2019 -- S 0594

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LC002036

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO TAXATION -- TAX SALES

     Introduced By: Senator Harold M. Metts

     Date Introduced: March 14, 2019

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 44-9-8.3 and 44-9-25 of the General Laws in Chapter 44-9 entitled

"Tax Sales" are hereby amended to read as follows:

     44-9-8.3. Sale of owner-occupied residential property to housing agency.

     (a) Where the property subject to tax sale is owner-occupied residential and contains

three (3) or less units, the Rhode Island Housing and Mortgage Finance Corporation shall have a

right of first refusal to acquire the tax lien at tax sale, and may assist the owner to discharge the

lien or take title and acquire the property in its own name pursuant to regulations to be developed

by the corporation, consistent with its purposes. The corporation shall notify the collector of its

intention to exercise this right by the later of: (i) thirty (30) days from its receipt of the certified

mail notice set forth in § 44-9-10; or (ii) ten (10) days before the date of sale or any adjournment

of the sale. Failure of the corporation to notify the collector as provided herein shall extinguish

the right of first refusal provided in this section.

     (b) There shall be an advisory board consisting of six (6) members: one person appointed

by the Rhode Island League of Cities and Towns; one person appointed by the Consumer Credit

Counseling Services of Rhode Island Rhode Island Housing Resources Commission; one person

appointed by Rhode Island Legal Services; one person appointed by the Housing Network of

Rhode Island, one appointed by the Urban League of Rhode Island Omni Development

Corporation and one appointed by the Center for Hispanic Policy and Advocacy. The advisory

committee shall provide advice and recommendations to the governing board of the Rhode Island

Housing and Mortgage Finance Corporation regarding that corporation's activities under this

section. The members of the advisory board shall receive no compensation for the performance of

their duties, but may be reimbursed for reasonable expenses incurred in carrying out their duties.

     44-9-25. Petition for foreclosure of redemption.

     (a) After one year from a sale of land for taxes, except as provided in §§ 44-9-19 -- 44-9-

22, whoever then holds the acquired title may bring a petition in the superior court for the

foreclosure of all rights of redemption under the title. The petition shall set forth a description of

the land to which it applies, with its assessed valuation, the petitioner's source of title, giving a

reference to the place, book, and page of record, and other facts as may be necessary for the

information of the court. Two (2) or more parcels of land may be included in any petition brought

by any purchaser of a title or titles, if the parcels are in the same record ownership at the time of

bringing the petition (Form 5).

     (b) No more than one foreclosure petition may be filed for each tax deed regardless of the

number of tax title holders having an interest under such deed. If more than one petition is filed,

the petitions shall be consolidated for hearing by the court. The court shall not award more than

one attorneys' fee to the petitioners.

     (c) Notwithstanding the provisions of subsection (a) of this section, no petition for

foreclosure of redemption shall be filed or entertained by any court with respect to any property

or title acquired by the Rhode Island Housing and Mortgage Corporation pursuant to § 44-9-8.3

of the general laws until after five (5) years from the sale of said property or title for taxes.

     (d) Notwithstanding the provisions of subsection (c) of this section, Rhode Island

Housing and Mortgage Finance Corporation may bring a petition for the foreclosure of

redemption after one year from the sale of the property for taxes where:

     (1) Subsequent to or within sixty (60) days prior to the Rhode Island Housing and

Mortgage Finance Corporation’s acquisition of the property or title, the interest of the owner-

occupant in the property has been foreclosed by a mortgagee and a foreclosure deed has been

entered in the records of land evidence for the municipality where the property is located and the

property is no longer owner-occupied or occupied by a lawful tenant; or

     (2) The property has been abandoned, as determined in accordance with § 34-44-.

     SECTION 2. Section 44-5.1-3 of the General Laws in Chapter 44-5.1 entitled "Real

Estate Nonutilization Tax" is hereby amended to read as follows:

     44-5.1-3. Imposition of tax.

     (a) Providence. The city of Providence is empowered to impose a tax upon the privilege

of utilizing property as vacant and abandoned property within the city during any privilege year

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commencing with the privilege year beginning January 1, 1984, and every privilege year

thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

     (b) Pawtucket. The city of Pawtucket is empowered to impose a tax upon the privilege of

utilizing property as vacant and abandoned property within the city during any privilege year

commencing with the privilege year beginning January 1, 1997, and every privilege year

thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

     (c) Cranston. The city of Cranston is empowered to impose a tax upon the privilege of

utilizing property as vacant and abandoned property within the city during any privilege year

commencing with the privilege year beginning January 1, 1997, and every privilege year

thereafter. The tax shall be in addition to any other taxes authorized by the general or public laws.

     (d) North Providence. The town of North Providence is empowered to impose a tax upon

the privilege of utilizing property as vacant and abandoned property within the town during any

privilege year commencing with the privilege year beginning January 1, 2001, and every

privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general

or public laws.

     (e) East Providence. The city of East Providence is empowered to impose a tax upon the

privilege of utilizing property as vacant and abandoned property within the city during any

privilege year commencing with the privilege year beginning January 1, 2000, and every

privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general

or public laws.

     (f) Woonsocket. The city of Woonsocket is empowered to impose a tax upon the

privilege of utilizing property as vacant and abandoned property within the city during any

privilege year commencing with the privilege year beginning January 1, 2000, and every

privilege year thereafter. The tax shall be in addition to any other taxes authorized by the general

or public laws.

     (g) Cities and towns. Any city or town not previously empowered is empowered to

impose a tax upon the privilege of utilizing vacant and abandoned property within the city or

town during any privilege year commencing with the privilege year beginning January 1, 2002,

and every privilege year thereafter. The tax shall be in addition to any other taxes authorized by

the general or public laws.

     (h) Implementing ordinance. Cities and towns that are empowered to impose this tax and

who choose to impose this tax shall adopt an implementing ordinance. The ordinance shall:

     (1) Designate a municipal entity responsible for determining which properties are vacant

and abandoned;

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     (2) Establish the mechanism by which the tax is imposed and how the tax is removed

from the property once the property has been rehabilitated;

     (3) Designate a reviewing entity to review and approve a development plan submitted by

a nonprofit housing organization or an abutter;

     (4) Empower the tax assessor to abate the tax if it is imposed in error or if a nonprofit

housing organization or an abutter acquires the property for rehabilitation and submits a

development plan that complies with the provisions of subdivision (i)(2) of this section;

     (i) Exemptions for abutters and nonprofit housing organizations.

     (1) The non-utilization tax authorized by this chapter shall not be imposed on property

owned by an abutter or a nonprofit housing organization if:

     (i) The abutter or nonprofit housing organization submits a proposed development plan

which has been approved by the Rhode Island housing resources commission or Rhode Island

housing and mortgage finance corporation to the reviewing entity;

     (ii) The proposed development plan contains a reasonable timetable for the development

or reuse of the property; and

     (iii) The reviewing entity determines that the proposed development plan is in accordance

with the approved comprehensive plan of the city or town and approves it.

     (2) The reviewing entity shall deliver a copy of the approved development plan to the tax

assessor who shall certify the property as exempt from the non-utilization tax.

     (3) Failure of the nonprofit housing organization or abutter, without good cause, to carry

out the development or reuse of the property in accordance with the timetable set forth in the

approved development plan shall result in the property being subject to the non-utilization tax as

of the first date of assessment following the expiration of the timetable in the approved

development plan.

     (4) The decision of the reviewing entity denying approval of a development plan may be

appealed as provided in § 44-5.1-6.

     (j) Exemption for housing agency. The non-utilization tax authorized by this section shall

not be imposed on property on which the Rhode Island housing and mortgage finance corporation

holds an interest pursuant to § 44-9-8.3.

     SECTION 3. 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

***

     This act would give the Rhode Island housing and mortgage finance corporation

(RIHMFC) the authority to bring foreclosure petitions after one year from the sale of property for

taxes if the property is foreclosed and no longer owner-occupied or has been abandoned, and

changes members of the advisory board which provides advice to RIHMFC and exempts

RIHMFC owned property from being assessed a non-utilization tax.

     This act would take effect upon passage.

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