SECTION 1. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local Taxes" is hereby amended by adding thereto the following section:

44-5-76. Reduction in assessed value of real estate upon removal of damaged structure - East Greenwich. - (a) Whenever a structure in the town of East Greenwich is damaged so as to require total reconstruction and following which, the owner provides for complete demolition of the structure with the material from the demolition being removed from the parcel of real property on which the structure was situated or used as fill on the parcel for purposes of grading, the parcel shall be assessed for purposes of property tax as of the date the demolition, removal, and grading are completed to the satisfaction of the building official, and the assessment shall reflect a determination of the assessed value of the parcel, exclusive of the assessed value of the structure so damaged, demolished, and removed.

(b) The adjusted assessment is applicable with respect to the parcel from the date demolition, removal, and grading are completed, as determined by the building official, until the thirty-first (31^st) day of December next succeeding and the assessment of the parcel for the assessment year in which demolition, removal, and grading are completed shall be adjusted accordingly by the assessor. Any excess tax resulting from the adjusted assessment shall be abated by the town council.

(c) This section is not applicable in the event of disasters such as, but not limited to, erosion or demolition resulting from floods or hurricanes. In addition, the East Greenwich town council is authorized to suspend this tax abatement policy for any year in which so many structures within the town of East Greenwich are damaged that granting reduced assessments would in the sole judgment of the town council, jeopardize the fiscal integrity of the town of East Greenwich.

SECTION 2. This act shall take effect upon passage.