The bill amends Chapter 44-5 of the General Laws by adding a new section, 44-5-89, which grants the town council of South Kingstown the authority to annually fix the amount of a homestead exemption for local taxation on taxable real property used for residential purposes or mixed purposes, defined as a combination of residential and commercial uses. The council can establish a homestead exemption not to exceed ten percent (10%) of the assessed value of the property. 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, with the exemption amount prorated based on the percentage of the property used for residential purposes.

The town council is required to provide rules and regulations governing eligibility for the exemption. Additionally, if a property granted an exemption is sold or transferred during the year for which the exemption is claimed, the town council may provide for a proration of the homestead exemption, contingent upon the council's approval. This act is set to take effect on December 31, 2025.