Advisory Opinion No. 98-160

Re: Robert Paliotta

QUESTION PRESENTED

The petitioner, a West Warwick Tax Assessment Board of Review member, a municipal appointed position, who is privately employed as a real estate broker, requests an advisory opinion as to whether a conflict of interest exists due to the fact a town employee has made an offer to purchase property for which he is the real estate agent.

RESPONSE

It is the opinion of the Rhode Island Ethics Commission that the no conflict of interest exists due to the fact that the petitioner, a West Warwick Tax Assessment Review Board member, a municipal appointed position, is the real estate agent for property that a town employee has made an offer to purchase.

The petitioner advises that a town employee has offered to purchase property for which he is the listing real estate agent. He also indicates that the town has expressed an interest in this property through the news media. Under the Code of Ethics, a public official may not participate in any matter in which he has an interest, financial or otherwise, which is in substantial conflict with the proper discharge of his duties in the public interest. See R.I. Gen. Laws §§ 36-14-5(a), 36-14-7(a). He also may not accept other employment which would impair his independence of judgment as to his public employment. See R.I. Gen. Laws § 36-14-5(b). Further, he may not use his public office or confidential information received through his office to obtain financial gain, other than that provided by law, for himself, a family member, or an employer. See R.I. Gen. Laws § 36-14-5(d).

The Tax Assessment Review Board hears and considers property owners’ appeals concerning the amount of taxes determined by the Tax Assessor. As a Board member, the petitioner does not determine or otherwise influence a property’s valuation for market purposes. Since he is not in a position to influence a property’s sale price, he cannot financially impact his commission as a real estate agent through his public position. Further, there is no reason to believe or expect that the property will come before him as a Board member. The Commission concludes that the petitioner’s private employment as a real estate agent neither creates an interest in substantial conflict with nor impairs his independence of judgment with regard to his public duties as a Tax Assessment Review Board member. The fact that the intended purchaser of the property is a town employee, or that the Town of West Warwick also may be interested in the property, does not otherwise present a conflict of interest under the Code.

(In A.O. 93-22, the Commission suggested that a conflict of interest might exist if a tax assessor acted as a real estate broker and appraiser within the same municipality. In this case, however, the matter involves a tax assessment board of review member, and therefore does not raise the same concerns addressed in A.O. 93-22.)

Code Citations:

36-14-5(a)

36-14-5(b)

36-14-5(d)

36-14-7(a)

Related Advisory Opinions:

96-61

95-77

93-22

93-11

Keywords:

Private employment