PROVIDENCE, R.I. (WPRI) -- The 15-member Providence City Council will vote Thursday on a resolution in support of state legislation that would have major implications for taxpayers. The resolution would support a bill that would allow the city to go over the state-mandated tax cap of 4%, but limi ts that cap to 8%. It could raise property taxes by hundreds of dollars. Mayor Brett Smiley said a tax increase is needed to help fill a $22 million budget hole. The gap is primarily as a result of a $15 million settlement the city reached last fall with the R.I. Department of Education, which still controls the Providence Public School District. The city has already paid $4 million to the schools, but owes the remaining $11 million in the next fiscal year. The resolution states that the legislation would only give the city permission to go over the levy in fiscal year 2026, and should be used as a "procedural tool allowing for more flexibility in the development and passage of a balanced budget." At a meeting of the council's Committee on Finance last week, councilors stressed the importance of prioritizing finding new revenue sources and proposing thoughtful cuts before resorting to residential property tax increases. “People are really worried,” Councilor Sue AnderBois said last week. “People are hurt with the chaos at the federal level. People’s budgets are even more strapped than they were before that.” The council's vote isn't binding, as the legislation would still need approval from the R.I. General Assembly. If enough votes aren't secured by councilors though, the bill, which was introduced last month, may die in the House. Separately on Thursday, Council President Rachel Miller will introduce two ordinances aimed at addressing the ongoing housing crisis. One ordinance would ban landlords from using "algorithmic devices," or software that sets rental rates in Providence. It also stipulates civil penalties for property owners found to be in violation. The idea isn't new. Cities like Berkeley, Philadelphia, San Diego, San Francisco, and San Jose have passed, or are considering passing, similar bans. Miller is also proposing an ordinance that would ban online tax sales in Providence and would require that real-estate auctions take place in person. A press release from the council states the ordinance comes in response "to multinational private equity firms like BlackRock, who are buying up Providence housing stock en masse." Also tonight, councilors will take the first of two votes on an ordinance that would prohibit fining homeless individuals found sleeping on public property. The City Council meets at 6 p.m. inside the Council chambers on the third floor of Providence City Hall. Alexandra Leslie (aleslie@wpri.com) is a Target 12 investigative reporter covering Providence and more for 12 News. Connect with her on Twitter and on Facebook. Download the WPRI 12 and Pinpoint Weather 12 apps to get breaking news and weather alerts. Watch 12 News Now on WPRI.com or with the new 12+ smart TV app. Follow us on social media:                     Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Daily Roundup SIGN UP NOW ...read more read less