The bill amends Chapter 44-5 of the General Laws regarding the levy and assessment of local taxes by introducing a new section, 44-5-89, which establishes a homestead exemption for the town of South Kingstown. This exemption allows the town council to set an annual homestead exemption amount for residential or mixed-use properties, not exceeding ten percent of the assessed value. The exemption applies to properties used exclusively for residential purposes with fewer than five units, as well as to properties with a combination of residential and commercial uses. The bill also stipulates that the town council will create rules and regulations to determine eligibility for the exemption.

Additionally, the bill provides for the proration of the homestead exemption in cases where property is sold or transferred during the year the exemption is claimed, allowing the town council to adjust the exemption based on the new ownership status. The act is set to take effect on December 31, 2025.