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 44-5-67. Property tax classification -- Eligibility. -- ADD} {ADD The city of Warwick is hereby authorized to adopt a system of property tax classification. ADD}

{ADD 44-5-67.1. Property tax classification in Warwick -- List of ratable property. -- ADD} {ADD Upon adoption of a system of classification of taxable property by the city of Warwick, all ratable property in the city of Warwick shall be classified by the assessor as follows: ADD}

{ADD (1) Class 1: Residential real estate consisting of no more than five (5) dwelling units, land classified as open space, and dwellings on leased land including mobile homes. ADD}

{ADD (2) Class 2: Commercial and industrial real estate, residential properties containing partial commercial or business uses and residential real estate of more than five (5) dwelling units. ADD}

{ADD (3) Class 3: All ratable tangible personal property. ADD}

{ADD (4) Class 4: Motor vehicles and trailers subject to the excise tax created by chapter 34 of this title. ADD}

{ADD 44-5-67.2. Property tax classification in Warwick -- Duties of assessor. -- ADD} {ADD The assessor of the city of Warwick on or before June 15 of each year 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. The assessor shall have the authority to apply different rates of taxation to each class and to determine the tax due and payable on the property, provided however, that such rates shall be pursuant to an annual tax resolution approved in the same manner as is provided for budget approval in the city charter, and provided further that such rate of taxation shall be uniform within each class, and provided further, that for each year, class 1 property tax rates shall not be less than seventy-five percent (75%) of class 2 property tax rates. ADD}

SECTION 2. This act shall take effect upon passage, shall apply to the tax levy for fiscal year 1997-1998 and for each fiscal year thereafter until the next citywide revaluation or any statistical revaluation which may be required by state law.