The bill amends Section 44-5-20.16 of the General Laws in Chapter 44-5, which pertains to the levy and assessment of local taxes in Smithfield. It introduces new provisions that require the town's assessor to conduct a full and fair cash valuation of property classes as identified in the bill. The assessor is also tasked with determining the percentage of the tax levy to be apportioned to each class of property and applying tax rates sufficient to produce the required proportion of the total tax levy. This aims to create a more equitable taxation system between residential and commercial properties.

Additionally, the bill redefines the classifications of property, establishing three distinct classes: Class 1 for residential real estate consisting of no more than five dwelling units, land classified as open space, and dwellings on leased land including mobile homes; Class 2 for commercial and industrial real estate, residential properties containing partial commercial or business uses, and residential real estate of more than five dwelling units; and Class 3 for all ratable tangible personal property excluding motor vehicles and trailers. The previous language regarding uniform tax rates for Class 1 and Class 2, as well as caps on Class 3 property tax rates, has been removed. The act will take effect upon passage.

Statutes affected:
1122: 44-5-20.16