2015 -- H 5295

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LC000509

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION - TAX SALES

     

     Introduced By: Representative Raymond E. Gallison

     Date Introduced: February 04, 2015

     Referred To: House Municipal Government

     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. -- (a) The

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collector shall execute and deliver to the purchaser a deed of the land, stating the cause of sale,

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the price for which the land was sold, the places where the notices were posted, the name of the

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newspaper in which the advertisement of the sale was published, the residence of the grantee, and

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if notice of the sale was given to the Rhode Island Housing and Mortgage Finance Corporation

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and or to the department of elderly affairs under the provisions of § 44-9-10, the collector shall

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include an affirmative certification as to which entity/entities received notice and the date(s) on

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which each such notice was given which shall set forth in the collector's deed. The deed shall

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convey the land to the purchaser, subject to the right of redemption. The conveyed title shall, until

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redemption or until the right of redemption is foreclosed, be held as security for the repayment of

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the purchase price, with all intervening costs, terms imposed for redemption, and charges, with

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interest, and the premises conveyed, both before and after either redemption or foreclosure, shall

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also be subject to and have the benefit of all easements and restrictions lawfully existing in, upon,

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or over the land or appurtenant to the land. The deed is not valid against intervening interests

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unless recorded within sixty (60) days after the sale., unless the collector's return required in § 44-

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9-13 shall have been recorded in a timely manner. If the deed is recorded it is prima facie

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evidence of all facts essential to the validity of the title conveyed by the deed. It shall be the duty

 

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of the collector to record the deed within sixty (60) days of the sale and to forward said deed

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promptly to the tax sale purchaser. The applicable recording fee shall be paid by the redeeming

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party. Except as provided, no sale shall give to the purchaser any right to either the possession, or

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the rents, or profits of the land until the expiration of one year after the date of the sale, nor shall

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any sale obviate or transfer any responsibility of an owner of property to comply with any statute

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of this state or ordinance of any municipality governing the use, occupancy, or maintenance or

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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. For

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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, except for violations which are the result of intentional acts by

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the tax sale purchaser or his or her 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. Nothing in this section shall be construed to confer any

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liability upon a city or town, which receives tax title as a result of any bids being made for the

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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

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owner 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.

 

LC000509 - Page 2 of 4

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     SECTION 2. This act shall take effect upon passage, and shall apply to all tax sales held

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following the effective date of the most recent amendment to § 44-9-13 [July 17, 2003].

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LC000509

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LC000509 - Page 3 of 4

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 a collector's deed is not valid against intervening interests

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unless recorded within sixty (60) days after the sale unless the collector's return was recorded in a

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timely manner.

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     This act would take effect upon passage, and would apply to all tax sales held following

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the effective date of the most recent amendment to § 44-9-13 [July 17, 2003].

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LC000509

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LC000509 - Page 4 of 4