It is enacted by the General Assembly as follows:

SECTION 1. Section 1 of chapter 28 of the 1977 public laws entitled, "An Act Enabling the City of Warwick to Grant Certain Tax Credits" is hereby amended to read as follows:

The finance director of the city of Warwick is hereby authorized to grant a real property credit from taxation to any person, sixty-five (65) years of age or over, or to any person who is one hundred percent (100%)disabled, who owns and occupies residential property in the city of Warwick, on proper claim therefor on the following basis:

For the fiscal year as noted below, the tax credit on the claimant's homestead shall be based on the claimant's annual income, and shall be in accordance with the following table:

{ADD INCOME RANGE ADD} {ADD TAX CREDIT ADD} Tax year 1995 $ 0-$10536 800 10537-$11853 700 11854-$13171 600 13172-$14488 500 14489-$15805 400

Thereafter the tax assessor shall peg the increase of the income range and the tax credit to the consumer price index (C.P.I.) at the beginning of each fiscal year.

The implementation of the aforementioned shall commence with the tax revaluation year, 1997.

Automatic rate updates under this section shall be made in five (5) year intervals.

SECTION 2. This act shall take effect upon passage.