Chapter
524
2007 -- H 5941 AS AMENDED
Enacted 10/30/07
A N A C T
RELATING TO PROPERTY
- RHODE ISLAND REAL ESTATE TIME-SHARE ACT
Introduced By: Representatives Jackson, Rice, Gallison, O`Neill, and Sullivan
Date Introduced: March 01, 2007
It is
enacted by the General Assembly as follows:
SECTION
1. Section 34-41-1.03 of the General Laws in Chapter 34-41 entitled "Rhode
Island
Real Estate Time-Share Act" is hereby amended to read as follows:
34-41-1.03.
Status and taxation of time-share estates. -- (a) Except as expressly
modified
by this chapter and notwithstanding any contrary rule of common law, a grant of
an
estate
in a unit conferring the right of possession during a potentially infinite
number of separated
time periods
creates an estate in fee simple having the character and incidents of such an
estate at
common
law, and a grant of an estate in a unit conferring the right of possession
during five (5) or
more
separated time periods over a finite number of years equal to five (5) or more,
including
renewal
options, creates an estate for years having the character and incidents of such
an estate at
common
law.
(b) Each time-share estate constitutes for all purposes a separate estate in
real property.
Assessments
can only shall be made on the real property value of the interval
time-share estates,
or on
the real property value of the
development. Notices of assessment and bills for taxes must
be furnished
to the managing entity, if any, or otherwise to each time-share owner, but the
managing
entity is not liable for the taxes as a result thereof. In accordance herein,
each
municipality
is hereby authorized and empowered to exercise all rights and powers for the
collection
of taxes as are conferred by virtue of title 44.
(1)
Notwithstanding anything herein, and/or notwithstanding any of the provisions
of
chapter
34-36 ("Condominium Ownership Act"), 34-36.1 ("Rhode Island
Condominium Act"), or
34-41
("Rhode Island Real Estate Time-Share Act") to the contrary the tax
assessor may use any
identifiable
and commonly accepted method of appraisal as a basis for arriving at value
conclusions
for the interval time-share estate or the development, including, but not
limited to,
elements
of replacement cost, income analysis, and comparable sales of time-share
interval
estates,
similarly configured hotels, and/or real estate developments, with appropriate
deductions
for
personal property, intangible assets, and excess marketing costs, allowing for
application of
discounted
cash flow methodology where appropriate.
(2)
In making an assessment of the real property value of the interval time-share
estates
or
the development, tax assessor notices of assessment and bills for taxes must be
furnished to the
managing
entity, if any, or otherwise to each time-share owner, but the managing entity
is not
liable
for the taxes as a result thereof. In accordance herein, each municipality is
hereby
authorized
and empowered to exercise all rights and powers for the collection of taxes as
are
conferred
by virtue of title 44.
(3)
This section shall apply to fee and non-fee time-share real property.
(c)
A document transferring or encumbering a time-share estate may not be rejected
for
recordation
because of the nature or duration of that estate.
SECTION
2. This act shall take effect upon passage.
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LC01666
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