It is enacted by the General Assembly as follows:

SECTION 1. Chapter 44-3 of the General Laws entitled "Property Subject to Taxation" is hereby amended by adding thereto the following section:

{ADD 44-3-40. Authorization to exempt retailer's inventory -- Cities and towns. -- ADD} {ADD (a) Each city and town, by resolution or ordinance adopted by the city or town council, may wholly or partially exempt from taxation the valuation of the stock in trade or inventory of retailers.

(b) The term "retailer" shall mean and include a person, partnership, corporation, or other business entity engaged in the business of selling goods at retail.

(c) The term "inventory" or "stock in trade" shall mean and include the merchandise kept on hand for sale in the normal course of business of a retailer. ADD}

{ADD (d) Nothing in this section shall be deemed to permit the exemption or stabilization herein provided for any retailer relocating from one city or town within the state of Rhode Island to another. ADD}

SECTION 2. This act shall take effect upon passage.