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.
The ramifications of H7659 on existing state law significantly alter how municipalities handle the sale of tax-delinquent properties. By transitioning from auctions to broker listings, the bill anticipates reducing the incidence of properties being sold at undervalued rates due to initially insufficient bids. Importantly, any surplus proceeds from the sale that exceed the amount owed will now be returned to the original property owners at the time of sale, mitigating the financial loss often faced by homeowners.
House Bill H7659 seeks to amend current taxation laws related to tax sales in Rhode Island by replacing the traditional auction process with a new system that utilizes licensed real estate brokers. Instead of public auctions to sell properties with unpaid taxes, collectors will list unproductive properties at their fair market value. This change aims to provide a more transparent and efficient method for managing tax-delinquent properties, potentially making the process more favorable for both the municipality and property owners involved.
Notably, discussions surrounding the bill have highlighted potential concerns from different stakeholders. Some municipal representatives and collectors may view the broker system as an additional step that complicates the tax collection process. They could argue that it introduces a layer of complexity that may obfuscate the straightforwardness of tax auctions. Conversely, advocates for the bill assert that this reform prioritizes equity and serves the interests of property owners, especially in distressing financial situations where their homes are at stake.