The bill amends Chapter 44-5 of the General Laws by adding a new section, 44-5-89, which establishes a homestead exemption for the town of South Kingstown. This new provision authorizes the town council to annually determine the amount of the homestead exemption, which can be applied to the assessed value of taxable real property used for residential purposes or mixed purposes, defined as a combination of residential and commercial uses. The exemption can be granted to property owners for an amount not to exceed ten percent (10%) of the assessed value, specifically for properties used exclusively for residential purposes and improved with a dwelling containing fewer than five (5) units, or for real property used for a combination of residential and commercial uses.

For mixed-use properties, the exemption will be prorated based on the percentage of square feet of the parcel used for residential purposes, multiplied by the percentage of the homestead exemption. The town council is required to provide rules and regulations governing eligibility for the exemption by resolution or ordinance.

Additionally, the bill includes a provision that allows for the proration of the homestead exemption if the property is sold or transferred during the year for which the exemption is claimed, contingent upon the approval of the town council. The act is set to take effect on December 31, 2025.