2017 -- H 6336

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LC002870

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO TAXATION -- TAX SALES

     

     Introduced By: Representative Robert E. Craven

     Date Introduced: June 15, 2017

     Referred To: House 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.

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     (a) The collector shall execute and deliver to the purchaser a deed of the land stating the

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

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

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

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44-9-11; the residence of the grantee; and if notice of the sale was given to the Rhode Island

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

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

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redemption. The conveyed title shall, until redemption or until the right of redemption is

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foreclosed, be held as security for the repayment of the purchase price with all intervening costs,

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terms imposed for redemption, and charges, with interest; and the premises conveyed, both before

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

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easements and restrictions lawfully existing in, upon, or over the land or appurtenant to the land.

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The deed is not valid unless recorded within sixty (60) days after the sale. If the deed is recorded,

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it is prima facie evidence of all facts essential to the validity of the title conveyed by the deed. It

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shall be the duty of the collector to record the deed within sixty (60) days of the sale and to

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forward said deed promptly to the tax sale purchaser. The applicable recording fee shall be paid

 

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by the 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, or five (5) years from the date of the tax sale if the Rhode

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Island housing and mortgage finance corporation is the tax title purchaser pursuant to §44-9-8.3,

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except for violations that are the result of intentional acts by the tax sale purchaser or his or her

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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; except, however, that if the Rhode Island housing mortgage

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finance corporation is the tax title holder pursuant to §44-9-8.3, then joint and several liability

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shall arise upon the expiration of five (5) years after the date of the sale. Nothing in this section

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shall be construed to confer any liability upon a city or town that receives tax title as a result of

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any bids being made for the land 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 owner

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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 provide that if the Rhode Island housing and mortgage finance

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corporation is a tax title purchaser pursuant to the corporation's Madeline Walker tax lien

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program, which provides assistance to owner-occupied one to three (3) family residential

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properties, then it shall not be responsible for any environmental or minimum housing standards,

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violations, or any other liability concerning the tax title property, until five (5) years after the date

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of the tax sale.

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     This act would take effect upon passage.

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