Rhode Island 2026 Regular Session

Rhode Island Senate Bill S2713

Introduced

2/27/26

Refer

2/27/26

Caption

Establishes the Property Equity Protection Act to protect property owners from losing their equity when their property is seized to pay a debt to the government by allowing ample time to pay off the debt and adequate notice of due process.

Impact

The legislation modifies existing taxation laws, mandating that no tax lien or deed can be foreclosed unless the delinquent tax amount exceeds 5% of the property's fair market value or $50,000, whichever is lower. This provision ensures a more balanced approach to debt enforcement, preventing the government from rapidly selling properties without sufficient opportunity for owners to reclaim their equity. It further introduces structured requirements for notifications that must be made to property owners, enhancing transparency in the tax collection process.

Summary

S2713, known as the Property Equity Protection Act, aims to safeguard property owners from losing their equity during the seizure of property to satisfy government debt. The act ensures that property owners receive adequate notice and the opportunity to settle their debts before any foreclosure actions are initiated. It establishes a five-year redemption period during which property owners can pay their delinquent taxes before foreclosure can occur, providing crucial protections for property rights.

Contention

While supporters argue that this bill is essential for protecting property rights in the face of financial hardship, some critics may see it as an impediment to the government's ability to collect owed taxes effectively. The requirement for extensive notice periods and the limitation on foreclosure could also create concerns among local jurisdictions about potential losses in tax revenue and hinder timely enforcement against delinquent taxpayers. The balance between protecting individual property rights and ensuring efficient tax collection will likely be a focal point of debate among lawmakers.

Companion Bills

No companion bills found.

Previously Filed As

RI H6011

Removes state-owned property from property exempt from local property taxes.

RI H6123

Defines Class 5 property to include the commercial portion of mixed use properties and fix the tax rate for Class 3 property at thirty-eight dollars and 33 cents ($38.33) per one thousand dollars ($1,000).

RI S0675

RI S0141

Allows an owner or owners of real property to execute a deed that names one or more beneficiaries who will obtain title to the property at the owner's death without the necessity of probate.

RI S1043

Adds the property of the Pokanoket Management Group, Trustee of the Pokanoket Tribe Land Trust, to the list of property designated for appropriations in lieu of municipal property tax, would concurrently exempt such property from municipal property tax.

RI H6291

RI S0942

Makes certain technical amendments /clarifications to the statutes relating to the assessment of real property and the timing and process to appeals thereof.

RI H6043

Makes certain technical amendments /clarifications to the statutes relating to the assessment of real property and the timing and process to appeals thereof.

RI H5937

Adopts the uniform partition of heirs property act.

RI H5182

Provides that the cost of maintaining and repairing or restoring an easement or right-of-way shall be shared by each owner of a benefited property and their costs shall be determined by and commensurate with the municipal appraisal of each property.