PROVIDENCE, R.I. -- Removing Providence's 50-percent tax discount, commonly known as the homestead exemption, this year affected the residents at Laurelmead dramatically, says City Councilman Sam Zurier Monday.
The residents there saw an 85-percent increase in their tax bill because of its removal.
The 156-apartment building for the elderly is located on the Butler Hospital campus on the East Side. Special legislation was passed in 2002 to allow the building owners -- it is run by a cooperative -- to receive the homestead exemption despite being considered a commercial property.
Providence's commercial rate -- $36.75 per $1,000 of assessed valuation -- was frozen at last year's rate, but without the homestead, the bill for Laurelmead is now being calculated with that rate instead of $18.37. Its bill this year is nearly $1.75 million. Last year's bill was $944,416.
Laurelmead residents spoke at a council Ways and Means meeting Monday, but the council and administration have yet to vet this matter. At the meeting, it took steps to reinstate some of the tax discounts given previously to its elderly, veteran and disabled homeowners.
Zurier, who represents most of the East Side, says the council will discuss Laurelmead soon. In the meantime, he urged the other council members to think about their plight as well.