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 sections:

{ADD 44-5-20.14. Property tax classification authorized -- Smithfield. -- ADD} The town of Smithfield may by resolution or ordinance adopted by the town council provide for a system of classification of taxable property in conformity with the provisions of sections 44-5-20.11 through 44-5-20.13.

{ADD 44-5-20.15. Property tax classification -- Smithfield. -- ADD} Upon adoption of a system of classification of taxable property by the town of Smithfield, all ratable property in the town of Smithfield shall be classified by the assessor as follows:

(A) Class one (1) -- All ratable real estate and tangible personal property.

(B) Class two (2) -- All motor vehicles and trailers subject to the excise tax created by chapter 34 title 44.

{ADD 44-5-20.16. Property tax classification -- Smithfield. -- ADD} (A) The assessor of Smithfield on or before June 1 of each year, shall make full and fair cash valuation of all the estate, real and personal, and motor vehicles subject to taxation herein, and determine the assessed valuation of each property class.

(B) The assessor shall apply different rates of taxation against class one (1) and class two (2) to determine the tax due and payable on the property, provided however the rate for each class shall be uniform.

{ADD 44-5-20.17. Property tax classification -- Smithfield -- Tax levy determination. -- ADD} The assessor shall provide to the town council a list containing the full and fair valuation of each property class, and with the approval of the town council, annually determine the percentage of the tax levy to be apportioned each class of property and shall annually apply tax rates sufficient to produce the proportion of the total tax levy.

SECTION 2. This act shall take effect upon passage.