It is enacted by the General Assembly as follows:

SECTION 1. Section 44-7-14 of the General Laws in Chapter 44-7 entitled "Cancellation of Taxes -- Erroneous Uncollectible or Illegal Taxes -- Incentive to Rehabilitative Property" is hereby amended to read as follows:

44-7-14. Cancellation of taxes -- Erroneous, uncollectable, or illegal taxes -- Incentive to rehabilitate property. -- The city council of any city or the town council of any town may cancel in whole or in part, taxes assessed upon personal, mixed, or real property:

(1) When there is a mistake in the assessment of a tax, and the tax assessors have certified to the fact in writing to the body authorized by the provisions of this section to cancel taxes, setting forth the nature of the mistake, the valuation of the property, the amount of the tax assessed, and the name of the person to whom the property was taxed.

(2) When a person dies leaving no estate, or removes from the state and owns no property or interest therein within the state, and the tax collector or person acting in the capacity of tax collector certifies in writing to the body authorized by the provisions of this section to cancel taxes, as to the facts in the case.

(3) When the council is advised by the town solicitor, or the person acting in the capacity of the solicitor, by written opinion that a tax is illegal, and the opinion has been concurred in by the tax administrator.

(4) When the council is acting pursuant to sections 45-44-1 -- 45-44-13 or a properly enacted city or town ordinance intended to encourage the renovation, rehabilitation, or construction of tax delinquent properties.

{ADD (5) The town council of the town of Exeter may cancel or forgive, in whole or in part, taxes assessed in the town of Exeter prior to January 1, 1994, when the taxpayer, under oath, proves to the satisfaction of the Exeter Town Council: ADD}

{ADD (a) that the subject tax was paid or that the non-payment of said tax was the direct result of the material error, neglect or omission of the Exeter tax collector; ADD}

{ADD (b) that the taxpayer relied in good faith to his or her detriment upon such error, neglect or omission; and ADD}

{ADD (c) that a gross inequity would arise if such tax, penalty and any interest accrued thereon were to be charged or collected accordingly. ADD}

SECTION 2. This act shall take effect upon passage and any acts inconsistent herewith are hereby repealed.