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 44-5-62. Homestead exemption in the city of Cranston. -- ADD} {ADD The city council of the city of Cranston is hereby authorized to annually fix the amount, if any, of a homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the city of Cranston and to grant homestead exemptions to the owner(s) of such residential real estate in an amount not to exceed thirty percent (30%) of the assessed value. Any such exemption shall only apply to property used exclusively for residential purposes, and improved with a dwelling containing less than five (5) units. In order to determine compliance with the homestead exemption as outlined above, the city council shall provide by resolution or ordinance rules and regulations governing eligibility for the exemption established by this section. ADD}

SECTION 2. This act shall take effect upon passage and shall be repealed on July 1, 2000.