PROVIDENCE – Calling the motor-vehicle excise tax “an oppressive burden to everyone in the state” who owns a car, state Rep. Joanne M. Giannini (D-Providence) has introduced a bill to resume the motor vehicle property tax phase-out, which the General Assembly approved seven years ago but has been frozen for the past several budgets.
“Rhode Islanders carry one of the highest property tax burdens in the country,” Giannini said. “Our residents deserve real relief, and we need to fulfill the commitment we made to the people of Rhode Island.”
The bill, H-5078, would eliminate the motor vehicle excise tax by 2008. Residents would begin seeing savings on their 2005 tax bills, when $8,000 of their car’s total value would be exempt from taxation. In 2006, $10,000 would be exempt; in 2007, $15,000 of the car’s value would be exempt; and in 2008 the tax would be eliminated.
Cities and towns would receive advance reimbursements from state general revenues equal to the amount of lost tax revenue due to the phase-out of the excise tax.
Giannini chaired a legislative commission that studied and helped craft the phase-out and cosponsored the original bill in 1998 that would have eradicated the excise tax by 2007. Her bill has been sent to the House Finance Committee for its consideration.
