This bill amends Chapter 44-5 of the General Laws by adding a new section, 44-5-79.1, specifically for the town of Little Compton. It authorizes the town council, upon approval by the financial town meeting, to establish a homestead exemption for residential properties. The exemption can be set annually, starting 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 adjust this percentage by a majority vote, within a range of not less than five percent (5%) and not more than fifteen percent (15%).

The bill outlines eligibility criteria for the homestead exemption: all residents who own the residential dwelling in which they reside and are registered to vote in Little Compton will automatically qualify and will not need 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.

Additionally, residents who own more than one residential dwelling in Little Compton may apply for a homestead exemption on a second dwelling using the same process. The bill also states that a residential dwelling leased for at least twelve (12) months to a full-time resident may be eligible for a homestead exemption, provided that rental payments remain the same at the start of the next twelve (12) month lease cycle following the exemption's approval. The Little Compton tax assessor will supply application forms for both owner-occupied and rental property homestead exemptions and will determine eligibility based on residency criteria. The act will take effect upon passage.