Pawtucket, RI Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Business property class
- Class 2, § 363-66A(2)
- Rate cap
- Class 2 ≤ 175% of Class 1 rate
- Valuation deadline
- Assessor by June 15 annually
- Mixed-use parcels
- Value allocated by percentage of use
- Appeal body
- Board of Appeals as Board of Tax Review
Summary
Pawtucket taxes commercial and industrial real estate as Class 2 property under City Code § 363-66, separate from Class 1 residential parcels of five units or fewer. The Finance Director sets a separate rate for each class every year, but § 363-67 caps the Class 2 rate at no more than 175% of the Class 1 rate.
Class 2: all commercial and industrial real estate and all residential real estate which consists of six dwelling units in which no units are owner-occupied and all residential real estate which consists of more than six dwelling units. ... The Finance Director shall have the authority to apply different rates of taxation to each property class ... provided however, that such rates of taxation shall be uniform within each class; and provided further that for each year, Class 2 property rates shall not be more than 175% of Class 1 property tax rates.
Full Breakdown
Chapter 363, Article XVIII creates four ratable property classes. Class 1 covers residential real estate of five dwelling units or fewer, plus six-unit buildings with at least one owner-occupied unit, and all mobile and manufactured homes. Class 2 covers all commercial and industrial real estate, six-unit residential buildings with no owner-occupied unit, and any residential building of more than six units, the category a Pawtucket business property falls into. Class 3 is tangible personal property and Class 4 is motor vehicles and trailers taxed under the state excise tax in Title 44, Chapter 34 of the General Laws.
Where a parcel is used for more than one purpose, § 363-66B directs the Assessor to allocate the true and fair cash value between classifications by percentage of use. Under § 363-67, the Assessor must complete a full and fair cash valuation of all taxable real and personal property, including motor vehicles, by June 15 each year and determine the assessed valuation of each class. The Finance Director then sets the tax rate for each class, and that rate must be uniform within the class, but Class 2 (business) property can never be taxed at more than 175% of the Class 1 residential rate.
Section 363-68 requires the Assessor to report full and fair cash valuations to the Finance Director and City Council, who then apportion the tax levy percentage across the classes with Council approval. I. Gen. 1.
Violations & Fines
The chapter itself sets no separate penalty for misclassification; a business disputing its Class 2 assignment or valuation takes the matter to the Board of Appeals sitting as the Board of Tax Review under Sec. 4-1202 of the Code, which may affirm the Assessor's action or order a reduction. That review does not limit a taxpayer's separate right to seek relief from a court under Rhode Island's general laws governing tax assessment.
Frequently Asked Questions
What tax class applies to a Pawtucket business property?
Is there a limit on how much higher the business rate can be?
How does a business owner challenge its classification?
Sources & Official References
Other rules in Pawtucket
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Business Tax Classification in Nearby Cities
How other cities in this county handle business tax classification.