§ 34-41-1.03 - Status and taxation of time-share estates.
SECTION 34-41-1.03
§ 34-41-1.03 Status and taxation oftime-share estates. – (a) Except as expressly modified by this chapter and notwithstanding anycontrary rule of common law, a grant of an estate in a unit conferring theright of possession during a potentially infinite number of separated timeperiods creates an estate in fee simple having the character and incidents ofsuch an estate at common law, and a grant of an estate in a unit conferring theright of possession during five (5) or more separated time periods over afinite number of years equal to five (5) or more, including renewal options,creates an estate for years having the character and incidents of such anestate at common law.
(b) Each time-share estate constitutes for all purposes aseparate estate in real property. Assessments shall be made on the realproperty value of the interval time-share estates, or on the real propertyvalue of the development.
(1) Notwithstanding anything herein, and/or notwithstandingany of the provisions of chapter 34-36 ("Condominium Ownership Act"), 34-36.1("Rhode Island Condominium Act"), or 34-41 ("Rhode Island Real EstateTime-Share Act") to the contrary the tax assessor may use any identifiable andcommonly accepted method of appraisal as a basis for arriving at valueconclusions for the interval time-share estate or the development, including,but not limited to, elements of replacement cost, income analysis, andcomparable sales of time-share interval estates, similarly configured hotels,and/or real estate developments, with appropriate deductions for personalproperty, intangible assets, and excess marketing costs, allowing forapplication of discounted cash flow methodology where appropriate.
(2) In making an assessment of the real property value of theinterval time-share estates or the development, tax assessor notices ofassessment and bills for taxes must be furnished to the managing entity, ifany, or otherwise to each time-share owner, but the managing entity is notliable for the taxes as a result thereof. In accordance herein, eachmunicipality is hereby authorized and empowered to exercise all rights andpowers for the collection of taxes as are conferred by virtue of title 44.
(3) This section shall apply to fee and non-fee time-sharereal property.
(c) A document transferring or encumbering a time-shareestate may not be rejected for recordation because of the nature or duration ofthat estate.