If enacted, H7316 would bring significant changes to how tax sales are conducted within the state. By eliminating the possibility of electronic bidding, the bill may enhance transparency and community engagement in the tax sale process. It seeks to ensure that potential buyers are physically present, which could potentially limit participation to those who can attend the auctions in person, possibly impacting the final sale prices of delinquent properties. This could lead to different outcomes for municipalities in terms of revenue recovery on unpaid taxes.
Summary
House Bill 7316, introduced by Representative Robert E. Craven, aims to amend the current regulations surrounding the sale of tax-delinquent properties in Rhode Island. The bill specifically focuses on the requirement that tax sales must be conducted through in-person bidding, as opposed to allowing electronic or remote procedures. This change is implemented to facilitate a more traditional public auction process, reflecting the need for direct participation in such financial transactions involving property.
Contention
The bill has sparked discussions regarding accessibility and the implications for residents unable to attend in-person auctions. Critics may argue that requiring in-person bidding could disenfranchise potential buyers who are located far away or those with mobility issues. These concerns could be a point of contention as legislators consider the balance between maintaining traditional auction methods and promoting greater access to the tax sale process.
Overall_effect
The enactment of H7316 would specifically impact the General Laws surrounding taxation and municipal revenue collection, particularly those concerning the sale of undivided parts or whole of land for tax recovery. It reinforces the state’s authority over tax sales while encouraging local municipalities to observe increased participation and possibly improved outcomes in recovering unpaid taxes.
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.