2016 -- S 2315

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LC004417

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION -- TAX SALES

     

     Introduced By: Senators Nesselbush, Crowley, Doyle, and Conley

     Date Introduced: February 09, 2016

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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

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hereby amended to read as follows:

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

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

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

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newspaper in which the advertisement of the sale was published; the names and addresses of all

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parties who were sent notice in accordance with the provisions of § 44-9-10 and 44-9-11; the

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residence of the grantee; and if notice of the sale was given to the Rhode Island Housing and

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Mortgage Finance Corporation and or to the department of elderly affairs under the provisions of

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§ 44-9-10. The deed shall convey the land to the purchaser, subject to the right of redemption.

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The conveyed title shall, until redemption or until the right of redemption is foreclosed, be held as

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security for the repayment of the purchase price with all intervening costs, terms imposed for

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redemption, and charges, with interest, and the premises conveyed, both before and after either

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redemption or foreclosure, shall also be subject to, and have the benefit of, all easements and

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restrictions lawfully existing in, upon, or over the land or appurtenant to the land. The deed is not

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valid unless recorded within sixty (60) days after the sale. If the deed is recorded, it is prima facie

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

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

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

 

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party purchaser. The purchaser shall be reimbursed for said fee upon redemption by the

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

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the possession, or the rents, or profits of the land until the expiration of one year after the date of

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the sale, nor shall any sale obviate or transfer any responsibility of an owner of property to

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comply with any statute of this state or ordinance of any municipality governing the use,

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occupancy, or maintenance or conveyance of property until the right of redemption is foreclosed.

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

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

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

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

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

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

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

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

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

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expenses in the computation of the rent.

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

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

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

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tax sale purchaser or his or her agents.

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

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

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

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

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

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

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

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

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

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

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

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

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herein provided.

 

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     SECTION 2. This act shall take effect upon passage.

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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 require the purchaser, instead of the redeeming party, of a tax sale

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property, to pay the recording fee for the collector's deed, with reimbursement by the redeeming

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party, if any.

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     This act would take effect upon passage.

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