2023 -- H 5202

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LC000749

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO TAXATION -- COLLECTION OF TAXES GENERALLY

     Introduced By: Representative Mary Ann Shallcross Smith

     Date Introduced: January 19, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-7-25 of the General Laws in Chapter 44-7 entitled "Collection of

Taxes Generally" is hereby amended to read as follows:

     44-7-25. Sale of rights to uncollected taxes that are due and payable.

     (a) The collector, with the approval of the city or town council, is authorized to sell to a

bank or other financial institution the rights of the city or town to receive taxes, which are due and

payable as of the end of the city or town’s fiscal year and are uncollected at the time of the sale.

Any agreement executed under this section shall be filed with the city or town clerk, but does not

need to be filed or recorded under the Uniform Commercial Code, title 6A. The collector shall act

as the sole collecting agent for the bank or financial institution and shall exercise the rights under

chapters 7 — 9 of this title as to collection, enforcement of liens, and sale for nonpayment with

respect to those taxes.

     (b) Notwithstanding any provisions to the contrary, no municipality may conduct a tax sale

when litigation is pending which disputes the amount of tax owed on said property.

     SECTION 2. Chapter 44-9 of the General Laws entitled "Tax Sales" is hereby amended by

adding thereto the following section:

     44-9-57. Tax sale - Pending litigation.

     Notwithstanding any provision to the contrary, no municipality may conduct a tax sale

when litigation is pending which disputes the amount of tax owed on said property.

     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 -- COLLECTION OF TAXES GENERALLY

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     This act would prohibit the tax sale of properties when litigation is pending disputing the

amount owed.

     This act would take effect upon passage.

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