The bill amends Chapter 44-5 of the General Laws by adding a new section, 44-5-89, which grants the city council of Cranston the authority to annually fix the amount of a homestead exemption for local taxation on taxable real property used for residential purposes. The exemption can be granted to the owner or owners of residential real estate, with an amount not to exceed twenty percent (20%) of the assessed value of the property. The exemption applies to property used exclusively for residential purposes and improved with a dwelling containing fewer than three (3) units, or real property used for residential use. The prorated amount of the exemption will be calculated based on the percentage of square feet of the parcel used for residential purposes, multiplied by the percentage of the homestead exemption.

The city council is required to provide rules and regulations governing eligibility for the exemption through a resolution or ordinance. Additionally, if property granted an exemption is sold or transferred during the year for which the exemption is claimed, the city council may provide for a proration of the homestead exemption in cases where title passes from those entitled to claim the exemption to those who are not entitled to claim it. This act is set to take effect on December 31, 2025.