It is enacted by the General Assembly as follows:
SECTION 1. Sections 44-5-57 and 44-5-60 of the General Laws in Chapter 44-5 entitled "LEVY AND ASSESSMENT OF LOCAL TAXES" are hereby amended to read as follows:
44-5-57. Property tax classification in North Providence -- List of ratable property [Repealed effective June 1, 2000.] -- 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 (5) Class five -- owner occupied mixed use combination commercial and residential properties with five (5) units or less, and that the total commercial portion of the structure cannot occupy more than fifty percent (50%) of the entire square foot size of the structure itself. ADD}
{ADD 44-5-60. Homestead exemptions in the town of North Providence [Repealed effective June 1, 2000.] -- 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 Provided further that there shall be a homestead exemption for owner occupied residential and commercial mixed use (class 5) real estate in an amount not to exceed ten percent (10%) of the assessed value. ADD}
SECTION 2. This act shall take effect upon passage and shall be retroactive to December 31, 1996.
