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 44-5-56. Property tax classification -- Eligibility. -- ADD} {ADD The town of North Providence is hereby authorized to adopt a system of property tax classification. ADD}

{ADD 44-5-57. Property tax classification in North Providence -- List of ratable property. -- ADD} {ADD Upon adoption of a system of classification of taxable property by the town of North Providence, all ratable property in the town of North Providence shall be classified by the assessor as follows:

(1) Class one -- all motor vehicles and trailers subject to the excise tax created by chapter 34 of title 44.

(2) Class two -- all ratable tangible personal property.

(3) Class three -- all residential real estate which consists of not more than five (5) dwelling units.

(4) Class four -- all commercial and industrial real estate and all residential real estate which consists of six (6) or more dwelling units. ADD}

{ADD 44-5-58. Property tax classification in North Providence -- Duties of assessor. -- ADD} {ADD (A) The assessor of the town of North Providence on or before June 1 of each year, except in 1995, in which case the time shall be on or before July 1, 1995, shall make a full and fair cash valuation of all the estate, real and personal, including motor vehicles and trailers, subject to taxation, and determine the assessed valuation of each property class.

(B) The assessor shall have the authority to apply different rates of taxation against class one, class two, class three and class four property to determine the tax due and payable on the property, provided however, that such rate of taxation shall be uniform within each class. ADD}

{ADD 44-5-59. Property tax classification in North Providence -- Procedure for adopting -- Tax levy determination. -- ADD} {ADD The assessor shall provide to the finance director a list containing the full and fair cash valuation of each property class, and with the approval of the town council, annually determine the percentages 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. ADD}

{ADD 44-5-60. Homestead exemptions in the town of North Providence. -- ADD} {ADD The mayor upon approval of the town council of the town of North Providence, is hereby authorized to annually fix the amount, if any, of homestead exemption with respect to assessed value from local taxation on taxable real property used for residential purposes in the town of North Providence and to grant homestead exemptions to the owner(s) of such residential real estate in an amount not to exceed twenty percent (20%) of the assessed value. Any such exemption shall only apply to class 3 residential property as defined in section 44-5-57 improved with a dwelling house whose owner is a resident of North Providence and who occupies such property as his/her principal residence. Any such dwelling house shall consist of no more than five (5) dwelling units. In order to determine compliance with the homestead exemption as outlined above, the town council shall provide by resolution or ordinance rules and regulations governing eligibility for the exemption established by this section.

In the event property granted an exemption under this section shall be sold or transferred during the year for which the exemption is claimed, the exemption shall be void for that portion of the year following the sale or transfer and the buyer or transferee shall be liable to the town of North Providence for any tax benefit received after such sale or transfer. ADD}

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