Hi David,

As a follow-up to my previous answer, today's Providence Journal has an article about the approved 2010 budget for the city that outlines an increase in the property tax rate.

To use the same example, in 2010, there is an estimated 51 cent increase in the owner-occupied tax rate, meaning that a homeowner or a $200,000 home would pay $52 more in taxes, or $2,422 compared to the current $2,370.

According to the article, the new budget which has been approved by the City Council, is expected to be signed into law by the mayor.

Thought that may be helpful for you so you know what to expect in upcoming years.

Again, best to you, C.C. Wall

Hi David,

In the city of Providence, if you live in the property, then you are entitled to a tax exemption, called a "homestead" exemption.

For example, the current rate for property taxes in the city of Providence is $23.70 per thousand of assessed value. This is for a non-owner occupied property. So if you owned a house assessed in value for $200,000 then you would pay (200,000/1000 = 200 X 23.70) or $4,740.

Let's say you decide you will make this same home your primary residence, In that case, you would be entitled to an exemption of 50% the tax rate or (23.70 /2 = $11.85). So now, the calculation would be (200,000/1000 = 200 X 11.85) or $2,370.

I hope that makes sense. There are further complications, such as the current status of the house - is it owner-occupied already? Or is it currently a non-owner occupied property? The tax travels with the house until the end of the year, so depending on when you purchase it, and how it is currently taxed will have an impact on your tax bill at least temporarily.

All the best to you and good luck with your purchase! Providence is a great place to live!