The enactment of S0320 would directly influence how tax sales are conducted in Rhode Island. Currently, a variety of methods may be employed to sell delinquent properties, including electronic sales. By requiring in-person bidding, the bill could enhance transparency and potentially foster a more competitive environment. However, this change may also pose challenges for some bidders, particularly those who may find it difficult to attend auctions in person due to logistical or personal constraints. Overall, these changes aim to simplify the process for tax collectors while providing more opportunities for bidders to acquire property.
Summary
Senate Bill 0320, introduced by Senator Walter S. Felag, seeks to amend current laws governing tax sales in Rhode Island. The bill mandates that tax delinquent parcels be sold through public auction conducted in-person, as opposed to electronic or remote methods. The primary goal is to establish a more traditional and tangible process for handling tax sales, ensuring that all interested parties have the opportunity to engage directly at the auction site. The proposal reflects a move towards maintaining a level of personal involvement in government sales, particularly in the context of property and land.
Contention
While the bill is straightforward in its intent, the shift to in-person bidding could raise concerns regarding accessibility and participation. Stakeholders may argue that this requirement reinstates hurdles that could discourage bidding from prospective buyers who prefer the convenience of online auctions. Additionally, the implications of requiring that the smallest undivided part of the property be sold at auction could lead to complications in property rights and ownership clarity. The necessity to sell a minimum of one percent of the land could generate disputes or confusion regarding how to execute such sales effectively.
Defines who is eligible to bid at tax sales; Authorizes Rhode Island housing and mortgage finance corporation to use excess funds collected under § 34-27-3.2 to purchase at tax sale owner-occupied residences.
Defines who is eligible to bid at tax sales; Authorizes Rhode Island housing and mortgage finance corporation to use excess funds collected under § 34-27-3.2 to purchase at tax sale owner-occupied residences.
Replaces the tax sale auction process with a real estate broker listing of the land for fair market value and any surplus proceeds realized upon sale shall be paid to the owner of the real estate at the time of the sale.
Replaces the tax sale auction process with a real estate broker listing of the land for fair market value and any surplus proceeds realized upon sale shall be paid to the owner of the real estate at the time of the sale.