It is enacted by the General Assembly as follows:

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:

{ADD 44-5-61. Exemption or stabilizing of taxes on qualifying property used for manufacturing or commercial purposes in the town of Coventry. -- ADD} {ADD (a) Except as hereinafter provided, the town council of the town of Coventry may vote to authorize, for a period not to exceed 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:

(1) Granting of the exemption or stabilization of taxes will inure to the benefit of the town by reason of (i) the willingness of the manufacturing or commercial firm or concern to locate in the town, or (ii) the willingness of a manufacturing or commercial firm or concern to expend facilities with an increase in employment; or

(2) 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 or concern to replace, reconstruct, expand, or remodel existing buildings, facilities, fixtures, machinery, or equipment with modern buildings, facilities, fixtures, machinery, or equipment resulting in an increase in plant or commercial building investment by the firm or concern in the town.

(b) For purpose of this section, "real property used for commercial purposes" includes any building or structure used for offices or commercial enterprises including without limitation any building or structure used for wholesale, warehouse, distribution, and/or storage businesses, used for service industries, or used for any other commercial business and the land on which the building or structure is situated and not used for residential purposes.

(c) For purposes of this section, "personal property used for commercial purposes" means any personal property owned by a firm or concern occupying a building, structure, and/or land used for commercial purposes and used by such firm or concern in its commercial enterprise including, without limitation, furniture, fixtures, equipment, machinery, stock in trade, and inventory.

(d) 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 town in which the property is located so long as the property is used for the manufacturing or commercial purposes for which the exemption or stabilized amount of taxes was made.

(e) Notwithstanding any vote and findings by the town council, the property shall be assessed for and shall pay that portion of the tax, if any, assessed by the town of Coventry for the purpose of paying the indebtedness of the town and the indebtedness of the state or any political subdivision thereof to the extent assessed upon or apportioned to the town, and the interest thereon, and for appropriation to any sinking fund of the 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. ADD}

SECTION 2. This act shall take effect upon passage.