This bill amends Chapter 44-5 of the General Laws by adding a new section, 44-5-79.1, which establishes a homestead exemption for residential properties in the town of Little Compton. The town council, upon approval by the financial town meeting, is authorized to annually fix the amount of the homestead exemption based on the assessed value of taxable real property used for residential purposes. The exemption will initially be set at ten percent (10%) of the mean assessed value of all taxable real properties in Little Compton. In subsequent fiscal years, the financial town meeting may amend this percentage by a majority vote, within a range of not less than five percent (5%) and not more than fifteen percent (15%).

Eligibility for the homestead exemption is outlined as follows: all residents who own the residential dwelling in which they reside and are registered to vote in Little Compton will automatically qualify without needing to file an application. Non-registered voters who are residents and own their dwelling may apply for the exemption by demonstrating residency with a Rhode Island driver's license or other official identification, along with a utility bill showing their name and address. Residents who own more than one residential dwelling in Little Compton may also apply for a homestead exemption on a second dwelling using the same application process.

Additionally, a residential dwelling leased for at least twelve (12) months to a full-time resident may be eligible for a homestead exemption, provided that the rental payments remain the same at the start of the next twelve (12) month lease cycle following the approval of the exemption. The Little Compton tax assessor will supply application forms for rental property homestead exemptions, which must be filed along with the lease agreement and additional identifying information for the tenant(s) as determined by the tax assessor.

The bill defines "resident" as an individual whose principal place of residence is located within Little Compton and who occupies the dwelling for more than six (6) months of the calendar year. The act will take effect upon passage.