Senate Bill #843 (2017)

AN ACT RELATING TO TAXATION -- TAX SALES

Provides that if the Rhode Island housing and mortgage finance corporation is a tax title purchaser, it shall not be liable for violations in connection with the tax title property, prior to the expiration of five (5) years from the date of the tax sale.

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Changes since original draft

  • 2017 – S 0843
  • 2017 – S 0843 SUBSTITUTE A
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  • LC002184
  • LC002184/SUB A
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  • S T A T E O F R H O D E I S L A N D
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2017
  • ____________
  • A N A C T
  • RELATING TO TAXATION – TAX SALES
  • S TATE OF RHODE IS L AND
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2017
  • ____________
  • A N A C T
  • RELATING TO TAXATION – TAX SALES
  • Introduced By: Senator Elizabeth A. Crowley
  • Date Introduced: April 27, 2017
  • Referred To: Senate Judiciary
  • (Rhode Island Housing)
  • 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:
  • It is enacted by the GeneralAssembly as follows:
  • SECTION 1. Section 44-9-12 of the GeneralLaws 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 names and addresses of all parties who were sent notice in accordance with the provisions of § 44-9-10 and 44-9-11; 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 § 44-9-10. 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 unless recorded within sixty (60) days after the sale. 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 purchaser. The purchaser shall be reimbursed for said fee upon redemption by the redeeming party, if any. 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, or five (5) years from the date of the tax sale if the Rhode Island housing and mortgage finance corporation is the tax title purchaser, except for violations that 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; except, however, that if the Rhode Island housing mortgage finance corporation is the tax title holder, then joint and several liability shall arise upon the expiration of five (5) years after the date of the sale. Nothing in this section shall be construed to confer any liability upon a city or town that 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.
  • SECTION 2. This act shall take effect upon passage. ======== LC002184 ========
  • (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 names and addresses of all parties who were sent notice in accordance with the provisions of § 44-9-10 and 44-9-11; 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 § 44-9-10. 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 allintervening 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 unless recorded within sixty (60) days after the sale. 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 purchaser. The purchaser shall be reimbursed for said fee upon redemption by the redeeming party, if any. Except as provided, no sale shallgive 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 shallnot include mere rentalvalue 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, or five (5) years from the date of the tax sale if the Rhode Island housing and mortgage finance corporation is the tax title purchaser pursuant to §44-9-8.3, except for violations that 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 shallbe 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; except, however, that if the Rhode Island housing mortgage finance corporation is the tax title holder pursuant to §44-9-8.3, then joint and several liability shall arise upon the expiration of five (5) years after the date of the sale. Nothing in this section shall be construed to confer any liability upon a city or town that receives tax title as a result of any bids being made for the land offered for sale at an amount equalto 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 shallremain with the owner of the property, subject to the right of the corporation to take the property in its own name,
  • LC002184/SUB A - Page 2of 4 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.
  • SECTION 2. This act shalltake effect upon passage. ======== LC002184/SUB A ========
  • LC002184/SUB A - Page 3of 4
  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • RELATING TO TAXATION – TAX SALES
  • A N A C T
  • RELATING TO TAXATION – TAX SALES
  • ***
  • This act would provide that if the Rhode Island housing and mortgage finance corporation is a tax title purchaser, then it shall not be liable for environmental or minimum- housing standards, or any other liability in connection with the tax title property, prior to the expiration of five (5) years from the date of the tax sale.
  • This act would take effect upon passage. ======== LC002184 ========
  • This act would provide that if the Rhode Island housing and mortgage finance corporation is a tax title purchaser pursuant to the corporation's Madeline Walker tax lien program, which provides assistance to owner-occupied one to three (3) family residential properties, then it shall not be responsible for any environmental or minimum housing standards, violations, or any other liability concerning the tax title property, until five (5) years after the date of the tax sale.
  • This act would take effect upon passage. ======== LC002184/SUB A ========
  • LC002184/SUB A - Page 4of 4

Votes

NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the House or Senate Journal from the day of the vote.

Floor vote for Passage

June 06, 2017 at 4:59pm
Yeas: 33 / Nays: 1 / Not voting: 3 / Recused: 0
Legislator Vote
Sen. Algiere Y
Sen. Archambault Y
Sen. Calkin Y
Sen. Ciccone Y
Sen. Conley Y
Sen. Cote Y
Sen. Coyne Y
Sen. Crowley Y
Sen. DaPonte Y
Sen. DiPalma Y
Sen. Doyle Y
Sen. Felag Y
Sen. Fogarty Y
Sen. Gallo Y
Sen. Gee Y
Sen. Goldin Y
Sen. Goodwin Y
Sen. Jabour Y
Sen. Kettle Y
Sen. Lombardi Y
Sen. Lombardo Y
Sen. Lynch Prata Y
Sen. McCaffrey NV
Sen. Metts N
Sen. Miller Y
Sen. Morgan Y
Sen. Nesselbush Y
Sen. Paolino Y
Sen. Pearson Y
Sen. Picard Y
Sen. Quezada Y
Sen. Raptakis NV
Sen. Ruggerio Y
Sen. Satchell NV
Sen. Seveney Y
Sen. Sheehan Y
Sen. Sosnowski Y

Floor vote for RELATING TO TAXATION -- TAX SALE

September 19, 2017 at 2:37pm
Yeas: 69 / Nays: 0 / Not voting: 6 / Recused: 0
Legislator Vote
Rep. Abney Y
Rep. Ackerman Y
Rep. Ajello Y
Rep. Almeida Y
Rep. Amore Y
Rep. Azzinaro Y
Rep. Barros Y
Rep. Bennett Y
Rep. Blazejewski Y
Rep. Canario Y
Rep. Carson NV
Rep. Casey Y
Rep. Casimiro Y
Rep. Chippendale Y
Rep. Corvese Y
Rep. Costantino Y
Rep. Coughlin Y
Rep. Craven Y
Rep. Cunha Y
Rep. Diaz NV
Rep. Donovan Y
Rep. Edwards Y
Rep. Fellela Y
Rep. Filippi Y
Rep. Fogarty Y
Rep. Giarrusso Y
Rep. Handy Y
Rep. Hearn Y
Rep. Hull Y
Rep. Jacquard NV
Rep. Johnston Y
Rep. Kazarian Y
Rep. Keable Y
Rep. Kennedy Y
Rep. Knight Y
Rep. Lancia Y
Rep. Lima Y
Rep. Lombardi Y
Rep. Maldonado Y
Rep. Marshall Y
Rep. Marszalkowski Y
Rep. Mattiello Y
Rep. McEntee Y
Rep. McKiernan Y
Rep. McLaughlin Y
Rep. McNamara Y
Rep. Mendonca NV
Rep. Messier Y
Rep. Morgan Y
Rep. Morin Y
Rep. Nardolillo Y
Rep. Newberry Y
Rep. Nunes Y
Rep. O'Brien Y
Rep. O'Grady Y
Rep. Perez Y
Rep. Phillips Y
Rep. Price NV
Rep. Quattrocchi NV
Rep. Ranglin-Vassell Y
Rep. Regunberg Y
Rep. Roberts Y
Rep. Ruggiero Y
Rep. Serpa Y
Rep. Shanley Y
Rep. Shekarchi Y
Rep. Slater Y
Rep. Solomon Y
Rep. Tanzi Y
Rep. Tobon Y
Rep. Ucci Y
Rep. Vella-Wilkinson Y
Rep. Walsh Y
Rep. Williams Y
Rep. Winfield Y