It is enacted by the General Assembly as follows:

SECTION 1. Section 44-3-9 of the General Laws in Chapter 44-3 entitled "Property Subject to Taxation" is hereby amended to read as follows:{ADD 44-3-9. Exemption or stabilizing of taxes on property used for manufacturing or commercial purposes. -- ADD} Except as hereinafter provided, the electors of any town qualified to vote on a proposition to appropriate money or impose a tax when legally assembled, may vote to authorize the town council of the town, for a period not exceeding ten (10) years, and subject to the conditions as hereinafter provided, to exempt from payment, in whole or in part, real and personal property used for manufacturing, or commercial purposes, or to determine a stabilized amount of taxes to be paid on account of the property, notwithstanding the valuation of the property or the rate of tax; provided, however, that after public hearings, at least ten (10) days' notice of which shall be given in a newspaper having a general circulation in the town, the town council determines that (A) granting of the exemption or stabilization will inure to the benefit of the town by reason of (1) the willingness of the manufacturing or commercial concern to locate in the town, or (2) the willingness of a manufacturing firm to expand facilities with an increase in employment {ADD or the willingness of a commercial or manufacturing concern to retain its facility in the town and not reduce substantially its work force in the town ADD} ; or (B) granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of the willingness of a manufacturing or commercial firm to replace, reconstruct, expand, {ADD retain ADD} or remodel existing buildings, facilities, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase {ADD or maintenance ADD} in plant or commercial building investment by the firm in the town; provided further, however, that should the town council make the determination in clause (A) (2) hereof any exemption or stabilization may be granted only as to new buildings, fixtures, machinery, or equipment {ADD for new firms or expansions, and may be granted as to existing buildings, fixtures, machinery and equipment for existing employers in the town ADD} . Cities shall have the same authority as is herein granted to towns except that authority herein granted to the qualified electors of a town and to town councils shall be exercised in the case of a city by the city council. For purposes of this section property used for commercial purposes shall be deemed to mean any building or structures used essentially for offices or commercial enterprises and not for residential purposes. Except as hereinafter provided, property, the payment of taxes on which has been so exempted or which is subject to the payment of a stabilized amount of taxes, shall not, during the period for which the exemption or stabilization of the amount of taxes is granted, be further liable to taxation by the city or town in which the property is located so long as such property is used for the manufacturing or commercial purposes for which the exemption or stabilized amount of taxes was made. Notwithstanding any vote of the qualified electors of a town and findings of a town council or of any vote and findings by a city council all such property shall nevertheless be assessed for and shall pay that portion of the tax if any assessed by the city or town in which the real or personal property is located, for the purpose of paying the indebtedness of the city or town and the indebtedness of the state or any political subdivision thereof to the extent assessed upon or apportioned to the city or town, and the interest thereon, and for appropriation to any sinking fund of the city or town (which portion of the tax shall be paid in full) and the taxes so assessed and collected shall be kept in a separate account and used only for that purpose. Nothing in this section shall be deemed to permit the exemption or stabilization herein provided for any manufacturing or commercial concern relocating from one city or town within the state of Rhode Island to another.

SECTION 2. This act shall take effect upon passage.