 in the Senate and 65-0 in the House. No committee transcript or recorded debate was provided, but the unanimous votes suggest the proposal was viewed as a limited, noncontroversial local accommodation rather than a contested statewide tax policy change.
Contention
Because the bill is narrowly focused on a single town and preserves the broader levy-cap structure, there is little evidence of major opposition in the available record. Any potential point of concern would likely center on the policy precedent of granting a municipality an individualized exemption from statewide tax limits, as well as the effect of a higher levy on local taxpayers. However, the requirement of approval by Little Compton’s Financial Town Meeting appears designed to keep the decision locally controlled and may have reduced controversy.