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, specifically for the town of Charlestown. This new provision authorizes the town council to establish an annual homestead exemption for residential and mixed-use properties, allowing exemptions of up to ten percent (10%) 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 outlines that the exemption amount for mixed-use properties will be prorated based on the square footage used for residential purposes.

Additionally, the bill allows for the proration of the homestead exemption if a property is sold or transferred during the year it is claimed, contingent upon the approval of the town council. The council is tasked with creating rules and regulations to determine eligibility for the exemption. This act is set to take effect on December 31, 2025.