2022 -- H 6670

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LC003368

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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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 06, 2022

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

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

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Taxes Generally" is hereby amended to read as follows:

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

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

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

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

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

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

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

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

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respect to those taxes.

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

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

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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 TAXATION -- COLLECTION OF TAXES GENERALLY

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

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amount owed.

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     This act would take effect upon passage.

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LC003368

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