2021 -- S 0739

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO TAXATION -- TAX SALES

     Introduced By: Senator Stephen R. Archambault

     Date Introduced: March 26, 2021

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 44-9-24 and 44-9-25.3 of the General Laws in Chapter 44-9 entitled

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

     44-9-24. Title absolute after foreclosure of redemption -- Jurisdiction of proceedings.

     The title conveyed by a tax collector's deed shall be absolute after foreclosure of the right

of redemption by decree of the superior court as provided in this chapter. Notwithstanding the rules

of civil procedure or the provisions of chapter 21 of title 9, no decree shall be vacated except in a

separate action instituted within six (6) months following entry of the decree and in no event for

any reason, later than six (6) months following the entry of decree. Furthermore, the action to vacate

shall only be instituted for inadequacy of notice of the petition amounting to a denial of due process

or for the invalidity of the tax sale because the taxes for which the property was sold had been paid

or were not due and owing because the property was exempt from the payment of such taxes. The

superior court shall have exclusive jurisdiction of the foreclosure of all rights of redemption from

titles conveyed by a tax collector's deed, and the foreclosure proceedings shall follow the course of

equity in a proceeding provided for in §§ 44-9-25 -- 44-9-33. If a complaint to set aside the final

decree is filed beyond the time allowed by this statute of limitations, the court must dismiss such

an untimely complaint and require the plaintiff thereof to bear any costs, expenses, and attorneys'

fees incurred by the original petitioner and/or the title insurer in responding to or defending against

the untimely complaint.

     44-9-25.3. Expedited foreclosure of the rights of redemption on account of vacancy.

     (a) Notwithstanding the provisions of §§ 44-9-25 and 44-9-25.1 following a sale of

property for taxes or fees, whomever then holds the title thereby acquired may bring a petition to

the superior court for the foreclosure of all rights of redemption after the passage of sixty (60) days

from the date of recording of the tax sale deed upon a finding by the superior court filing a sworn

affidavit with the petition that the structure(s) thereon are vacant and either vandalized and/or in a

non-code compliant condition, and/or evidence of other signs of constructive abandonment as listed

in § 44-9-25.2. A certificate from the local building official attesting to the vacant and vandalized

and/or non-code compliant condition of the structure(s) shall be prima facie evidence of the

condition, but additional evidence may be presented to the court at the foreclosure hearing to affirm

the conditions alleged in the petition. A municipality, by and through its building official, may

choose to issue a certificate as referenced in this section, however, neither a municipality nor its

building official are obligated under this section to issue said certificate. The issuance of said

certificate is discretionary and not mandatory.

     (b) In the event that a petition to foreclose the right of redemption is filed under the

provisions of this section, notice of the filing of the petition shall be given to the taxing authority

that conducted the sale by in person service, upon the taxing authority's collector, thereby ending

the period during which the taxpayer may redeem through the taxing authority.

     (c) A petitioner who has utilized this expedited foreclosure process shall commence, or

cause to be commenced, substantial rehabilitation of the structure(s) on the parcel within six (6)

months following the entry of the final foreclosure decree or be immediately subject to the non-

utilization penalty set forth in chapter 5.1 of title 44.

     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 -- TAX SALES

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     This act would require the dismissal of a complaint filed after the statute of limitations to

set aside the final decree of a tax sale foreclosure and award defense costs. This act would also

establish additional standards for abandoned and blighted properties.

     This act would take effect upon passage.

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