Bill Sponsors
Gu, Murray, Bissaillon, DiPalma, Burke, DiMario, and Famiglietti
Committee
Senate Judiciary
Summary
Select
This legislation amends the procedures for tax sales, which occur when a municipality sells a property due to unpaid taxes. It mandates that tax collectors must provide notice of a pending tax sale to the Rhode Island Housing and Mortgage Finance Corporation. Additionally, if the property owner receives an age-based tax abatement, the Office of Healthy Aging must also be notified. The bill allows for electronic delivery of these notices. Crucially, failure to provide these specific notices results in the nullification of the tax sale. It also requires the Office of Healthy Aging to report annually on these cases.
Sponsor
Analysis
Pros for Progressives
- Strengthens the social safety net by ensuring that state agencies responsible for housing and the elderly are alerted before vulnerable individuals lose their homes to tax sales.
- Provides a crucial check on the power of local governments to seize property, ensuring that procedural due process is strictly followed to protect low-income and elderly residents.
- Mandates data collection and reporting by the Office of Healthy Aging, which creates transparency regarding how tax sales affect the elderly population and allows for better policy decisions.
Cons for Progressives
- Does not explicitly provide financial assistance or debt forgiveness to the homeowners, relying instead on notification and potential bureaucratic intervention.
- The reliance on electronic manifests and inter-agency communication could still result in administrative errors where vulnerable people fall through the cracks despite the new rules.
- While it pauses the process or nullifies bad sales, it does not address the underlying systemic economic issues that cause residents to fall behind on property taxes in the first place.
Pros for Conservatives
- Protects private property rights by establishing strict procedural hurdles that the government must clear before seizing and selling a citizen's real estate.
- Enforces the rule of law by explicitly stating that failure to follow statutory notice requirements results in the immediate nullification of the government's action.
- Ensures that homeowners are given every opportunity to be informed and rectify their debts before the drastic step of asset forfeiture is taken by the state.
Cons for Conservatives
- Increases government bureaucracy and red tape by forcing local tax collectors to coordinate with state-level agencies like RIHousing and the Office of Healthy Aging.
- Potentially delays the collection of necessary revenue for towns and cities by adding layers of administrative procedure to the tax sale process.
- Expands the scope and database management responsibilities of state agencies, which could lead to increased administrative costs funded by taxpayers.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Property Taxpayers
- Municipal Tax Collectors
- Elderly Homeowners
- Rhode Island Housing and Mortgage Finance Corporation
- Office of Healthy Aging
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
None
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/09/2026 Introduced, referred to Senate Judiciary
Bill Text
SECTION 1. Section 44-9-10 of the General Laws in Chapter 44-9 entitled "Tax Sales" is hereby amended to read as follows:
44-9-10. Notice of sale to taxpayer.
(a) Whether or not the person or general partnership to whom the estate is taxed as of December 31st prior to the tax sale is a resident of this state, the collector shall, in addition to the foregoing, notify the taxpayer of the time and place of sale first by first-class mail not less than ninety (90) days before the date of sale or any adjournment of the sale, and again by certified mail not less than forty (40) days before the date of sale or any adjournment of the sale, sent postpaid to the street address of the real estate liable for payment of taxes, and, if different, to the taxpayer’s address listed with the tax assessor’s office of the city or town where the real estate is located or to any other address which the taxpayer designates by written notice to the tax assessor, or to the address of the taxpayer stated on the deed recorded in the land evidence records of the city or town where the real estate is located or to the last-known address of the taxpayer or be left at the taxpayer’s last-known address or personally served on the taxpayer not less than thirty (30) days before the date of sale or any adjournment of the sale, but no notice of adjournments shall be necessary other than the announcement made at the sale. Copies of such notices shall be provided to Rhode Island Housing and Mortgage Finance Corporation by mail or hand delivery, or a manifest of such notices shall be electronically delivered in a machine-readable format through secure means established by the Rhode Island Housing and Mortgage Finance Corporation not less than forty (40) days before the date of sale or any adjournment of the sale. Failure to notify the Rhode Island Housing and Mortgage Finance Corporation as prescribed herein shall nullify any tax sale of any property with respect to which such notice was not given. Failure to notify the taxpayer as prescribed herein shall nullify any tax sale of any property with respect to which such notice was not given. The notice required to be provided to the taxpayer pursuant to the provisions of this subsection shall include a current copy of § 44-9-10, with a headline in at least twelve (12) point font at the top: “The city/town is required to provide proper notice to you, the taxpayer, before conducting a tax sale, as described below:” and include current contact information including email address, phone number, and physical mailing address for the Rhode Island mortgage finance corporation.
(b) Persons aged sixty-five (65) years and over or persons suffering from a disability may designate a third party to whom notice may be sent as required pursuant to this section by advising the tax assessor of the name and address of the person.
(c) If the estate taxed is a corporation, the notice may be sent either by registered or certified mail to its place of business or left at the business office of the corporation with some person employed there.
(d) In the event the person to whom the estate is taxed is listed in the records of the assessor and/or collector as having applied for and been granted a property tax abatement based wholly or partially on the age of the taxpayer, then the collector shall also notify the office of healthy aging by mail, hand delivery, or a manifest of such notices shall be electronically delivered in a machine- readable format through the secure means established by the Rhode Island Housing and Mortgage Finance Corporation pursuant to subsection (a), not less than forty (40) days before the date of sale. Failure to notify the office of healthy aging as prescribed herein shall nullify any tax sale of any property with respect to which such notice was not given.
(e) Within ninety (90) days after the end of each calendar year, the office of healthy aging shall prepare and submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the secretary of state. The report shall contain information concerning the number of notices received by the office of healthy aging pursuant to this section of law during the calendar year and information concerning the identity of the specific parcels that might be sold in each city or town as well as a description of exactly what action followed on each such notice. The report shall conclude by indicating the present status of each case in which the division received such a notice as well as an indication as to whether each such case is open or closed. LC003799 - Page 2 of 4
SECTION 2. This act shall take effect upon passage.
44-9-10. Notice of sale to taxpayer.
(a) Whether or not the person or general partnership to whom the estate is taxed as of December 31st prior to the tax sale is a resident of this state, the collector shall, in addition to the foregoing, notify the taxpayer of the time and place of sale first by first-class mail not less than ninety (90) days before the date of sale or any adjournment of the sale, and again by certified mail not less than forty (40) days before the date of sale or any adjournment of the sale, sent postpaid to the street address of the real estate liable for payment of taxes, and, if different, to the taxpayer’s address listed with the tax assessor’s office of the city or town where the real estate is located or to any other address which the taxpayer designates by written notice to the tax assessor, or to the address of the taxpayer stated on the deed recorded in the land evidence records of the city or town where the real estate is located or to the last-known address of the taxpayer or be left at the taxpayer’s last-known address or personally served on the taxpayer not less than thirty (30) days before the date of sale or any adjournment of the sale, but no notice of adjournments shall be necessary other than the announcement made at the sale. Copies of such notices shall be provided to Rhode Island Housing and Mortgage Finance Corporation by mail or hand delivery, or a manifest of such notices shall be electronically delivered in a machine-readable format through secure means established by the Rhode Island Housing and Mortgage Finance Corporation not less than forty (40) days before the date of sale or any adjournment of the sale. Failure to notify the Rhode Island Housing and Mortgage Finance Corporation as prescribed herein shall nullify any tax sale of any property with respect to which such notice was not given. Failure to notify the taxpayer as prescribed herein shall nullify any tax sale of any property with respect to which such notice was not given. The notice required to be provided to the taxpayer pursuant to the provisions of this subsection shall include a current copy of § 44-9-10, with a headline in at least twelve (12) point font at the top: “The city/town is required to provide proper notice to you, the taxpayer, before conducting a tax sale, as described below:” and include current contact information including email address, phone number, and physical mailing address for the Rhode Island mortgage finance corporation.
(b) Persons aged sixty-five (65) years and over or persons suffering from a disability may designate a third party to whom notice may be sent as required pursuant to this section by advising the tax assessor of the name and address of the person.
(c) If the estate taxed is a corporation, the notice may be sent either by registered or certified mail to its place of business or left at the business office of the corporation with some person employed there.
(d) In the event the person to whom the estate is taxed is listed in the records of the assessor and/or collector as having applied for and been granted a property tax abatement based wholly or partially on the age of the taxpayer, then the collector shall also notify the office of healthy aging by mail, hand delivery, or a manifest of such notices shall be electronically delivered in a machine- readable format through the secure means established by the Rhode Island Housing and Mortgage Finance Corporation pursuant to subsection (a), not less than forty (40) days before the date of sale. Failure to notify the office of healthy aging as prescribed herein shall nullify any tax sale of any property with respect to which such notice was not given.
(e) Within ninety (90) days after the end of each calendar year, the office of healthy aging shall prepare and submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the secretary of state. The report shall contain information concerning the number of notices received by the office of healthy aging pursuant to this section of law during the calendar year and information concerning the identity of the specific parcels that might be sold in each city or town as well as a description of exactly what action followed on each such notice. The report shall conclude by indicating the present status of each case in which the division received such a notice as well as an indication as to whether each such case is open or closed. LC003799 - Page 2 of 4
SECTION 2. This act shall take effect upon passage.