The proposed bill amends Chapter 44-5 of the General Laws by introducing a new section, 44-5-20.13.2, which establishes a statewide deferment of property tax payments for qualified senior citizens, disabled citizens, and disabled veterans. Under this provision, city or town councils can enact ordinances allowing these individuals to defer property tax payments on their primary residences until the property is sold or transferred, with the deferred taxes accruing interest at a rate of six percent annually. The bill also specifies that any deferred taxes will create a lien on the property, and councils are responsible for filing a written notice of this lien in land evidence records.

Additionally, the bill outlines eligibility criteria for the deferment, stating that single-family dwellings with reverse mortgages or less than 20% equity are not eligible. It mandates that councils establish application and verification procedures for taxpayers seeking this benefit and imposes a delinquency penalty for those who do not file claims in good faith. The tax collector is required to certify the total amount of deferred tax claims to the director of finance by January 31 each year. The bill will take effect upon passage.