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 city of Cranston. This new provision allows the Cranston city council to set an annual homestead exemption amount for residential properties, not exceeding 20% of the assessed value. The exemption applies to properties used exclusively for residential purposes, specifically those improved with a dwelling containing fewer than three units. The city council is also tasked with creating rules and regulations to determine eligibility for this exemption. Additionally, the bill allows for the proration of the homestead exemption if the property is sold or transferred during the year it is claimed.

The act is set to take effect on December 31, 2025, and aims to provide financial relief to homeowners in Cranston by reducing their local tax burden through the establishment of this homestead exemption.