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:

           INCOME RANGE                                TAX CREDIT 
                                 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.