RI
Rhode Island Senate Bill S0095

Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0095

Introduced
1/31/25  

Caption

Exempts the trade-in value of pickup trucks under six thousand pounds (6,000 lbs.) gross weight, used exclusively for personal use, from sales tax.

Impact

If passed, S0095 will directly impact the state's sales tax laws by modifying the computation of taxable sales involving pickup trucks. This change could result in a decrease in tax revenue for the state, but it is expected to encourage trade-ins by reducing overall tax liability for consumers. The bill aligns with broader efforts to stimulate the economy by incentivizing individuals to upgrade their vehicles, supporting the automotive industry, which can contribute to job creation and economic growth in Rhode Island.

Summary

S0095 is a legislative act proposed in Rhode Island that aims to amend the existing sales and use tax regulations by providing an exemption for the trade-in value of pickup trucks. Specifically, the bill seeks to eliminate sales tax on the trade-in value of pickup trucks that weigh less than 6,000 pounds and are used exclusively for personal purposes. This exemption is intended to relieve the financial burden on individuals looking to trade in their vehicles for a newer model, promoting consumer spending in the local automotive market.

Conclusion

Ultimately, S0095 represents a focused attempt by Rhode Island lawmakers to address specific concerns around taxation and vehicle ownership. The outcome of this bill will depend on legislative discussions, public feedback, and consideration of its broader fiscal implications for the state's economy.

Contention

Notably, the bill may face contention regarding its implications on tax equity and state revenue. Critics may argue that such tax exemptions could disproportionately benefit wealthier individuals who can afford to purchase new vehicles, potentially exacerbating income inequalities. Proponents, however, may contend that the bill provides necessary relief and keeps the automotive market robust, especially given the importance of personal transportation for many residents.

Latest S0095 Activity

Companion Bills

No companion bills found.

Previously Filed As

RI S0340

Imposes the sales tax on the purchase of animals from a breeder.

RI H5788

Prohibits the collection of sales tax on refundable deposits for batteries and core charges for motor vehicle equipment, parts or components.

RI H5476

Removes the exemption from the state hotel tax for residences rented in their entirety.

RI H5785

Creates a sales tax holiday on August 9 and 10, 2025.

RI S0045

Removes the exemption from the state hotel tax for residences rented in their entirety on a hosting platform on or after January 1, 2026, for a period of thirty (30) nights or less.

RI S0416

Phases out the local meals and beverage tax by January 1, 2029.

RI S0335

Removes the exemption from the state hotel tax for residences rented in their entirety. Effective 1/1/2026.

RI H5405

Establishes a restricted receipt account for the benefit of the Rhode Island public transit authority, funded by sales taxes collected from ride-share companies, which said sales taxes would be exempt from indirect cost recovery provisions.

Similar Bills

RI H5475

Exempts new or used bicycles from sale and use tax.

RI S0435

Exempts from the sales tax eligible school supplies, costing less than $30.00, purchased within one week prior to the commencement of the academic year.

RI S0432

Exempts from the sales tax firearm safety equipment, storage devices, gun safes, gun cabinets, gun vaults, gun cases, strong boxes, cable locks, trigger locks and biometric locks.

RI H5787

Exempts from the sales tax eligible school supplies, costing less than $30.00, purchased within one week prior to the commencement of the academic year.

RI H6014

Exempts from the sales tax firearm safety equipment, storage devices, gun safes, gun cabinets, gun vaults, gun cases, strong boxes, cable locks, trigger locks and biometric locks.

RI S0041

Exempts from sales tax the trade-in values of motorcycles as well the proceeds received as a result of an unrecovered stolen or total loss of a motorcycle.

RI S0031

Exempts the trade-in value of pickup trucks weighing fourteen thousand pounds (14,000 lbs.) or less from sales and use tax.

RI S0099

Exempts the trade-in value of pickup trucks under eight thousand one hundred pounds (8,100 lbs.) gross weight, used exclusively for personal use, from sales tax.