2014 -- H 7905

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LC004998

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO TAXATION - TAX SALES

     Introduced By: Representatives Gallison, Lally, and Keable

     Date Introduced: March 11, 2014

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-9-12 of the General Laws in Chapter 44-9 entitled "Tax Sales" is

hereby amended to read as follows:

     44-9-12. Collector's deed -- Rights conveyed to purchaser -- Recording. -- (a) The

collector shall execute and deliver to the purchaser a deed of the land, stating the cause of sale,

the price for which the land was sold, the places where the notices were posted, the name of the

newspaper in which the advertisement of the sale was published, the residence of the grantee, and

if notice of the sale was given to the Rhode Island Housing and Mortgage Finance Corporation

and or to the department of elderly affairs under the provisions of section 44-9-10, the collector

shall include an affirmative certification as to which entity/entities received notice and the date(s)

on which each such notice was given which shall set forth in the collector's deed. The deed shall

convey the land to the purchaser, subject to the right of redemption. The conveyed title shall, until

redemption or until the right of redemption is foreclosed, be held as security for the repayment of

the purchase price, with all intervening costs, terms imposed for redemption, and charges, with

interest, and the premises conveyed, both before and after either redemption or foreclosure, shall

also be subject to and have the benefit of all easements and restrictions lawfully existing in, upon,

or over the land or appurtenant to the land. The deed is not valid against intervening interests

unless recorded within sixty (60) days after the sale., unless the collector's return required in § 44-

9-13 shall have been recorded in a timely manner. If the deed is recorded it is prima facie

evidence of all facts essential to the validity of the title conveyed by the deed. It shall be the duty

of the collector to record the deed within sixty (60) days of the sale and to forward said deed

promptly to the tax sale purchaser. The applicable recording fee shall be paid by the redeeming

party. Except as provided, no sale shall give to the purchaser any right to either the possession, or

the rents, or profits of the land until the expiration of one year after the date of the sale, nor shall

any sale obviate or transfer any responsibility of an owner of property to comply with any statute

of this state or ordinance of any municipality governing the use, occupancy, or maintenance or

conveyance of property until the right of redemption is foreclosed.

      (b) The rents to which the purchaser shall be entitled after the expiration of one year and

prior to redemption shall be those net rents actually collected by the former fee holder or a

mortgagee under an assignment of rents. Rents shall not include mere rental value of the land, nor

shall the purchaser be entitled to any rent for owner-occupied single-unit residential property. For

purposes of redemption, net rents shall be computed by deducting from gross rents actually

collected any sums expended directly or on behalf of the tenant from whom the rent was

collected. Such expenditure shall include utilities furnished, repairs made to the tenanted unit, and

services provided for the benefit of the tenant. However, mortgagee payments, taxes and sums

expended for general repair and renovation (i.e. capital improvements) shall not be deductible

expenses in the computation of the rent.

      (c) This tax title purchaser shall not be liable for any enforcement or penalties arising

from violations of environmental or minimum housing standards prior to the expiration of one

year from the date of the tax sale, except for violations which are the result of intentional acts by

the tax sale purchaser or his or her agents.

      (d) Upon the expiration of one year after the date of the sale, the tax title holder shall be

jointly and severally liable with the owner for all responsibility and liability for the property and

shall be responsible to comply with any statute of this state or ordinance of any municipality

governing the use, occupancy, or maintenance or conveyance of the property even prior to the

right of redemption being foreclosed. Nothing in this section shall be construed to confer any

liability upon a city or town, which receives tax title as a result of any bids being made for the

land offered for sale at an amount equal to the tax and charges.

      (e) In the event that the tax lien is acquired by the Rhode Island Housing and Mortgage

Finance Corporation, and said corporation has paid the taxes due, title shall remain with the

owner of the property, subject to the right of the corporation to take the property in its own name,

pursuant to applicable statutes and any regulations duly adopted by the corporation. Upon such

notice by the corporation, the collector shall execute and deliver a deed to the corporation as

herein provided.

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     SECTION 2. This act shall take effect upon passage, and shall apply to all tax sales held

following the effective date of the most recent amendment to § 44-9-13 [July 17, 2003].

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - TAX SALES

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     This act would amend the wording of the statute governing the recording of tax deeds to

interface with the statute governing the recording of tax collectors' returns, and would also restore

wording inadvertently omitted when the statute was last amended.

     This act would take effect upon passage, and would apply to all tax sales held following

the effective date of the most recent amendment to § 44-9-13 [July 17, 2003].

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LC004998

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