2013 -- S 0420

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - TAXATION - TAX SALES

     Introduced By: Senators Metts, Jabour, Pichardo, and Crowley

     Date Introduced: February 26, 2013

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-9-10, 44-9-21 and 44-9-25 of the General Laws in Chapter 44-9

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

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     44-9-10. Notice of sale to taxpayer. -- (a) Whether or not the person or general

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partnership to whom the estate is taxed as of December 31st prior to the tax sale is a resident of

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this state, the collector shall, in addition to the foregoing, notify the taxpayer of the time and place

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of sale first by first-class mail not less than ninety (90) days before the date of sale or any

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adjournment of the sale, and again by certified mail not less than forty (40) days before the date

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of sale or any adjournment of the sale, sent postpaid to the street address of the real estate liable

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for payment of taxes, and, if different, to the taxpayer's address listed with the tax assessor's

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office of the city or town where the real estate is located or to any other address which the

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taxpayer designates by written notice to the tax assessor, or to the address of the taxpayer stated

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on the deed recorded in the land evidence records of the city or town where the real estate is

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located or to the last known address of the taxpayer or be left at the taxpayer's last known address

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or personally served on the taxpayer not less than thirty (30) days before the date of sale or any

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adjournment of the sale, but no notice of adjournments shall be necessary other than the

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announcement made at the sale. Copies of such notices shall also be sent or hand delivered at the

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same time as prescribed above, to the Rhode Island Housing and Mortgage Finance Corporation.

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The collector shall notify Rhode Island Housing and Mortgage Finance Corporation of the tax

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sale not less than forty (40) days before the day of sale by providing either an electronic file

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encrypted by a commercially available password protected compression process and searchable

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upon decompression, or by mail or hand delivery, specifying, for each parcel of real estate liable

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for payment of taxes: (1) The name of the taxpayer; (2) The street address of the real estate; (3)

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The amount of taxes owed; and (4) The address or addresses of the taxpayer to which the notice

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of tax sale was sent by the collector. Failure to notify the Rhode Island Housing and Mortgage

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Finance Corporation as prescribed herein shall nullify any tax sale of any property with respect to

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which such notice was not given.

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      (b) Persons aged sixty-five (65) years and over or persons suffering from a disability

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may designate a third party to whom notice may be sent as required pursuant to this section by

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advising the tax assessor of the name and address of the person.

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      (c) If the estate taxed is a corporation, the notice may be sent either by registered or

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certified mail to its place of business or left at the business office of the corporation with some

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person employed there.

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      (d) In the event the person to whom the estate is taxed is listed in the records of the

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assessor and/or collector as having applied for and been granted a property tax abatement based

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wholly or partially on the age of the taxpayer, then the collector shall also notify the department

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of elderly affairs not less than forty (40) days before the date of sale by certified mail or hand

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delivery as described herein. Failure to notify the department of elderly affairs as prescribed

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herein shall nullify any tax sale of any property with respect to which such notice was not given.

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      (e) Within ninety (90) days after the end of each calendar year, the department of elderly

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affairs shall prepare and submit an annual report to the governor, the speaker of the house of

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representatives, the president of the senate and the secretary of state. The report shall contain

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information concerning the number of notices received by the department of elderly affairs

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pursuant to this section of law during the calendar year, and information concerning the identity

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of the specific parcels that might be sold in each city or town as well as a description of exactly

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what action followed on each such notice. The report shall conclude by indicating the present

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status of each case in which the department received such a notice as well as an indication as to

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whether each such case is open or closed.

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     44-9-21. Redemption from purchaser other than city or town. -- Any person may

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redeem by paying or tendering to a purchaser, other than the city or town, his or her legal

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representatives, or assigns, or to the person to whom an assignment of a tax title has been made

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by the city or town, at any time prior to the filing of the petition for foreclosure, in the case of a

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purchaser the original sum and any intervening taxes which have been paid to the municipality

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plus interest thereon at the rate of one percent (1%) per month and costs paid by him or her, plus

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a penalty as provided in section 44-9-19, or in the case of an assignee of a tax title from a city or

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town, the amount stated in the instrument of assignment, plus the above-mentioned penalty., and

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with respect to properties acquired by Rhode Island Housing and Mortgage Finance Corporation

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pursuant to section 44-9-8.3, any intervening taxes which have been paid to the municipality plus

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interest thereon at the rate of one percent (1%) per month and costs paid by Rhode Island

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Housing and Mortgage Finance Corporation, plus the above-mentioned penalty. He or she may

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also redeem the land by paying or tendering to the treasurer the sum which he or she would be

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required to pay to the purchaser or to the assignee of a tax title, in which case the city or town

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treasurer shall be constituted the agent of the purchaser or assignee. The right of redemption may

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be exercised only by those entitled to notice of the sale pursuant to sections 44-9-10 and 44-9-11.

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     44-9-25. Petition for foreclosure of redemption. -- (a) After one year from a sale of

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land for taxes, except as provided in sections 44-9-19 -- 44-9-22, whoever then holds the acquired

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title may bring a petition in the superior court for the foreclosure of all rights of redemption under

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the title. The petition shall set forth a description of the land to which it applies, with its assessed

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valuation, the petitioner's source of title, giving a reference to the place, book, and page of record,

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and other facts as may be necessary for the information of the court. Two (2) or more parcels of

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land may be included in any petition brought by any purchaser of a title or titles, if the parcels are

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in the same record ownership at the time of bringing the petition (Form 5).

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

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

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

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than one attorneys' fee to the petitioners.

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

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

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or title acquired by the Rhode Island Housing and Mortgage Corporation pursuant to section 44-

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9-8.3 of the general laws until after five (5) years from the sale of said property or title for taxes.;

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provided, however, that a petition for foreclosure of redemption may be brought after one year

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from the sale of the property for taxes where: (1) Subsequent to or within sixty (60) days prior to

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Rhode Island Housing and Mortgage Corporation's acquisition of the property or title, the interest

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

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has been entered in the records of land evidence for the municipality where the property is

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located; or (2) The property has been abandoned, as determined in accordance with section 34-

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44-2 of the general laws.

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     (d) Notwithstanding the provisions of section 42-55-24 of the general laws, following

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foreclosure of the right of redemption under this section for any property for which it acquired an

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interest pursuant to section 44-9-8.3, and subsequent sale to a third party, Rhode Island Housing

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and Mortgage Finance Corporation shall remit to the tax collector of the municipality in which

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the property is located an amount equal to the lesser of: (1) The property taxes that would have

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been due and owing for the period during which the Rhode Island Housing and Mortgage Finance

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Corporation held title to such property; and (2) The net sales proceeds realized from the sale,

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excluding all costs incurred by the Rhode Island Housing and Mortgage Finance Corporation in

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acquiring its interest in the property and foreclosing the right of redemption. Any sums due under

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this subsection shall be paid within thirty (30) days of the sale of the property to a third party.

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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 STATE AFFAIRS AND GOVERNMENT - TAXATION - TAX SALES

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     This act would provide that in the event of a tax sale of real property, the tax collector

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would notify RIHMFC not less than forty (40) days prior to the date of sale. Property obtained by

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RIHMFC at a tax sale would be redeemed from RIHMFC by paying intervening taxes plus

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interest at a rate of one percent (1%) per month plus a penalty. The act would also decrease the

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time period that RIHMFC has to wait to foreclose an owner's right of redemption from five (5)

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years to one year under certain circumstances.

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     This act would take effect upon passage.

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