It is enacted by the General Assembly as follows:

SECTION 1. Section 44-25-4 of the General Laws in Chapter 44-25 entitled "Real Estate Conveyance Tax", is hereby amended to read as follows:

44-25-4. Furnishing stamps -- Sale -- Agents -- Compensation -- Bond premiums. -- (a) The tax administrator shall prescribe, prepare, and furnish stamps, of such denominations and quantities as may be necessary, for the payment of the tax imposed and assessed by this chapter. The tax administrator shall make provisions, including the use of metering machines, if deemed expedient by the administrator, for the sale of the stamps in such places as the administrator may deem necessary.

(b) The tax administrator may appoint the recorder of deeds or clerks in each city or town and other persons within or without the state, as agents, for the sale of stamps to be used in paying the tax herein imposed upon instruments, and may allow a commission to said agents of twenty-five cents (25%) per one dollar and forty cents ($1.40) of the face value of the stamps. The commissions allowed to a recorder of deeds or clerks shall be turned over to the treasurer of the city or town in which the tax is collected, for the use of the city or town.

(c) The tax administrator shall pay over as general revenue the state's share of the real estate conveyance tax {ADD contribute to the distressed communities relief program the sum of thirty cents ($.30) per one dollar and forty cents ($1.40) of the face value of such stamps, to be distributed pursuant to section 45-13-12 ADD} .

(d) The tax administrator shall pay the premium on any bond required by the tax administrator to be procured by any agent for the performance of his or her duties under this chapter.

SECTION 2. Section 45-13-12 of the General Laws in Chapter 45-13 entitled "State Aid" is hereby amended to read as follows:

45-13-12. Distressed communities relief fund. -- (a) There is hereby established a fund to provide state assistance to those Rhode Island cities and towns which have the highest property tax burdens relative to the wealth of taxpayers.

(b) {ADD Establishment of indices. ADD} Four (4) indices of distress shall be established to determine the eligibility for the program. Each community shall be ranked by each distress index and any community which falls into the lowest fifteen percent (15%) of at least three (3) of the four (4) indices shall be eligible to receive assistance. The four (4) indices are established as follows:

(1) {ADD Percent of tax levy to full value of property. ADD} This shall be computed by dividing the tax levy of each municipality by the full value of property for each municipality. For the 1990-91 fiscal year, tax levy and full value shall be as of the assessment date December 31, 1986.

(2) {ADD Per capita income. ADD} This shall be the most recent estimate reported by the U.S. department of commerce, bureau of the census.

(3) {ADD Percent of personal income to full value of property. ADD} This shall be computed by multiplying the per capita income above by the most recent population estimate as reported by the U.S. department of commerce, bureau of the census, and dividing the result by the full value of property.

(4) {ADD Per capita full value of property. ADD} This shall be the full value of property divided by the most recent estimate of population by the U.S. department of commerce, bureau of the census.

(c) {ADD Distribution of funds. ADD} Funds shall be distributed to each eligible community on the basis of the community's tax levy relative to the total tax levy of all eligible communities. For the fiscal year 1990-91, the reference year for the tax levy shall be the assessment date of December 31, 1988. For each fiscal year thereafter, the reference year and the fiscal year shall bear the same relationship.

(d) {ADD Appropriation of funds. ADD} The State of Rhode Island shall appropriate to eligible communities the collections from the real estate conveyance tax pursuant to section 44-25-4(c) which have been deposited as general revenues.

(e) {ADD Payments. ADD} Payments shall be made to eligible communities each August and March . {ADD from amounts collected pursuant to section 44-25-4(c) during the period July 1 to December 31 and in August from collections during the period January 1 to June 30. ADD}

SECTION 3. This act shall take effect upon passage and shall be applied retroactively to July 1, 1995.