How to Recover Surplus Funds from Tax Sales in Rhode Island
When a property is sold at a tax sale in Rhode Island for more than the back taxes owed, the extra money does not just disappear. It is held for you, the former property owner. But many people never find out — and after five years, the money is gone for good.
What the Law Says
Under Rhode Island General Laws, Section 44-9-37, when a tax sale brings in more than the taxes, interest, charges, assessments, and sale expenses, the surplus is deposited with the city or town treasurer. You have five years to demand payment. If you do not, the money becomes the property of the city or town.
Who Holds the Money?
The surplus is held by the city or town treasurer in the municipality where your property was sold. The local tax collector also has records of the sale and can help you confirm the surplus amount.
Five Years — That Is Your Deadline
Rhode Island gives you a five-year window from the date of the tax sale to claim your surplus. That is more generous than many states, but it is still a hard deadline. After five years, the money legally belongs to the municipality.
How to Claim Your Surplus
- Contact the city or town treasurer where the property was sold. Ask about surplus funds from your tax sale.
- Also contact the local tax collector for sale records and surplus amounts.
- Make a written demand for payment. Include the property address, your name, and the sale date.
- Provide proof of identity and ownership — bring your ID, deed, or other documentation showing you owned the property.
- Keep copies of everything you submit.
What About Multiple Parcels?
If several properties were sold together for one lump sum, the surplus is divided among the former owners based on the original assessed values of each property. Your share is proportional to your property's value.
No Fee Caps at the Municipal Level
Rhode Island does not impose specific finder's fee caps while surplus funds are held at the city or town level. The only restriction (under Section 33-21.1-35) applies after funds have been transferred to the state's unclaimed property program — at that point, recovery agreements made within 24 months are unenforceable.
But remember: you can always claim your own surplus funds for free.
The Tyler v. Hennepin County Decision
In 2023, the U.S. Supreme Court issued a unanimous ruling in Tyler v. Hennepin County that governments cannot keep surplus proceeds from tax sales beyond what is owed, finding this violates the Takings Clause of the Fifth Amendment. This landmark decision has significantly strengthened property owners' rights to surplus funds across the country. As of 2026, laws in this area are evolving rapidly as states update their statutes to comply with this ruling. It is more important than ever to understand your rights and act promptly.
Get Free Help
AuctionBlock.org is a mission-driven company that helps former property owners recover surplus funds at no charge. We can help you find out if surplus funds exist, guide you through the claim process, and make sure you meet the five-year deadline.
Contact AuctionBlock.org today — your surplus funds are waiting, but they will not wait forever.
AuctionBlock.org is a mission-driven company providing surplus fund recovery assistance. This guide is for educational purposes only and does not constitute legal advice. Laws change frequently — always verify current statutes with a licensed attorney in your state. Last updated: April 2026.