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 section:

{ADD 44-5-70. Homestead exemption in the city of East Providence. -- ADD} {ADD The city council of the city of East Providence 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 in the city of East Providence and to grant homestead exemptions to the owner(s) of such residential real estate in an amount not to exceed fifteen percent (15%) 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 four (4) units. 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. ADD}

SECTION 2. This act shall take effect upon passage and shall be retroactive to December 31, 1996.