Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0705 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0705
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7	7	LC002278
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION
16	16	Introduced By: Senators Tikoian, Britto, Burke, DiPalma, McKenney, and Euer
17	17	Date Introduced: March 22, 2023
18	18	Referred To: Senate Finance
19	19	(Dept. of Revenue)
20	20
21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 44-3-2.2 of the General Laws in Chapter 44-3 entitled "Property 1
23	23	Subject to Taxation" is hereby amended to read as follows: 2
24	24	44-3-2.2. Tax on certain vehicles and trailers prohibited. 3
25	25	Notwithstanding any other provisions of the general laws to the contrary, no city or town 4
26	26	shall assess any tax under chapter 5 of title 44 on any vehicle or trailer, which is registered under 5
27	27	chapter 3 of title 31 and taxed under chapter 34 of title 44. Any vehicle or trailer, which is not 6
28	28	registered under chapter 3 of title 31, shall be assessed by a city or town in the same manner as 7
29	29	other tangible personal property. 8
30	30	SECTION 2. Section 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled "Motor 9
31	31	Vehicle and Trailer Excise Tax Elimination Act of 1998" is hereby amended to read as follows: 10
32	32	44-34.1-2. City, town and fire district reimbursement. 11
33	33	(a) In fiscal years 2000 2024 and thereafter, cities, towns, and fire districts shall receive 12
34	34	reimbursements, as set forth in this section, from state general revenues equal to the amount of lost 13
35	35	tax revenue due to the phase out or reduction of the excise tax. Cities, towns, and fire districts shall 14
36	36	receive advance reimbursements through state fiscal year 2002. In the event When the tax is phased 15
37	37	out, cities, towns, and fire districts shall receive a permanent distribution of sales tax revenue 16
38	38	pursuant to § 44-18-18 in an amount equal to any lost revenue resulting from the excise tax 17
39	39	elimination. Lost revenues must be determined using a base tax rate fixed at fiscal year 1998 levels 18
40	40	for each city, town, and fire district, except that the town of Johnston’s base tax rate must be fixed 19
41	41
42	42
43	43	LC002278 - Page 2 of 22
44	44	at a fiscal year 1999 level. Provided, however, for fiscal year 2011 and thereafter, the base tax rate 1
45	45	may be less than but not more than the rates described in this subsection (a). 2
46	46	(b)(1) The director of administration shall determine the amount of general revenues to be 3
47	47	distributed to each city, town, and fire district for the fiscal years 1999 and thereafter so that every 4
48	48	city, town, and fire district is held harmless from tax loss resulting from this chapter, assuming that 5
49	49	tax rates are indexed to inflation through fiscal year 2003. 6
50	50	(2) The director of administration shall index the tax rates for inflation by applying the 7
51	51	annual change in the December Consumer Price Index — All Urban Consumers (CPI-U), published 8
52	52	by the Bureau of Labor Statistics of the United States Department of Labor, to the indexed tax rate 9
53	53	used for the prior fiscal year calculation; provided, that for state reimbursements in fiscal years 10
54	54	2004 and thereafter, the indexed tax rate shall not be subject to further CPI-U adjustments. The 11
55	55	director shall apply the following principles in determining reimbursements: 12
56	56	(i) Exemptions granted by cities, towns, and fire districts in the fiscal year 1998 must be 13
57	57	applied to assessed values prior to applying the exemptions in § 44-34.1-1(c)(1). Cities, towns, and 14
58	58	fire districts will not be reimbursed for these exemptions. 15
59	59	(ii) City, town, and fire districts shall be reimbursed by the state for revenue losses 16
60	60	attributable to the exemptions provided for in § 44-34.1-1 and the inflation indexing of tax rates 17
61	61	through fiscal 2003. Reimbursement for revenue losses shall be calculated based upon the 18
62	62	difference between the maximum taxable value less personal exemptions and the net assessed 19
63	63	value. 20
64	64	(iii) Inflation reimbursements shall be the difference between: 21
65	65	(A) The levy calculated at the tax rate used by each city, town, and fire district for fiscal 22
66	66	year 1998 after adjustments for personal exemptions but prior to adjustments for exemptions 23
67	67	contained in § 44-34.1-1(c)(1); provided, that for the town of Johnston, the tax rate used for fiscal 24
68	68	year 1999 must be used for the calculation; and 25
69	69	(B) The levy calculated by applying the appropriate cumulative inflation adjustment 26
70	70	through state fiscal 2003 to the tax rate used by each city, town, and fire district for fiscal year 27
71	71	1998; provided, that for the town of Johnston the tax rate used for fiscal year 1999 shall be used 28
72	72	for the calculation after adjustments for personal exemptions but prior to adjustments for 29
73	73	exemptions contained in § 44-34.1-1. 30
74	74	(3) For fiscal year 2018 and thereafter, each city, town, and fire district shall tax motor 31
75	75	vehicles and trailers pursuant to chapter 34 of title 44 using the same motor vehicle and trailer 32
76	76	excise tax calculation methodology that was employed for fiscal year 2017, where motor vehicle 33
77	77	and trailer excise tax calculation methodology refers to the application of specific tax practices and 34
78	78
79	79
80	80	LC002278 - Page 3 of 22
81	81	the order of operations in the determination of the tax levied on any given motor vehicle and/or 1
82	82	trailer. 2
83	83	(4) Each city, town, and fire district shall report to the department of revenue, as part of the 3
84	84	submission of the certified tax levy pursuant to § 44-5-22, the motor vehicle and trailer excise tax 4
85	85	calculation methodology that was employed for fiscal year 2017. For fiscal year 2018 and 5
86	86	thereafter, the department of revenue is authorized to confirm that each city, town, or fire district 6
87	87	has used the same motor vehicle and trailer excise tax methodology as was used in fiscal year 2017 7
88	88	and the department of revenue shall have the final determination as to whether each city, town, or 8
89	89	fire district has in fact complied with this requirement. Should the department of revenue determine 9
90	90	that a city, town, or fire district has failed to cooperate or comply with the requirement in this 10
91	91	section, the city, town, or fire district’s reimbursement for the items noted in subsections (c)(13)(i) 11
92	92	through (c)(13)(iv) of this section shall be withheld until such time as the department of revenue 12
93	93	deems the city, town, or fire district to be in compliance. 13
94	94	(5) For purposes of reimbursement for the items noted in subsections (c)(13)(i) through 14
95	95	(c)(13)(iv) of this section, the FY 2018 baseline from which the reimbursement amount shall be 15
96	96	calculated is defined as the motor vehicle and trailer excise tax levy that would be generated by 16
97	97	applying the fiscal year 2017 motor vehicle and trailer excise tax calculation methodology to the 17
98	98	assessed value of motor vehicles and trailers as of fiscal year 2018. The amount of reimbursement 18
99	99	that each city, town, or fire district receives shall be the difference between the FY 2018 baseline 19
100	100	and the certified motor vehicle and trailer excise tax levy as submitted by each city, town, and fire 20
101	101	district as confirmed by the department of revenue. The department of revenue shall determine the 21
102	102	reimbursement amount for each city, town, and fire district. 22
103	103	(6) For fiscal year 2020 and thereafter, the department of revenue shall assess the feasibility 23
104	104	of standardizing the motor vehicle and trailer excise tax calculation methodology across all cities, 24
105	105	towns, and fire departments. Based on this assessment, the department of revenue may make 25
106	106	recommendations for changes to the motor vehicle and trailer excise tax calculation methodology. 26
107	107	Beginning on January 1, 2021, the director of the department of revenue shall file an annual 27
108	108	report for the consideration of the general assembly with the president of the senate, speaker of the 28
109	109	house, chairperson of the senate committee on finance and chairperson of the house committee on 29
110	110	finance, containing recommendations and findings as to the feasibility of the motor vehicle excise 30
111	111	tax phase-out in each year until the phase-out is complete. 31
112	112	(b)(l) In fiscal year 2024, cities, towns, and fire districts shall receive the 32
113	113	following reimbursement amounts: 33
114	114	Barrington $5,894,822 34
115	115
116	116
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118	118	Bristol $2,905,818 1
119	119	Burrillville $5,053,933 2
120	120	Central Falls $2,077,974 3
121	121	Charlestown $1,020,877 4
122	122	Coventry $5,872,396 5
123	123	Cranston $22,312,247 6
124	124	Cumberland $6,073,469 7
125	125	East Greenwich $2,417,332 8
126	126	East Providence $11,433,479 9
127	127	Exeter $2,241,381 10
128	128	Foster $1,652,251 11
129	129	Glocester $2,381,941 12
130	130	Hopkinton $1,629,259 13
131	131	Jamestown $622,793 14
132	132	Johnston $10,382,785 15
133	133	Lincoln $5,683,015 16
134	134	Little Compton $366,775 17
135	135	Middletown $1,976,448 18
136	136	Narragansett $1,831,251 19
137	137	Newport $2,223,671 20
138	138	New Shoreham $163,298 21
139	139	North Kingstown $5,378,818 22
140	140	North Providence $9,619,286 23
141	141	North Smithfield $4,398,531 24
142	142	Pawtucket $16,495,506 25
143	143	Portsmouth $2,414,242 26
144	144	Providence $34,131,596 27
145	145	Richmond $1,448,455 28
146	146	Scituate $1,977,127 29
147	147	Smithfield $7,098,694 30
148	148	South Kingstown $3,930,455 31
149	149	Tiverton $1,748,175 32
150	150	Warren $2,090,911 33
151	151	Warwick $25,246,254 34
152	152
153	153
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155	155	Westerly $5,765,523 1
156	156	West Greenwich $1,331,725 2
157	157	West Warwick $5,673,744 3
158	158	Woonsocket $9,324,776 4
159	159	Lime Rock Fire District $133,933 5
160	160	Lincoln Fire District $208,994 6
161	161	Manville Fire District $64,862 7
162	162	Quinnville Fire District $13,483 8
163	163	(c)(1) Funds (2) In fiscal year 2024, funds shall be distributed to the cities, towns, and fire 9
164	164	districts as follows: 10
165	165	(i) On October 20, 1998, and each October 20 thereafter through October 20, 2001, twenty-11
166	166	five percent (25%) of the amount calculated by the director of administration to be the difference 12
167	167	for the upcoming fiscal year. 13
168	168	(ii) On February 20, 1999, and each February 20 thereafter through February 20, 2002, 14
169	169	twenty-five percent (25%) of the amount calculated by the director of administration to be the 15
170	170	difference for the upcoming fiscal year. 16
171	171	(iii) On June 20, 1999, and each June 20 thereafter through June 20, 2002, fifty percent 17
172	172	(50%) of the amount calculated by the director of administration to be the difference for the 18
173	173	upcoming fiscal year. 19
174	174	(iv)(i) On August 1, 2002, and each August 1 thereafter August 1, 2023, twenty-five 20
175	175	percent (25%) of the amount calculated by the director of administration to be the difference for 21
176	176	the current fiscal year funds. 22
177	177	(v)(ii) On November 1, 2002, and each November 1 thereafter November 1, 2023, twenty-23
178	178	five percent (25%) of the amount calculated by the director of administration to be the difference 24
179	179	for the current fiscal year funds. 25
180	180	(vi)(iii) On February 1, 2003, and each February 1 thereafter February 1, 2024, twenty-five 26
181	181	percent (25%) of the amount calculated by the director of administration to be the difference for 27
182	182	the current fiscal year funds. 28
183	183	(vii)(iv) On May 1, 2003, and each May 1 thereafter, except May 1, 2010 May 1, 2024, 29
184	184	twenty-five percent (25%) of the amount calculated by the director of administration to be the 30
185	185	difference for the current fiscal year funds. 31
186	186	The funds shall be distributed to each city, town, and fire district in the same proportion as 32
187	187	distributed in fiscal year 2023. 33
188	188	(viii) On June 15, 2010, twenty-five percent (25%) of the amount calculated by the director 34
189	189
190	190
191	191	LC002278 - Page 6 of 22
192	192	of administration to be the difference for the current fiscal year. 1
193	193	Provided, however, the February and May payments, and June payment in 2010, shall be 2
194	194	subject to submission of final certified and reconciled motor vehicle levy information. 3
195	195	(2) Each city, town, or fire district shall submit final certified and reconciled motor vehicle 4
196	196	levy information by August 30 of each year. Any adjustment to the estimated amounts paid in the 5
197	197	previous fiscal year shall be included or deducted from the payment due November 1. 6
198	198	(3) For the city of East Providence, the payment schedule is twenty-five percent (25%) on 7
199	199	November 1, 2023, twenty-five percent (25%) on February 1, 2024, twenty-five percent (25%) on 8
200	200	May 1, 2024, and twenty-five percent (25%) on August 1, 2024. 9
201	201	(3)(4) On any of the payment dates specified in paragraphs (1)(i) through (vii) (2)(i) 10
202	202	through (2)(iv) or (3) of this subsection, the director of revenue is authorized to deduct previously 11
203	203	made over-payments or add supplemental payments as may be required to bring the 12
204	204	reimbursements into full compliance with the requirements of this chapter. 13
205	205	(4) For the city of East Providence, the payment schedule is twenty-five percent (25%) on 14
206	206	February 20, 1999, and each February 20 thereafter through February 20, 2002, twenty-five percent 15
207	207	(25%) on June 20, 1999, and each June 20 thereafter through June 20, 2002, which includes final 16
208	208	reconciliation of the previous year’s payment, and fifty percent (50%) on October 20, 1999, and 17
209	209	each October 20 thereafter through October 20, 2002. For local fiscal years 2003 and thereafter, 18
210	210	the payment schedule is twenty-five percent (25%) on each November 1, twenty-five percent (25%) 19
211	211	on each February 1, twenty-five percent (25%) on each May 1, which includes final reconciliation 20
212	212	of the previous year’s payment, and twenty-five percent (25%) on each August 1; provided, the 21
213	213	May and August payments shall be subject to submission of final certified and reconciled motor 22
214	214	vehicle levy information. 23
215	215	(5) When the tax is phased out, funds distributed to the cities, towns, and fire districts for 24
216	216	the following fiscal year shall be calculated as the funds distributed in the fiscal year of the phase-25
217	217	out. Twenty-five percent (25%) of the amounts calculated shall be distributed to the cities, towns, 26
218	218	and fire districts on August 1, in the fiscal year of the phase-out, twenty-five percent (25%) on the 27
219	219	following November 1, twenty-five percent (25%) on the following February 1, and twenty-five 28
220	220	percent (25%) on the following May 1. The funds shall be distributed to each city, town, and fire 29
221	221	district in the same proportion as distributed in the fiscal year of the phase-out. 30
222	222	(6)(c) When the tax is phased out to August 1, of the following fiscal year the director of 31
223	223	revenue shall calculate to the nearest thousandth of one cent ($0.00001) the number of cents of 32
224	224	sales tax received for the fiscal year ending June 30, of the year following the phase-out equal to 33
225	225	the amount of funds distributed to the cities, towns, and fire districts under this chapter during the 34
226	226
227	227
228	228	LC002278 - Page 7 of 22
229	229	fiscal year following the phase-out and the percent of the total funds distributed in the fiscal year 1
230	230	following the phase-out received by each city, town, and fire district, calculated to the nearest one-2
231	231	hundredth of one percent (0.01%). The director of the department of revenue shall transmit those 3
232	232	calculations to the governor, the speaker of the house, the president of the senate, the chairperson 4
233	233	of the house finance committee, the chairperson of the senate finance committee, the house fiscal 5
234	234	advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for 6
235	235	the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to 7
236	236	the cities, towns, and fire districts under this chapter for the second fiscal year following the phase-8
237	237	out and each year thereafter. The cities, towns, and fire districts shall receive that amount of sales 9
238	238	tax in the proportions calculated by the director of revenue as that received in the fiscal year 10
239	239	following the phase-out. 11
240	240	(7)(d) When the tax is phased out, In fiscal years 2025 and thereafter, twenty-five percent 12
241	241	(25%) of the funds shall be distributed to the cities, towns, and fire districts on August 1 of the 13
242	242	following fiscal year, August 1, 2024 and every August 1 thereafter; twenty-five percent (25%) 14
243	243	shall be distributed on the following November 1, November 1, 2024, and every November 1 15
244	244	thereafter; twenty-five percent (25%) shall be distributed on the following February 1, February 1, 16
245	245	2025, and every February 1 thereafter; and twenty-five percent (25%) shall be distributed on the 17
246	246	following May 1, May 1, 2025, and every May 1 thereafter. 18
247	247	(8)(e) For the city of East Providence, in the event the tax is phased out fiscal years 2025 19
248	248	and thereafter, twenty-five percent (25%) shall be distributed on November 1 of the following fiscal 20
249	249	year November 1, 2024, and every November 1 thereafter, twenty-five percent (25%) shall be 21
250	250	distributed on the following February 1, February 1, 2025, and every February 1 thereafter; twenty-22
251	251	five percent (25%) shall be distributed on the following May 1, May 1, 2025 and every May 1 23
252	252	thereafter; and twenty-five percent (25%) of the funds shall be distributed on the following August 24
253	253	1, August 1, 2025 and every August 1 thereafter. 25
254	254	(9) As provided for in § 44-34-6, the authority of fire districts to tax motor vehicles is 26
255	255	eliminated effective with the year 2000 tax roll and the state reimbursement for fire districts shall 27
256	256	be based on the provisions of § 44-34-6. All references to fire districts in this chapter do not apply 28
257	257	to the year 2001 tax roll and thereafter. 29
258	258	(10) For reimbursements payable in the year ending June 30, 2008, and thereafter, the 30
259	259	director of administration shall discount the calculated value of the exemption to ninety-eight 31
260	260	percent (98%) in order to establish a collection rate that is comparable to the collection rate 32
261	261	achieved by municipalities in the levy of the motor vehicle excise tax. 33
262	262	(11) For reimbursements payable in the year ending June 30, 2010, the director of 34
263	263
264	264
265	265	LC002278 - Page 8 of 22
266	266	administration shall reimburse cities and towns eighty-eight percent (88%) of the reimbursements 1
267	267	payable pursuant to subsection (c)(10) above. 2
268	268	(12) For fiscal year 2011 through to June 30, 2017, the state shall reimburse cities and 3
269	269	towns, for the exemption pursuant to subsection (c)(10) above, ratably reduced to the appropriation. 4
270	270	(13) For fiscal year 2018 and thereafter, each city, town, and fire district shall receive a 5
271	271	reimbursement equal to the amount received in fiscal year 2017 plus an amount equal to the 6
272	272	reduction from the FY 2018 baseline, as defined in subsection (b)(5) of this section, resulting from 7
273	273	changes in: 8
274	274	(i) The assessment percentage set forth in § 44-34-11(c)(1)(iii); 9
275	275	(ii) The excise tax rate set forth in § 44-34.1-1(c)(5); 10
276	276	(iii) Exemptions set forth in § 44-34.1-1(c)(1); and 11
277	277	(iv) Exemptions for vehicles more than fifteen (15) years old as set forth in § 44-34-2. 12
278	278	(14) In the event any city, town, or fire district sent out or sends out tax bills for fiscal year 13
279	279	2018, which do not conform with the requirements of this act, the city, town, or fire district shall 14
280	280	ensure that the tax bills for fiscal year 2018 are adjusted or an abatement is issued to conform to 15
281	281	the requirements of this act. 16
282	282	SECTION 3. Chapter 44-34 of the General Laws entitled "Excise on Motor Vehicles and 17
283	283	Trailers" is hereby repealed in its entirety. 18
284	284	CHAPTER 44-34 19
285	285	Excise on Motor Vehicles and Trailers 20
286	286	44-34-1. Motor vehicle and trailer excise tax. 21
287	287	There is created an excise tax on motor vehicles for the state of Rhode Island. The cities 22
288	288	and towns are authorized to administer and collect the excise on registered motor vehicles and 23
289	289	trailers in lieu of property tax. 24
290	290	44-34-2. Assessment — Valuation — Proration — Abatement and cancellation — 25
291	291	Exemptions from tax. 26
292	292	(a) Except as provided in this section, the tax assessors of each city and town shall assess 27
293	293	and levy in each calendar year on every vehicle and trailer registered under chapter 3 of title 31, 28
294	294	for the privilege of the registration, an excise measured by its value, as subsequently defined and 29
295	295	determined. For the purpose of this excise, the uniform value of each vehicle shall be determined 30
296	296	in accordance with the regulations of the vehicle value commission. Any vehicle that is more than 31
297	297	fifteen (15) years old, whether or not the vehicle is an antique motor car as defined in § 31-1-3(a), 32
298	298	shall be deemed to possess an average retail value of five hundred dollars ($500). The assessor may 33
299	299	waive the excise tax on any vehicle where the annual levy would be less than five dollars ($5.00). 34
300	300
301	301
302	302	LC002278 - Page 9 of 22
303	303	The state shall not provide reimbursement for any waiver. 1
304	304	(b) Vehicle and trailer excises shall be prorated over the calendar year prior to the year in 2
305	305	which the excises are levied and billed, that year being referred to as the calendar year of proration. 3
306	306	(c) The excise levy on every vehicle and trailer registered under chapter 3 of title 31 shall 4
307	307	be based on the ratio that the number of days the vehicle or trailer is registered is to the number of 5
308	308	days in the calendar year of proration. 6
309	309	(d) If during the calendar year of proration, the owner of a vehicle or trailer subject to the 7
310	310	excise moves permanently with his or her vehicle to another state and cancels his or her registration 8
311	311	in this state and returns the registration plates, the vehicle shall be exempt from excise for the 9
312	312	ensuing year. 10
313	313	(e) “Year of manufacture” as used in this section means the year used by the manufacturer 11
314	314	of the vehicle or trailer in connection with the designation by the manufacturer of the model of the 12
315	315	vehicle or trailer. Where the presumptive price of a vehicle or trailer is not readily obtainable, or 13
316	316	special equipment is installed on the vehicle or trailer, the tax assessor shall prescribe the retail 14
317	317	price to be used or the manner in which the retail price shall be determined. In making the 15
318	318	determination of the presumptive price, the tax assessor shall determine the retail price of the 16
319	319	vehicle and then apply the percentage corresponding with the appropriate fiscal year as specified 17
320	320	in § 44-34-11(c)(1)(iii). 18
321	321	(f) Nothing in this section shall be construed to prevent any city or town council from 19
322	322	granting an abatement, in whole or in part, when there is an error in the assessment of a tax, and 20
323	323	the tax assessors have certified to the fact, in writing, to the city or town council to cancel taxes 21
324	324	stating the nature of the error, the valuation of the vehicle or trailer, the amount of the assessed tax, 22
325	325	and the name of the person to whom the vehicle or trailer was taxed. 23
326	326	(g) The city or town council may cancel, in whole or in part, an excise tax assessed to a 24
327	327	person who has died leaving no estate, or a person who has moved from the state, and the tax 25
328	328	collector or person acting in the capacity of tax collector certifies to the city or town council the 26
329	329	facts of the case. 27
330	330	(h) The excise imposed by this section shall not apply to vehicles or trailers owned by the 28
331	331	state of Rhode Island or any of its political subdivisions, or to vehicles or trailers owned by a 29
332	332	corporation, association, or other organization whose tangible personal property is exempt under 30
333	333	§§ 44-3-3(a)(1) — (a)(15), or to vehicles assessed and taxed under § 44-13-13, or those owned by 31
334	334	the United States government. Farm vehicles shall be exempt to the extent prescribed in § 44-5-42. 32
335	335	44-34-3. Assessment roll — Rate — Payment — Penalty upon non-payment. 33
336	336	(a) The assessor, on the basis of a list of uniform values for motor vehicles prepared by the 34
337	337
338	338
339	339	LC002278 - Page 10 of 22
340	340	Rhode Island vehicle value commission pursuant to § 44-34-8, shall make a list containing the 1
341	341	value of every vehicle and trailer in the city or town which is subject to the provisions of § 44-34-2
342	342	2, the values to be at the average retail price as determined under § 44-34-2 or at a uniform 3
343	343	percentage of these, not to exceed one hundred percent (100%), to be determined by the assessors 4
344	344	in each city or town; provided, that every vehicle and trailer in the city of Pawtucket shall be 5
345	345	assessed in accordance with §§ 44-5-20.1 and 44-5-20.2; provided, further, that motor vehicles 6
346	346	owned, leased, or utilized by rental companies, as those terms are defined in § 31-34.1-1, shall not 7
347	347	be valued for excise tax purposes at an amount greater than the National Automobile Dealers 8
348	348	Association average retail value for new vehicles for the year and vehicle model in question. 9
349	349	(b) The excise tax levy shall be applied to the excise assessment roll at the rate established 10
350	350	by the assessors for all other property except manufacturer’s machinery and equipment in 11
351	351	accordance with § 44-5-22 and the resulting tax roll shall be certified by the assessors to the city or 12
352	352	town clerk, treasurer, or tax collector, as the case may be, not later than June 15 next succeeding. 13
353	353	Prior to the resulting tax roll being certified to the Pawtucket city clerk, the excise levy shall be 14
354	354	applied to the excise assessment roll in accordance with the property tax classification described in 15
355	355	§§ 44-5-20.3 and 44-5-20.5. In the city of Woonsocket, the excise tax levy shall be applied to the 16
356	356	excise assessment roll at a rate that will produce no more than nineteen percent (19%) of the total 17
357	357	tax levy as prescribed in § 44-5-11.6. In the town of Lincoln, the excise tax levy shall be applied to 18
358	358	the excise assessment roll at a rate that produces an amount equal to no more than seventeen percent 19
359	359	(17%) of the total real estate tax levy. 20
360	360	(c) If any vehicle or trailer liable to taxation in any city or town has been omitted from the 21
361	361	tax roll, the tax assessment shall assess the vehicle or trailer on a supplemental excise assessment 22
362	362	roll and shall certify the assessment to the tax collector after June 15, but not later than December 23
363	363	31 next succeeding. 24
364	364	(d) As soon after this as possible, the tax collector shall cause excise bills to be sent by first 25
365	365	class mail to all persons, corporations, partnerships, joint stock companies, or associations that have 26
366	366	registered vehicles or trailers during the calendar year of proration. The bills shall be paid in 27
367	367	accordance with § 44-5-7 at the same time and on the same schedule as property tax bills. Failure 28
368	368	to pay the excise at the appropriated time shall bring about a penalty of eighteen percent (18%) per 29
369	369	annum, or, in the case of the city of Cranston, a penalty of twelve percent (12%) per annum which 30
370	370	applies on the date of the delinquency or, for any city or town fiscal year commencing between 31
371	371	January 1, 1980, and December 31, 1980, after approval by the proper local authority, at the same 32
372	372	rate of interest as that which is applied to delinquent property taxes in the taxing jurisdiction. 33
373	373	(e) Failure by the tax collector to send, or by the taxpayer to receive, a bill shall not excuse 34
374	374
375	375
376	376	LC002278 - Page 11 of 22
377	377	the nonpayment of the tax or affect its validity or any proceedings for the collection. 1
378	378	(f) This section does not apply to any and all entities which are exempt from the excise as 2
379	379	prescribed in § 44-34-2. 3
380	380	44-34-4. Vehicle and trailer tax situs — Apportionment for interstate fleets. 4
381	381	(a) Tax situs of each vehicle or trailer shall be in the town or city of permanent abode of 5
382	382	the owner at the end of the calendar year of proration if an individual, or at the principal place of 6
383	383	business in this state, if a partnership, corporation, joint stock company, or association, except that 7
384	384	if a vehicle or trailer is customarily kept in some other town or city, then tax situs will be in that 8
385	385	municipality. 9
386	386	(b) Rented or leased vehicles shall have tax situs in the town or city where they are 10
387	387	customarily kept by the renter or lessee if the rental or leasing contracts shall be long term. For the 11
388	388	purpose of this chapter, long-term contracts are for six (6) months or more. If vehicles are rented 12
389	389	or leased for less than six (6) months or on a transient basis, then tax situs for the vehicles shall be 13
390	390	the town or city where the leasing company or agency stores the vehicles when they are not being 14
391	391	rented or leased. 15
392	392	(c) In the case of fleets of vehicles and trailers engaged in interstate commerce the 16
393	393	following rules of just apportionment shall apply: 17
394	394	(1) If the fleet owner has a terminal where a number of its vehicles are parked, then the 18
395	395	average number of vehicles so parked in proportion to its total fleet value shall determine the excise; 19
396	396	(2) If the fleet owner does not have vehicles parked in this state but has a pickup and drop-20
397	397	off station, then the number of miles traveled by its fleet in this state in proportion to the total 21
398	398	number of miles traveled by its fleet shall be the percentage of the total value of its fleet used to 22
399	399	determine the excise. 23
400	400	(d) Tax situs for a fleet shall be the town or city where the terminal or station is located. 24
401	401	(e) In the case of more than one pickup and drop-off station of a fleet owner located in the 25
402	402	state, the communities in which the stations are situated shall share equally the excise levied against 26
403	403	the fleet owner. 27
404	404	(f) The tax assessor may require an owner to disclose any or all information necessary to 28
405	405	determine tax situs and value of the vehicles and trailers that are subject to excise. 29
406	406	(g) If the owner fails to supply the requested information, then the tax assessor shall assess 30
407	407	the vehicles and trailers at what he or she deems to be their value, and the owner, if overtaxed, shall 31
408	408	have no remedy for this assessment. 32
409	409	44-34-4.1. Exemptions for buses, trucks and trailers in interstate commerce. 33
410	410	(a) Notwithstanding any provision of the general laws to the contrary, the operation of a 34
411	411
412	412
413	413	LC002278 - Page 12 of 22
414	414	truck, or trailer by a trucking company in interstate commerce shall not be subject to the provisions 1
415	415	of the excise tax imposed by this chapter, on the condition that the truck and/or trailer is utilized 2
416	416	exclusively in interstate commerce. 3
417	417	(b) Notwithstanding any provision of the law or regulation to the contrary, the operation of 4
418	418	a bus by a bus company in interstate commerce shall not be subject to the provisions of the excise 5
419	419	tax imposed by this chapter, on the condition that the bus is used eighty percent (80%) or more of 6
420	420	the time in interstate commerce and provided that the bus company shall provide a properly 7
421	421	executed affidavit attesting to the fact that the bus is used no less than eighty percent (80%) of the 8
422	422	time in interstate commerce. 9
423	423	44-34-5. Veterans’ and other property tax exemptions. 10
424	424	(a) Those veterans, gold star parents, and blind persons who qualify for property tax 11
425	425	exemption under §§ 30-22-1 — 30-22-4 and §§ 44-3-4, 44-3-5, and 44-3-12 shall have the 12
426	426	exemption applied to their real estate and tangible personal property, other than registered vehicles 13
427	427	or trailers, in the communities where they reside as prescribed in those sections. However, if there 14
428	428	is not sufficient property to exhaust the exemption, the balance of the exemption shall be applied 15
429	429	to the excise tax on his or her motor vehicle or trailer. 16
430	430	(b) The amount of exemption shall not exceed the amount of excise levied on those vehicles 17
431	431	owned by the person. 18
432	432	44-34-6. Fire districts. 19
433	433	The provisions of this chapter shall apply in all respects in the case of taxes assessed upon 20
434	434	motor vehicles by any fire district. Effective with the year 2000 tax roll based upon values of 21
435	435	December 31, 1999, the authority of fire districts as authorized by general or public law to levy 22
436	436	excise taxes on motor vehicles is eliminated and each district shall be reimbursed for one hundred 23
437	437	percent (100%) of current year lost revenues through fiscal year 2010 based upon what the levy net 24
438	438	of personal exemptions would otherwise have been. That reimbursement shall be based upon 25
439	439	submission of information to the department of revenue on the dates specified in § 44-34.1-2, and 26
440	440	reimbursements shall be paid on the dates specified in that section. Future year reimbursements 27
441	441	through fiscal year 2010 shall be based upon the year 2000 tax roll and values of December 31, 28
442	442	1999, and indexed by applying the annual change in the December Consumer Price Index — All 29
443	443	Urban Consumers (CPI-U). For fiscal year 2011 and thereafter the state shall not reimburse fire 30
444	444	districts pursuant to this chapter. Provided, for fiscal year 2011, and thereafter, the authority of fire 31
445	445	districts to levy excise taxes shall be deemed restored. The year 2010 tax roll shall be based upon 32
446	446	values of December 31, 2009, with corresponding adjustments made for each subsequent year 33
447	447	based on the valuation of vehicles as of December 31 of the year preceding the tax year. 34
448	448
449	449
450	450	LC002278 - Page 13 of 22
451	451	44-34-7. Severability. 1
452	452	If any provision of this chapter is held invalid, the remainder of this chapter and the 2
453	453	application of its provisions shall not be affected by this invalidity. 3
454	454	44-34-8. Appeal procedure. 4
455	455	(a)(1) Any taxpayer aggrieved by a valuation may appeal that valuation to the tax assessor 5
456	456	within forty-five (45) days of notice of valuation. When the valuation of the vehicle has been made 6
457	457	by the assessor, the assessor shall render a decision within ten (10) days of the filing of the appeal. 7
458	458	When the valuation of the vehicle has been made by the Rhode Island vehicle valuation 8
459	459	commission, the assessor shall forward the appeal on the form provided by the commission to the 9
460	460	Rhode Island vehicle valuation commission within ten (10) days. The commission shall transmit 10
461	461	its decision to the tax assessor within twenty (20) days of the receipt of the appeal. 11
462	462	(2) The tax assessor shall notify the aggrieved taxpayer, in writing, of the commission 12
463	463	decision within ten (10) days of the receipt of the commission decision. 13
464	464	(b) Within thirty (30) days of the notification of the decision of the tax assessor or the 14
465	465	commission, an aggrieved taxpayer may appeal the decision to the district court for the judicial 15
466	466	division within which the city or town is located. 16
467	467	(c) A party aggrieved by a final order of the district court may seek review of this order in 17
468	468	the state supreme court by writ of certiorari. The petition for a writ of certiorari shall state the errors 18
469	469	claimed. Upon the filing of the petition with the clerk of the supreme court, the supreme court may, 19
470	470	if it sees fit, issue its writ of certiorari to the district court to certify to the supreme court the record 20
471	471	of the proceeding under review, or so much of this as was submitted to the district court by the 21
472	472	parties, together with any additional record of the proceedings in the district court. 22
473	473	44-34-9. Valuation of motor vehicles. 23
474	474	For the purpose of the imposition of an excise tax upon motor vehicles, the tax assessor 24
475	475	shall determine the value of each motor vehicle in accordance with the following procedures: 25
476	476	(1) Each vehicle and trailer of the same make, type, model, and year of manufacture in this 26
477	477	state shall be deemed to have one uniform statewide value to be utilized in each city and town, 27
478	478	except in those instances where no uniform value is established pursuant to the rules of the vehicle 28
479	479	value commission § 44-34-11 or where a value is established by the assessor pursuant to § 44-34-29
480	480	2. 30
481	481	(2) The uniform value of each type of vehicle and trailer shall be determined by the Rhode 31
482	482	Island vehicle value commission or in accordance with the rules of the vehicle value commission. 32
483	483	(3) The value of each vehicle or trailer or each type vehicle or trailer not established by the 33
484	484	Rhode Island vehicle value commission shall be determined by the assessor of the city or town in 34
485	485
486	486
487	487	LC002278 - Page 14 of 22
488	488	which the vehicle or trailer is registered. In making the determination, a uniform flat value for the 1
489	489	vehicles in the municipality may be utilized by the assessor. 2
490	490	44-34-10 — 44-34-10.2. Repealed. 3
491	491	44-34-11. Rhode Island vehicle value commission. 4
492	492	(a) There is hereby authorized, created, and established the “Rhode Island vehicle value 5
493	493	commission” whose function it is to establish presumptive values of vehicles and trailers subject to 6
494	494	the excise tax. 7
495	495	(b) The commission shall consist of the following seven (7) members as follows: 8
496	496	(1) The director of the department of revenue or his/her designee from the department of 9
497	497	revenue; 10
498	498	(2) Five (5) local tax officials named by the governor, at least one of whom shall be from 11
499	499	a city or town under ten thousand (10,000) population and at least one of whom is from a city or 12
500	500	town over fifty thousand (50,000) population. In making these appointments, the governor shall 13
501	501	give due consideration to the recommendations submitted by the President of the Rhode Island 14
502	502	League of Cities and Towns and each appointment shall be subject to the advice and consent of the 15
503	503	senate; and 16
504	504	(3) One motor vehicle dealer appointed by the governor upon giving due consideration to 17
505	505	the recommendation of the director of revenue and subject to the advice and consent of the senate. 18
506	506	(4) All members shall serve for a term of three (3) years. 19
507	507	(5) Current legislative appointees shall cease to be members of the commission upon the 20
508	508	effective date of this act. Non-legislative appointees to the commission may serve out their terms 21
509	509	whereupon their successors shall be appointed in accordance with this act. No one shall be eligible 22
510	510	for appointment to the commission unless he or she is a resident of this state. 23
511	511	(6) Public members of the commission shall be removable by the governor pursuant to § 24
512	512	36-1-7 for cause only, and removal solely for partisan or personal reasons unrelated to capacity or 25
513	513	fitness for the office shall be unlawful. 26
514	514	(7) The governor shall appoint a chairperson from the commission’s members. The 27
515	515	commission shall elect from among its members other officers as it may deem appropriate. 28
516	516	(c) The commission shall annually determine the presumptive values of vehicles and 29
517	517	trailers subject to the excise tax in the following manner: 30
518	518	(1) Not earlier than September 30 and not later than December 31 of each year, the 31
519	519	commission shall by rule adopt a methodology for determining the presumptive value of vehicles 32
520	520	and trailers subject to the excise tax that shall give consideration to the following factors: 33
521	521	(i) The average retail price of similar vehicles of the same make, model, type, and year of 34
522	522
523	523
524	524	LC002278 - Page 15 of 22
525	525	manufacture as reported by motor vehicle dealers or by official used car guides, such as that of the 1
526	526	National Automobile Dealers Association for New England. Where regional guides are not 2
527	527	available, the commission shall use other publications deemed appropriate; and 3
528	528	(ii) Other information concerning the average retail prices for make, model, type, and year 4
529	529	of manufacture of motor vehicles as the director and the Rhode Island vehicle value commission 5
530	530	may deem appropriate to determine fair values. 6
531	531	(iii) Notwithstanding the foregoing, the presumptive value of vehicles and trailers subject 7
532	532	to the excise tax shall not exceed the following percentage of clean retail value for those vehicles 8
533	533	reported by the National Automobile Dealers Association Official Used Car Guide New England 9
534	534	Edition: 10
535	535	FISCAL YEAR PERCENTAGE 11
536	536	2018 95% 12
537	537	2019 90% 13
538	538	2020 85% 14
539	539	2021 80% 15
540	540	2022 75% 16
541	541	2023 70% 17
542	542	In the event that no such clean retail value is reported, the presumptive value shall not 18
543	543	exceed the above percentages of the following: 19
544	544	(A) Manufacturer’s suggested retail price (MSRP) for new model year vehicles as reported 20
545	545	by the National Automobile Dealers Association Guides; or 21
546	546	(B) Average retail value for those vehicles reported by the National Automobile Dealers 22
547	547	Association Official Used Car Guide National Edition and Motorcycle/Snowmobile/ATV/Personal 23
548	548	Watercraft Appraisal Guide; or 24
549	549	(C) Used retail value for those vehicles reported in the National Association of Automobile 25
550	550	Dealers Recreational Vehicle Appraisal Guide; or 26
551	551	(D) Low value for those vehicles reported in the National Automobile Dealers Association 27
552	552	Classic, Collectible, Exotic and Muscle Car Appraisal Guide & Directory. 28
553	553	(2) On or before February 1 of each year, it shall adopt a list of values for vehicles and 29
554	554	trailers of the same make, model, type, and year of manufacture as of the preceding December 31 30
555	555	in accordance with the methodology adopted between September 30 and December 31; the list shall 31
556	556	be subject to a public hearing at least five (5) business days prior to the date of its adoption. 32
557	557	(3) Nothing in this section shall be deemed to require the commission to determine the 33
558	558	presumptive value of vehicles and trailers that are unique, to which special equipment has been 34
559	559
560	560
561	561	LC002278 - Page 16 of 22
562	562	added or to which special modifications have been made, or for which adequate information is not 1
563	563	available from the sources referenced in subdivision (1) of this subsection; provided, that the 2
564	564	commission may consider those factors in its lists or regulations. 3
565	565	(4) The commission shall annually provide the list of presumptive values of vehicles and 4
566	566	trailers to each tax assessor on or before February 15 of each year. 5
567	567	(d) The commission shall adopt rules governing its organization and the conduct of its 6
568	568	business; prior to the adoption of the rules, the chair shall have the power to call meetings, and a 7
569	569	simple majority of the members of the commission, as provided for in subsection (b) of this section, 8
570	570	is necessary for a quorum, which quorum by majority vote shall have the power to conduct business 9
571	571	in the name of the commission. The commission may adopt rules and elect from among its members 10
572	572	such other officers as it deems necessary. 11
573	573	(e) The commission shall have the power to contract for professional services that it deems 12
574	574	necessary for the development of the methodology for determining presumptive values; for 13
575	575	calculating presumptive values according to the methodology; and for preparing the list of 14
576	576	presumptive values in a form and format that is generally usable by cities and towns in their 15
577	577	preparation of tax bills. The commission shall also have the power to incur reasonable expenses in 16
578	578	the conduct of its business as required by this chapter and to authorize payments for the expenses. 17
579	579	(f) Commission members shall receive no compensation for the performance of their duties 18
580	580	but may be reimbursed for their reasonable expenses incurred in carrying out such duties. 19
581	581	(g) The commission shall respond to petitions of appeal by local boards of review in 20
582	582	accordance with the provisions of § 44-34-9. 21
583	583	(h) The commission shall establish, by rule, procedures for adopting an annual budget and 22
584	584	for administering its finances. After July 1, 1986, one-half (
585	585	1
586	586	/2) of the cost of the commission’s 23
587	587	operations shall be borne by the state and one-half (
588	588	1
589	589	/2) shall be borne by cities and towns within 24
590	590	the state, with the city and town share distributed among cities and towns on a per capita basis. 25
591	591	(i) Within ninety (90) days after the end of each fiscal year, the commission shall approve 26
592	592	and submit an annual report to the governor, the speaker of the house of representatives, the 27
593	593	president of the senate, and the secretary of state of its activities during that fiscal year. The report 28
594	594	shall provide: an operating statement summarizing meetings or hearings held, meeting minutes if 29
595	595	requested, subjects addressed, decisions rendered, rules or regulations promulgated, studies 30
596	596	conducted, policies and plans developed, approved, or modified, and programs administered or 31
597	597	initiated; a consolidated financial statement of all funds received and expended including the source 32
598	598	of the funds, a listing of any staff supported by these funds, and a summary of any clerical, 33
599	599	administrative or technical support received; a summary of performance during the previous fiscal 34
600	600
601	601
602	602	LC002278 - Page 17 of 22
603	603	year including accomplishments, shortcomings and remedies; a synopsis of hearings, complaints, 1
604	604	suspensions, or other legal matters related to the authority of the commission; a summary of any 2
605	605	training courses held pursuant to this subsection, a briefing on anticipated activities in the upcoming 3
606	606	fiscal year; and findings and recommendations for improvements. The report shall be posted 4
607	607	electronically on the general assembly and the secretary of state’s websites as prescribed in § 42-5
608	608	20-8.2. The director of the department of revenue shall be responsible for the enforcement of this 6
609	609	provision. 7
610	610	44-34-12. Cooperation of state agencies. 8
611	611	The department of revenue shall provide space and secretarial and clerical services to the 9
612	612	Rhode Island vehicle value commission without charge to the commission. The department of 10
613	613	transportation, and the department of revenue shall provide, consistent with law, information that 11
614	614	is in their possession, which the commission determines to be useful or necessary in the conduct of 12
615	615	its responsibilities. 13
616	616	44-34-13. Tax exemption on vehicles adapted for persons who are disabled. 14
617	617	(a) The city or town councils of the various cities and towns may, by ordinance, exempt 15
618	618	from taxation up to fifty percent (50%) of the value of any motor vehicle that is necessary to 16
619	619	transport a family member with a disability or where the vehicle has been specially adapted to meet 17
620	620	the specific needs of the person with a disability. This exemption shall apply to not more than one 18
621	621	motor vehicle owned and registered for personal, noncommercial use. After the assessors have 19
622	622	allowed an exemption under this section, no further evidence of the existence of the facts required 20
623	623	by this section shall be required in any subsequent year in the city or town in which the exemption 21
624	624	has been allowed. 22
625	625	(b) For the purpose of this section: 23
626	626	(1) “Special adaptations” includes, but is not limited to: wheelchair lifts; wheelchair 24
627	627	carriers; wheelchair ramps; wheelchair securements; hand controls; steering devices; extensions, 25
628	628	relocations, and crossovers of operator controls; power assisted controls; raised tops or dropped 26
629	629	floors; raised entry doors; or alternative signaling devices to auditory signals. 27
630	630	(2) “Specially adapted motor vehicle” means a motor vehicle with special adaptations; 28
631	631	provided, that the cost of the special adaptations meets or exceeds seven percent (7%) of the value 29
632	632	of the motor vehicle; provided, further, that the town of Johnston may, by ordinance, provide for 30
633	633	an exemption when the cost of special adaptations is not less than two percent (2%). 31
634	634	44-34-14. Exemption for certain vehicles in the town of Warren. 32
635	635	The town of Warren may by ordinance exempt from the tax imposed by this chapter in an 33
636	636	amount not to exceed one hundred dollars ($100) motor vehicles registered in Warren primarily 34
637	637
638	638
639	639	LC002278 - Page 18 of 22
640	640	fueled by: 1
641	641	(1) Gas produced from biomass, with “biomass” meaning any organic material other than 2
642	642	oil, natural gas and coal (including lignite) or any product thereof; 3
643	643	(2) Liquid, gaseous or solid synthetic fuels, produced from coal; 4
644	644	(3) Coke or coke gas; or 5
645	645	(4) Electric motor drawing current from rechargeable batteries, fuel cells or other portable 6
646	646	sources of electrical current. 7
647	647	SECTION 4. Sections 44-34.1-1 and 44-34.1-3 of the General Laws in Chapter 44-34.1 8
648	648	entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998" are hereby repealed. 9
649	649	44-34.1-1. Excise tax phase-out. 10
650	650	(a)(1) Notwithstanding the provisions of chapter 34 of this title or any other provisions to 11
651	651	the contrary, the motor vehicle and trailer excise tax established by § 44-34-1 may be phased out. 12
652	652	The phase-out shall apply to all motor vehicles and trailers, including leased vehicles. 13
653	653	(2) Lessors of vehicles that pay excise taxes directly to municipalities shall provide lessees, 14
654	654	at the time of entering into the lease agreement, an estimate of annual excise taxes payable 15
655	655	throughout the term of the lease. In the event the actual excise tax is less than the estimated excise 16
656	656	tax, the lessor shall annually rebate to the lessee the difference between the actual excise tax and 17
657	657	the estimated excise tax. 18
658	658	(b) Pursuant to the provisions of this section, all motor vehicles shall be assessed a value 19
659	659	by the vehicle value commission. That value shall be assessed according to the provisions of § 44-20
660	660	34-11(c)(1) and in accordance with the terms as defined in subsection (d) of this section; provided, 21
661	661	however, that the maximum taxable value percentage applicable to model year values as of 22
662	662	December 31, 1997, shall continue to be applicable in future year valuations aged by one year in 23
663	663	each succeeding year. 24
664	664	(c)(1) The motor vehicle excise tax phase-out shall commence with the excise tax bills 25
665	665	mailed to taxpayers for the fiscal year 2000. The phase-out, beyond fiscal year 2003, shall be 26
666	666	subject to annual review and appropriation by the general assembly. The tax assessors of the various 27
667	667	cities and towns and fire districts shall reduce the average retail value of each vehicle assessed by 28
668	668	using the prorated exemptions from the following table: 29
669	669	Local Fiscal Year Exempt from value Local Exemption State fiscal year Reimbursement 30
670	670	fiscal year 1999 0 $1,500 31
671	671	fiscal year 2000 $1,500 $2,500 32
672	672	fiscal year 2001 $2,500 $3,500 33
673	673	fiscal year 2002 $3,500 $4,500 34
674	674
675	675
676	676	LC002278 - Page 19 of 22
677	677	fiscal years 2003, 2004 and 2005 $4,500 $4,500 1
678	678	for fiscal year 2006 and $5,000 $5,000 2
679	679	for fiscal year 2007 $6,000 $6,000 3
680	680	for fiscal years 2008, 2009 and 2010 the exemption and the state fiscal year reimbursement 4
681	681	shall be increased, at a minimum, to the maximum amount to the nearest two hundred and fifty 5
682	682	dollar ($250) increment within the allocation of one and twenty-two hundredths percent (l.22%) of 6
683	683	net terminal income derived from video lottery games pursuant to the provisions of § 42-61-15, 7
684	684	and in no event shall the exemption in any fiscal year be less than the prior fiscal year. 8
685	685	(i) For fiscal year 2011 through fiscal year 2017, the exemption shall be five hundred 9
686	686	dollars ($500). Cities and towns may provide an additional exemption; provided, however, any 10
687	687	such additional exemption shall not be subject to reimbursement. 11
688	688	(ii) For fiscal year 2018, cities, towns, and fire districts shall provide an exemption equal 12
689	689	to the greater of one thousand dollars ($1,000) or the exemption in effect in fiscal year 2017. 13
690	690	(iii) For fiscal year 2019, cities, towns, and fire districts shall provide an exemption equal 14
691	691	to the greater of two thousand dollars ($2,000) or the exemption in effect in fiscal year 2017. 15
692	692	(iv) For fiscal year 2020, cities, towns, and fire districts shall provide an exemption equal 16
693	693	to the greater of three thousand dollars ($3,000) or the exemption in effect in fiscal year 2017. 17
694	694	(v) For fiscal year 2021, cities, towns, and fire districts shall provide an exemption equal 18
695	695	to the greater of four thousand dollars ($4,000) or the exemption in effect in fiscal year 2017. 19
696	696	(vi) For fiscal year 2022, cities, towns, and fire districts shall provide an exemption equal 20
697	697	to the greater of five thousand dollars ($5,000) or the exemption in effect in fiscal year 2017. 21
698	698	(vii) For fiscal year 2023, cities, towns, and fire districts shall provide an exemption equal 22
699	699	to the greater of six thousand dollars ($6,000) or the exemption in effect in fiscal year 2017. 23
700	700	(viii) For fiscal year 2024 and thereafter, no tax shall be levied. 24
701	701	(2) The excise tax phase-out shall provide levels of assessed value reductions until the tax 25
702	702	is eliminated or reduced as provided in this chapter. 26
703	703	(3) Current exemptions shall remain in effect as provided in this chapter. 27
704	704	(4) The excise tax rates and ratios of assessment shall be maintained at a level identical to 28
705	705	the level in effect for fiscal year 1998 for each city, town, and fire district; provided, in the town of 29
706	706	Johnston, the excise tax rate and ratios of assessment shall be maintained at a level identical to the 30
707	707	level in effect for fiscal year 1999 levels and the levy of a city, town, or fire district shall be limited 31
708	708	to the lesser of the maximum taxable value or net assessed value for purposes of collecting the tax 32
709	709	in any given year. Provided, however, for fiscal year 2011 through fiscal year 2017, the rates and 33
710	710	ratios of assessment may be less than but not more than the rates described in this subsection (4). 34
711	711
712	712
713	713	LC002278 - Page 20 of 22
714	714	(5) For fiscal year 2018 and thereafter, the excise tax rate applied by a city, town, or fire 1
715	715	district, shall not exceed the rate in effect in fiscal year 2017 and shall not exceed the rate set forth 2
716	716	below: 3
717	717	(6) In no event shall a taxpayer be billed more than the prior year for a vehicle owned up 4
718	718	to the same number of days unless an increased bill is the result of no longer being eligible for a 5
719	719	local tax exemption. 6
720	720	(d) Definitions.(1) “Maximum taxable value” means the value of vehicles as prescribed by 7
721	721	§ 44-34-11 reduced by the percentage of assessed value applicable to model year values as 8
722	722	determined by the Rhode Island vehicle value commission as of December 31, 1997, for the 9
723	723	vehicles valued by the commission as of December 31, 1997. For all vehicle value types not valued 10
724	724	by the Rhode Island vehicle value commission as of December 31, 1997, the maximum taxable 11
725	725	value shall be the latest value determined by a local assessor from an appropriate pricing guide, 12
726	726	multiplied by the ratio of assessment used by that city, town, or fire district for a particular model 13
727	727	year as of December 31, 1997. The maximum taxable value shall be determined in such a manner 14
728	728	as to incorporate the application of the percentage corresponding with the appropriate fiscal year 15
729	729	as specified in § 44-34-11(c)(1)(iii). 16
730	730	(2) “Net assessed value” means the motor vehicle values as determined in accordance with 17
731	731	§ 44-34-11 less all personal exemptions allowed by cities, towns, fire districts, and the state of 18
732	732	Rhode Island exemption value as provided for in subsection (c)(1) of this section. 19
733	733	(e) If any provision of this chapter shall be held invalid by any court of competent 20
734	734	jurisdiction, the remainder of this chapter and the applications of the provisions hereof shall not be 21
735	735	effected thereby. 22
736	736	44-34.1-3. Permanent oversight commission. 23
737	737	(a) There is created a permanent oversight commission on inventory taxes and automobile 24
738	738	excise taxes. The commission shall consist of the following members: 25
739	739	(1) Chairperson of house finance committee, or designee; 26
740	740	(2) Chairperson of senate finance committee, or designee; 27
741	741	(3) Chairperson of the Rhode Island vehicle value commission; 28
742	742	(4) Three (3) members of the Rhode Island Assessors Association; 29
743	743	(5) Director of department of revenue, or designee; 30
744	744	(6) Chief of the division of property valuation and municipal finance, or designee; 31
745	745	(7) The president of the Rhode Island League of Cities and Towns, or designee; 32
746	746	(8) The administrator of the Rhode Island division of motor vehicles, or designee; 33
747	747	(9) The mayor of the city of Providence, or designee. 34
748	748
749	749
750	750	LC002278 - Page 21 of 22
751	751	(b) The purpose of the commission shall be to study and evaluate the phase-out of the 1
752	752	automobile excise tax and to establish procedures when necessary to facilitate the phase-out of the 2
753	753	tax by July 1, 2005. 3
754	754	(c) The commission, at its first meeting, shall elect a chairperson from its membership. 4
755	755	(d) The commission shall meet no less than two (2) times per year at the call of the 5
756	756	chairperson or upon the request of at least three (3) of its members. 6
757	757	(e) The members shall receive no compensation for their services. All departments and 7
758	758	agencies of the state shall furnish advice and information, documentary or otherwise, to the 8
759	759	commission and its agents as is deemed necessary or desirable by the commission to facilitate the 9
760	760	purposes of the commission. 10
761	761	SECTION 5. Section 31-2-13 of the General Laws in Chapter 31-2 entitled "Division of 11
762	762	Motor Vehicles" is hereby repealed. 12
763	763	31-2-13. Report to tax assessors of vehicles registered. 13
764	764	(a) As soon as practical after January 1 in every year, the division of motor vehicles shall 14
765	765	furnish, without charge, to the tax assessors of each city or town in this state, a statement of the 15
766	766	motor vehicles registered from that city or town on and after January 1 and through the thirty-first 16
767	767	day of December of the previous year and the inclusive dates of their registration within this period. 17
768	768	(b) The provisions of this section shall apply in all respects in the case of taxes assessed 18
769	769	upon motor vehicles by any fire district. 19
770	770	SECTION 6. This act shall take effect on July 1, 2023. 20
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772	772	LC002278
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774	774
775	775
776	776	LC002278 - Page 22 of 22
777	777	EXPLANATION
778	778	BY THE LEGISLATIVE COUNCIL
779	779	OF
780	780	A N A C T
781	781	RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION
782	782	***
783	783	This act would amend the reimbursements to cities, towns and fire districts from state 1
784	784	revenues for lost tax revenue due to any phase-out or reduction of the motor vehicle excise tax. 2
785	785	This act would take effect on July 1, 2023. 3
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787	787	LC002278
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789	789