It is enacted by the General Assembly as follows:

SECTION 1. Section 44-5-8 of the General Laws in Chapter 44-5 entitled "Levy and Assessment of Local Taxes" is hereby amended to read as follows:

The option shall be expressed in substantially the following form: "The tax may be paid in ____ installments, the first installment of ____ percent on or before the ____ day of ____ A.D. 19____ : (proportions and dates to be specified.)" "Each installment of taxes if paid on or before the last day of each installment period successively and in order is free from any charge for interest." "If the first installment or any succeeding installment of taxes is not paid by the last date of the respective installment period or periods as they occur then the whole tax or remaining unpaid balance of the tax as the case may be immediately becomes due and payable and carries until collected a penalty at the rate of ____ percent (not less than six (6) nor more than eighteen (18) or, in the case of the city of Cranston, not more than twelve (12) per annum); provided, that taxes payable to the city of Newport, the town of Middletown, the town of Hopkinton, the town of West Greenwich, the town of East Greenwich, the town of North Kingstown, the town of New Shoreham and the town of Tiverton shall bear interest on any unpaid quarterly payments, and that only the unpaid quarterly payments are due and payable to the city of Newport, the town of Middletown, the town of Hopkinton, the town of West Greenwich, the town of East Greenwich, the town of North Kingstown, the town of New Shoreham and the town of Tiverton notwithstanding the provisions of this section to the contrary."

SECTION 2. This act shall take effect upon passage.