The bill amends Chapter 44-5 of the General Laws by adding a new section, 44-5-89, which grants the town council of Charlestown the authority to annually fix the amount, if any, 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 exemption may not exceed ten percent (10%) of the assessed value of the property. It 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 outlines a method for prorating the exemption based on the percentage of the property used for residential purposes, which is calculated by multiplying the percentage of square feet of the parcel used for residential purposes by the percentage of the homestead exemption. The town council is required to provide rules and regulations governing eligibility for the 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, contingent upon the approval of the town council. This act is set to take effect on December 31, 2025.