It is enacted by the General Assembly as follows:

SECTION 1. Section 1 of Chapter 22 of the 1996 Public Laws entitled "An Act Relating to Taxation -- Homestead Exemption -- City of Cranston" is hereby amended to read as follows:

44-5-62. Homestead exemption in the city of Cranston. -- 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 {ADD or mixed purposes, defined as a combination of residential and commercial uses, ADD} in the city of Cranston and to grant homestead exemptions to the owner(s) of such residential real estate {ADD or combination residential and commercial real estate ADD} 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 {ADD or real property used for a combination of residential and commercial uses. When real property is used for said mixed purposes the percentage of the assessed value shall be a pro rated amount. That pro rated amount shall be the percentage of square feet used for residential purposes multiplied by thirty percent (30%). ADD} 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.

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 This section and section 1 of this act shall take effect upon passage and shall be repealed on July 1, 2000.