law23204

Chapter 204

2023 -- S 0705
Enacted 06/21/2023

A N A C T

RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION

Introduced By: Senators Tikoian, Britto, Burke, DiPalma, McKenney, and Euer

Date Introduced: March 22, 2023

It is enacted by the General Assembly as follows:

SECTION 1. Section 44-3-2.2 of the General Laws in Chapter 44-3 entitled "Property

Subject to Taxation" is hereby amended to read as follows:

44-3-2.2. Tax on certain vehicles and trailers prohibited.

Notwithstanding any other provisions of the general laws to the contrary, no city or town

shall assess any tax under chapter 5 of this title 44 on any vehicle or trailer, which that is registered

under chapter 3 of title 31 and taxed under chapter 34 of title 44. Any vehicle or trailer, which that

is not registered under chapter 3 of title 31, shall be assessed by a city or town in the same manner

as other tangible personal property.

SECTION 2. Section 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled "Motor

Vehicle and Trailer Excise Tax Elimination Act of 1998" is hereby amended to read as follows:

44-34.1-2. City, town and fire district reimbursement.

(a) In fiscal years 2000 2024 and thereafter, cities, towns, and fire districts shall receive

reimbursements, as set forth in this section, from state general revenues equal to the amount of lost

tax revenue due to the phase out or reduction of the excise tax. Cities, towns, and fire districts shall

receive advance reimbursements through state fiscal year 2002. In the event When the tax is phased

out, cities, towns, and fire districts shall receive a permanent distribution of sales tax revenue

pursuant to § 44-18-18 in an amount equal to any lost revenue resulting from the excise tax

elimination. Lost revenues must be determined using a base tax rate fixed at fiscal year 1998 levels

for each city, town, and fire district, except that the town of Johnston’s base tax rate must be fixed

at a fiscal year 1999 level. Provided, however, for fiscal year 2011 and thereafter, the base tax rate

may be less than but not more than the rates described in this subsection (a).

(b)(1) The director of administration shall determine the amount of general revenues to be

distributed to each city, town, and fire district for the fiscal years 1999 and thereafter so that every

city, town, and fire district is held harmless from tax loss resulting from this chapter, assuming that

tax rates are indexed to inflation through fiscal year 2003.

(2) The director of administration shall index the tax rates for inflation by applying the

annual change in the December Consumer Price Index — All Urban Consumers (CPI-U), published

by the Bureau of Labor Statistics of the United States Department of Labor, to the indexed tax rate

used for the prior fiscal year calculation; provided, that for state reimbursements in fiscal years

2004 and thereafter, the indexed tax rate shall not be subject to further CPI-U adjustments. The

director shall apply the following principles in determining reimbursements:

(i) Exemptions granted by cities, towns, and fire districts in the fiscal year 1998 must be

applied to assessed values prior to applying the exemptions in § 44-34.1-1(c)(1). Cities, towns, and

fire districts will not be reimbursed for these exemptions.

(ii) City, town, and fire districts shall be reimbursed by the state for revenue losses

attributable to the exemptions provided for in § 44-34.1-1 and the inflation indexing of tax rates

through fiscal 2003. Reimbursement for revenue losses shall be calculated based upon the

difference between the maximum taxable value less personal exemptions and the net assessed

value.

(iii) Inflation reimbursements shall be the difference between:

(A) The levy calculated at the tax rate used by each city, town, and fire district for fiscal

year 1998 after adjustments for personal exemptions but prior to adjustments for exemptions

contained in § 44-34.1-1(c)(1); provided, that for the town of Johnston, the tax rate used for fiscal

year 1999 must be used for the calculation; and

(B) The levy calculated by applying the appropriate cumulative inflation adjustment

through state fiscal 2003 to the tax rate used by each city, town, and fire district for fiscal year

1998; provided, that for the town of Johnston the tax rate used for fiscal year 1999 shall be used

for the calculation after adjustments for personal exemptions but prior to adjustments for

exemptions contained in § 44-34.1-1.

(3) For fiscal year 2018 and thereafter, each city, town, and fire district shall tax motor

vehicles and trailers pursuant to chapter 34 of title 44 using the same motor vehicle and trailer

excise tax calculation methodology that was employed for fiscal year 2017, where motor vehicle

and trailer excise tax calculation methodology refers to the application of specific tax practices and

the order of operations in the determination of the tax levied on any given motor vehicle and/or

trailer.

(4) Each city, town, and fire district shall report to the department of revenue, as part of the

submission of the certified tax levy pursuant to § 44-5-22, the motor vehicle and trailer excise tax

calculation methodology that was employed for fiscal year 2017. For fiscal year 2018 and

thereafter, the department of revenue is authorized to confirm that each city, town, or fire district

has used the same motor vehicle and trailer excise tax methodology as was used in fiscal year 2017

and the department of revenue shall have the final determination as to whether each city, town, or

fire district has in fact complied with this requirement. Should the department of revenue determine

that a city, town, or fire district has failed to cooperate or comply with the requirement in this

section, the city, town, or fire district’s reimbursement for the items noted in subsections (c)(13)(i)

through (c)(13)(iv) of this section shall be withheld until such time as the department of revenue

deems the city, town, or fire district to be in compliance.

(5) For purposes of reimbursement for the items noted in subsections (c)(13)(i) through

(c)(13)(iv) of this section, the FY 2018 baseline from which the reimbursement amount shall be

calculated is defined as the motor vehicle and trailer excise tax levy that would be generated by

applying the fiscal year 2017 motor vehicle and trailer excise tax calculation methodology to the

assessed value of motor vehicles and trailers as of fiscal year 2018. The amount of reimbursement

that each city, town, or fire district receives shall be the difference between the FY 2018 baseline

and the certified motor vehicle and trailer excise tax levy as submitted by each city, town, and fire

district as confirmed by the department of revenue. The department of revenue shall determine the

reimbursement amount for each city, town, and fire district.

(6) For fiscal year 2020 and thereafter, the department of revenue shall assess the feasibility

of standardizing the motor vehicle and trailer excise tax calculation methodology across all cities,

towns, and fire departments. Based on this assessment, the department of revenue may make

recommendations for changes to the motor vehicle and trailer excise tax calculation methodology.

Beginning on January 1, 2021, the director of the department of revenue shall file an annual

report for the consideration of the general assembly with the president of the senate, speaker of the

house, chairperson of the senate committee on finance and chairperson of the house committee on

finance, containing recommendations and findings as to the feasibility of the motor vehicle excise

tax phase-out in each year until the phase-out is complete.

(b)(l) In fiscal year 2024, cities, towns, and fire districts shall receive the

following reimbursement amounts:

Barrington $5,894,822

Bristol $2,905,818

Burrillville $5,053,933

Central Falls $2,077,974

Charlestown $1,020,877

Coventry $5,872,396

Cranston $22,312,247

Cumberland $6,073,469

East Greenwich $2,417,332

East Providence $11,433,479

Exeter $2,241,381

Foster $1,652,251

Glocester $2,381,941

Hopkinton $1,629,259

Jamestown $622,793

Johnston $10,382,785

Lincoln $5,683,015

Little Compton $366,775

Middletown $1,976,448

Narragansett $1,831,251

Newport $2,223,671

New Shoreham $163,298

North Kingstown $5,378,818

North Providence $9,619,286

North Smithfield $4,398,531

Pawtucket $16,495,506

Portsmouth $2,414,242

Providence $34,131,596

Richmond $1,448,455

Scituate $1,977,127

Smithfield $7,098,694

South Kingstown $3,930,455

Tiverton $1,748,175

Warren $2,090,911

Warwick $25,246,254

Westerly $5,765,523

West Greenwich $1,331,725

West Warwick $5,673,744

Woonsocket $9,324,776

Lime Rock Fire District $133,933

Lincoln Fire District $208,994

Manville Fire District $64,862

Quinnville Fire District $13,483

(c)(1) Funds (2) In fiscal year 2024, funds shall be distributed to the cities, towns, and fire

districts as follows:

(i) On October 20, 1998, and each October 20 thereafter through October 20, 2001, twenty-

five percent (25%) of the amount calculated by the director of administration to be the difference

for the upcoming fiscal year.

(ii) On February 20, 1999, and each February 20 thereafter through February 20, 2002,

twenty-five percent (25%) of the amount calculated by the director of administration to be the

difference for the upcoming fiscal year.

(iii) On June 20, 1999, and each June 20 thereafter through June 20, 2002, fifty percent

(50%) of the amount calculated by the director of administration to be the difference for the

upcoming fiscal year.

(iv)(i) On August 1, 2002, and each August 1 thereafter August 1, 2023, twenty-five

percent (25%) of the amount calculated by the director of administration to be the difference for

the current fiscal year funds.

(v)(ii) On November 1, 2002, and each November 1 thereafter November 1, 2023, twenty-

five percent (25%) of the amount calculated by the director of administration to be the difference

for the current fiscal year funds.

(vi)(iii) On February 1, 2003, and each February 1 thereafter February 1, 2024, twenty-five

percent (25%) of the amount calculated by the director of administration to be the difference for

the current fiscal year funds.

(vii)(iv) On May 1, 2003, and each May 1 thereafter, except May 1, 2010 May 1, 2024,

twenty-five percent (25%) of the amount calculated by the director of administration to be the

difference for the current fiscal year funds.

The funds shall be distributed to each city, town, and fire district in the same proportion as

distributed in fiscal year 2023.

(viii) On June 15, 2010, twenty-five percent (25%) of the amount calculated by the director

of administration to be the difference for the current fiscal year.

Provided, however, the February and May payments, and June payment in 2010, shall be

subject to submission of final certified and reconciled motor vehicle levy information.

(2) Each city, town, or fire district shall submit final certified and reconciled motor vehicle

levy information by August 30 of each year. Any adjustment to the estimated amounts paid in the

previous fiscal year shall be included or deducted from the payment due November 1.

(3) For the city of East Providence, the payment schedule is twenty-five percent (25%) on

November 1, 2023, twenty-five percent (25%) on February 1, 2024, twenty-five percent (25%) on

May 1, 2024, and twenty-five percent (25%) on August 1, 2024.

(3)(4) On any of the payment dates specified in paragraphs (1)(i) through (vii) (b)(2)(i)

through (b)(2)(iv) or (b)(3) of this subsection, the director of revenue is authorized to deduct

previously made over-payments or add supplemental payments as may be required to bring the

reimbursements into full compliance with the requirements of this chapter.

(4) For the city of East Providence, the payment schedule is twenty-five percent (25%) on

February 20, 1999, and each February 20 thereafter through February 20, 2002, twenty-five percent

(25%) on June 20, 1999, and each June 20 thereafter through June 20, 2002, which includes final

reconciliation of the previous year’s payment, and fifty percent (50%) on October 20, 1999, and

each October 20 thereafter through October 20, 2002. For local fiscal years 2003 and thereafter,

the payment schedule is twenty-five percent (25%) on each November 1, twenty-five percent (25%)

on each February 1, twenty-five percent (25%) on each May 1, which includes final reconciliation

of the previous year’s payment, and twenty-five percent (25%) on each August 1; provided, the

May and August payments shall be subject to submission of final certified and reconciled motor

vehicle levy information.

(5) When the tax is phased out, funds distributed to the cities, towns, and fire districts for

the following fiscal year shall be calculated as the funds distributed in the fiscal year of the phase-

out. Twenty-five percent (25%) of the amounts calculated shall be distributed to the cities, towns,

and fire districts on August 1, in the fiscal year of the phase-out, twenty-five percent (25%) on the

following November 1, twenty-five percent (25%) on the following February 1, and twenty-five

percent (25%) on the following May 1. The funds shall be distributed to each city, town, and fire

district in the same proportion as distributed in the fiscal year of the phase-out.

(6)(c) When the tax is phased out to August 1, of the following fiscal year the director of

revenue shall calculate to the nearest thousandth of one cent ($0.00001) the number of cents of

sales tax received for the fiscal year ending June 30, of the year following the phase-out equal to

the amount of funds distributed to the cities, towns, and fire districts under this chapter during the

fiscal year following the phase-out and the percent of the total funds distributed in the fiscal year

following the phase-out received by each city, town, and fire district, calculated to the nearest one-

hundredth of one percent (0.01%). The director of the department of revenue shall transmit those

calculations to the governor, the speaker of the house, the president of the senate, the chairperson

of the house finance committee, the chairperson of the senate finance committee, the house fiscal

advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for

the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to

the cities, towns, and fire districts under this chapter for the second fiscal year following the phase-

out and each year thereafter. The cities, towns, and fire districts shall receive that amount of sales

tax in the proportions calculated by the director of revenue as that received in the fiscal year

following the phase-out.

(7)(d) When the tax is phased out, In fiscal years 2025 and thereafter, twenty-five percent

(25%) of the funds shall be distributed to the cities, towns, and fire districts on August 1 of the

following fiscal year, August 1, 2024, and every August 1 thereafter; twenty-five percent (25%)

shall be distributed on the following November 1, November 1, 2024, and every November 1

thereafter; twenty-five percent (25%) shall be distributed on the following February 1, February 1,

2025, and every February 1 thereafter; and twenty-five percent (25%) shall be distributed on the

following May 1, May 1, 2025, and every May 1 thereafter.

(8)(e) For the city of East Providence, in the event the tax is phased out fiscal years 2025

and thereafter, twenty-five percent (25%) shall be distributed on November 1 of the following fiscal

year November 1, 2024, and every November 1 thereafter, twenty-five percent (25%) shall be

distributed on the following February 1, February 1, 2025, and every February 1 thereafter; twenty-

five percent (25%) shall be distributed on the following May 1, May 1, 2025, and every May 1

thereafter; and twenty-five percent (25%) of the funds shall be distributed on the following August

1, August 1, 2025, and every August 1 thereafter.

(9) As provided for in § 44-34-6, the authority of fire districts to tax motor vehicles is

eliminated effective with the year 2000 tax roll and the state reimbursement for fire districts shall

be based on the provisions of § 44-34-6. All references to fire districts in this chapter do not apply

to the year 2001 tax roll and thereafter.

(10) For reimbursements payable in the year ending June 30, 2008, and thereafter, the

director of administration shall discount the calculated value of the exemption to ninety-eight

percent (98%) in order to establish a collection rate that is comparable to the collection rate

achieved by municipalities in the levy of the motor vehicle excise tax.

(11) For reimbursements payable in the year ending June 30, 2010, the director of

administration shall reimburse cities and towns eighty-eight percent (88%) of the reimbursements

payable pursuant to subsection (c)(10) above.

(12) For fiscal year 2011 through to June 30, 2017, the state shall reimburse cities and

towns, for the exemption pursuant to subsection (c)(10) above, ratably reduced to the appropriation.

(13) For fiscal year 2018 and thereafter, each city, town, and fire district shall receive a

reimbursement equal to the amount received in fiscal year 2017 plus an amount equal to the

reduction from the FY 2018 baseline, as defined in subsection (b)(5) of this section, resulting from

changes in:

(i) The assessment percentage set forth in § 44-34-11(c)(1)(iii);

(ii) The excise tax rate set forth in § 44-34.1-1(c)(5);

(iii) Exemptions set forth in § 44-34.1-1(c)(1); and

(iv) Exemptions for vehicles more than fifteen (15) years old as set forth in § 44-34-2.

(14) In the event any city, town, or fire district sent out or sends out tax bills for fiscal year

2018, which do not conform with the requirements of this act, the city, town, or fire district shall

ensure that the tax bills for fiscal year 2018 are adjusted or an abatement is issued to conform to

the requirements of this act.

SECTION 3. Chapter 44-34 of the General Laws entitled "Excise on Motor Vehicles and

Trailers" is hereby repealed in its entirety.

CHAPTER 44-34

Excise on Motor Vehicles and Trailers

44-34-1. Motor vehicle and trailer excise tax.

There is created an excise tax on motor vehicles for the state of Rhode Island. The cities

and towns are authorized to administer and collect the excise on registered motor vehicles and

trailers in lieu of property tax.

44-34-2. Assessment — Valuation — Proration — Abatement and cancellation —

Exemptions from tax.

(a) Except as provided in this section, the tax assessors of each city and town shall assess

and levy in each calendar year on every vehicle and trailer registered under chapter 3 of title 31,

for the privilege of the registration, an excise measured by its value, as subsequently defined and

determined. For the purpose of this excise, the uniform value of each vehicle shall be determined

in accordance with the regulations of the vehicle value commission. Any vehicle that is more than

fifteen (15) years old, whether or not the vehicle is an antique motor car as defined in § 31-1-3(a),

shall be deemed to possess an average retail value of five hundred dollars ($500). The assessor may

waive the excise tax on any vehicle where the annual levy would be less than five dollars ($5.00).

The state shall not provide reimbursement for any waiver.

(b) Vehicle and trailer excises shall be prorated over the calendar year prior to the year in

which the excises are levied and billed, that year being referred to as the calendar year of proration.

be based on the ratio that the number of days the vehicle or trailer is registered is to the number of

days in the calendar year of proration.

(d) If during the calendar year of proration, the owner of a vehicle or trailer subject to the

excise moves permanently with his or her vehicle to another state and cancels his or her registration

in this state and returns the registration plates, the vehicle shall be exempt from excise for the

ensuing year.

(e) “Year of manufacture” as used in this section means the year used by the manufacturer

of the vehicle or trailer in connection with the designation by the manufacturer of the model of the

vehicle or trailer. Where the presumptive price of a vehicle or trailer is not readily obtainable, or

special equipment is installed on the vehicle or trailer, the tax assessor shall prescribe the retail

price to be used or the manner in which the retail price shall be determined. In making the

determination of the presumptive price, the tax assessor shall determine the retail price of the

vehicle and then apply the percentage corresponding with the appropriate fiscal year as specified

in § 44-34-11(c)(1)(iii).

(f) Nothing in this section shall be construed to prevent any city or town council from

granting an abatement, in whole or in part, when there is an error in the assessment of a tax, and

the tax assessors have certified to the fact, in writing, to the city or town council to cancel taxes

stating the nature of the error, the valuation of the vehicle or trailer, the amount of the assessed tax,

and the name of the person to whom the vehicle or trailer was taxed.

(g) The city or town council may cancel, in whole or in part, an excise tax assessed to a

person who has died leaving no estate, or a person who has moved from the state, and the tax

collector or person acting in the capacity of tax collector certifies to the city or town council the

facts of the case.

(h) The excise imposed by this section shall not apply to vehicles or trailers owned by the

state of Rhode Island or any of its political subdivisions, or to vehicles or trailers owned by a

corporation, association, or other organization whose tangible personal property is exempt under

§§ 44-3-3(a)(1) — (a)(15), or to vehicles assessed and taxed under § 44-13-13, or those owned by

the United States government. Farm vehicles shall be exempt to the extent prescribed in § 44-5-42.

44-34-3. Assessment roll — Rate — Payment — Penalty upon non-payment.

(a) The assessor, on the basis of a list of uniform values for motor vehicles prepared by the

Rhode Island vehicle value commission pursuant to § 44-34-8, shall make a list containing the

value of every vehicle and trailer in the city or town which is subject to the provisions of § 44-34-

2, the values to be at the average retail price as determined under § 44-34-2 or at a uniform

percentage of these, not to exceed one hundred percent (100%), to be determined by the assessors

in each city or town; provided, that every vehicle and trailer in the city of Pawtucket shall be

assessed in accordance with §§ 44-5-20.1 and 44-5-20.2; provided, further, that motor vehicles

owned, leased, or utilized by rental companies, as those terms are defined in § 31-34.1-1, shall not

be valued for excise tax purposes at an amount greater than the National Automobile Dealers

Association average retail value for new vehicles for the year and vehicle model in question.

(b) The excise tax levy shall be applied to the excise assessment roll at the rate established

by the assessors for all other property except manufacturer’s machinery and equipment in

accordance with § 44-5-22 and the resulting tax roll shall be certified by the assessors to the city or

town clerk, treasurer, or tax collector, as the case may be, not later than June 15 next succeeding.

Prior to the resulting tax roll being certified to the Pawtucket city clerk, the excise levy shall be

applied to the excise assessment roll in accordance with the property tax classification described in

§§ 44-5-20.3 and 44-5-20.5. In the city of Woonsocket, the excise tax levy shall be applied to the

excise assessment roll at a rate that will produce no more than nineteen percent (19%) of the total

tax levy as prescribed in § 44-5-11.6. In the town of Lincoln, the excise tax levy shall be applied to

the excise assessment roll at a rate that produces an amount equal to no more than seventeen percent

(17%) of the total real estate tax levy.

tax roll, the tax assessment shall assess the vehicle or trailer on a supplemental excise assessment

roll and shall certify the assessment to the tax collector after June 15, but not later than December

31 next succeeding.

(d) As soon after this as possible, the tax collector shall cause excise bills to be sent by first

class mail to all persons, corporations, partnerships, joint stock companies, or associations that have

registered vehicles or trailers during the calendar year of proration. The bills shall be paid in

accordance with § 44-5-7 at the same time and on the same schedule as property tax bills. Failure

to pay the excise at the appropriated time shall bring about a penalty of eighteen percent (18%) per

annum, or, in the case of the city of Cranston, a penalty of twelve percent (12%) per annum which

applies on the date of the delinquency or, for any city or town fiscal year commencing between

January 1, 1980, and December 31, 1980, after approval by the proper local authority, at the same

rate of interest as that which is applied to delinquent property taxes in the taxing jurisdiction.

(e) Failure by the tax collector to send, or by the taxpayer to receive, a bill shall not excuse

the nonpayment of the tax or affect its validity or any proceedings for the collection.

(f) This section does not apply to any and all entities which are exempt from the excise as

prescribed in § 44-34-2.

44-34-4. Vehicle and trailer tax situs — Apportionment for interstate fleets.

(a) Tax situs of each vehicle or trailer shall be in the town or city of permanent abode of

the owner at the end of the calendar year of proration if an individual, or at the principal place of

business in this state, if a partnership, corporation, joint stock company, or association, except that

if a vehicle or trailer is customarily kept in some other town or city, then tax situs will be in that

municipality.

(b) Rented or leased vehicles shall have tax situs in the town or city where they are

customarily kept by the renter or lessee if the rental or leasing contracts shall be long term. For the

purpose of this chapter, long-term contracts are for six (6) months or more. If vehicles are rented

or leased for less than six (6) months or on a transient basis, then tax situs for the vehicles shall be

the town or city where the leasing company or agency stores the vehicles when they are not being

rented or leased.

following rules of just apportionment shall apply:

(1) If the fleet owner has a terminal where a number of its vehicles are parked, then the

average number of vehicles so parked in proportion to its total fleet value shall determine the excise;

(2) If the fleet owner does not have vehicles parked in this state but has a pickup and drop-

off station, then the number of miles traveled by its fleet in this state in proportion to the total

number of miles traveled by its fleet shall be the percentage of the total value of its fleet used to

determine the excise.

(d) Tax situs for a fleet shall be the town or city where the terminal or station is located.

(e) In the case of more than one pickup and drop-off station of a fleet owner located in the

state, the communities in which the stations are situated shall share equally the excise levied against

the fleet owner.

(f) The tax assessor may require an owner to disclose any or all information necessary to

determine tax situs and value of the vehicles and trailers that are subject to excise.

(g) If the owner fails to supply the requested information, then the tax assessor shall assess

the vehicles and trailers at what he or she deems to be their value, and the owner, if overtaxed, shall

have no remedy for this assessment.

44-34-4.1. Exemptions for buses, trucks and trailers in interstate commerce.

(a) Notwithstanding any provision of the general laws to the contrary, the operation of a

truck, or trailer by a trucking company in interstate commerce shall not be subject to the provisions

of the excise tax imposed by this chapter, on the condition that the truck and/or trailer is utilized

exclusively in interstate commerce.

(b) Notwithstanding any provision of the law or regulation to the contrary, the operation of

a bus by a bus company in interstate commerce shall not be subject to the provisions of the excise

tax imposed by this chapter, on the condition that the bus is used eighty percent (80%) or more of

the time in interstate commerce and provided that the bus company shall provide a properly

executed affidavit attesting to the fact that the bus is used no less than eighty percent (80%) of the

time in interstate commerce.

44-34-5. Veterans’ and other property tax exemptions.

(a) Those veterans, gold star parents, and blind persons who qualify for property tax

exemption under §§ 30-22-1 — 30-22-4 and §§ 44-3-4, 44-3-5, and 44-3-12 shall have the

exemption applied to their real estate and tangible personal property, other than registered vehicles

or trailers, in the communities where they reside as prescribed in those sections. However, if there

is not sufficient property to exhaust the exemption, the balance of the exemption shall be applied

to the excise tax on his or her motor vehicle or trailer.

(b) The amount of exemption shall not exceed the amount of excise levied on those vehicles

owned by the person.

44-34-6. Fire districts.

The provisions of this chapter shall apply in all respects in the case of taxes assessed upon

motor vehicles by any fire district. Effective with the year 2000 tax roll based upon values of

December 31, 1999, the authority of fire districts as authorized by general or public law to levy

excise taxes on motor vehicles is eliminated and each district shall be reimbursed for one hundred

percent (100%) of current year lost revenues through fiscal year 2010 based upon what the levy net

of personal exemptions would otherwise have been. That reimbursement shall be based upon

submission of information to the department of revenue on the dates specified in § 44-34.1-2, and

reimbursements shall be paid on the dates specified in that section. Future year reimbursements

through fiscal year 2010 shall be based upon the year 2000 tax roll and values of December 31,

1999, and indexed by applying the annual change in the December Consumer Price Index — All

Urban Consumers (CPI-U). For fiscal year 2011 and thereafter the state shall not reimburse fire

districts pursuant to this chapter. Provided, for fiscal year 2011, and thereafter, the authority of fire

districts to levy excise taxes shall be deemed restored. The year 2010 tax roll shall be based upon

values of December 31, 2009, with corresponding adjustments made for each subsequent year

based on the valuation of vehicles as of December 31 of the year preceding the tax year.

44-34-7. Severability.

If any provision of this chapter is held invalid, the remainder of this chapter and the

application of its provisions shall not be affected by this invalidity.

44-34-8. Appeal procedure.

(a)(1) Any taxpayer aggrieved by a valuation may appeal that valuation to the tax assessor

within forty-five (45) days of notice of valuation. When the valuation of the vehicle has been made

by the assessor, the assessor shall render a decision within ten (10) days of the filing of the appeal.

When the valuation of the vehicle has been made by the Rhode Island vehicle valuation

commission, the assessor shall forward the appeal on the form provided by the commission to the

Rhode Island vehicle valuation commission within ten (10) days. The commission shall transmit

its decision to the tax assessor within twenty (20) days of the receipt of the appeal.

(2) The tax assessor shall notify the aggrieved taxpayer, in writing, of the commission

decision within ten (10) days of the receipt of the commission decision.

(b) Within thirty (30) days of the notification of the decision of the tax assessor or the

commission, an aggrieved taxpayer may appeal the decision to the district court for the judicial

division within which the city or town is located.

the state supreme court by writ of certiorari. The petition for a writ of certiorari shall state the errors

claimed. Upon the filing of the petition with the clerk of the supreme court, the supreme court may,

if it sees fit, issue its writ of certiorari to the district court to certify to the supreme court the record

of the proceeding under review, or so much of this as was submitted to the district court by the

parties, together with any additional record of the proceedings in the district court.

44-34-9. Valuation of motor vehicles.

For the purpose of the imposition of an excise tax upon motor vehicles, the tax assessor

shall determine the value of each motor vehicle in accordance with the following procedures:

(1) Each vehicle and trailer of the same make, type, model, and year of manufacture in this

state shall be deemed to have one uniform statewide value to be utilized in each city and town,

except in those instances where no uniform value is established pursuant to the rules of the vehicle

value commission § 44-34-11 or where a value is established by the assessor pursuant to § 44-34-

(2) The uniform value of each type of vehicle and trailer shall be determined by the Rhode

Island vehicle value commission or in accordance with the rules of the vehicle value commission.

(3) The value of each vehicle or trailer or each type vehicle or trailer not established by the

Rhode Island vehicle value commission shall be determined by the assessor of the city or town in

which the vehicle or trailer is registered. In making the determination, a uniform flat value for the

vehicles in the municipality may be utilized by the assessor.

44-34-10 — 44-34-10.2. Repealed.

44-34-11. Rhode Island vehicle value commission.

(a) There is hereby authorized, created, and established the “Rhode Island vehicle value

commission” whose function it is to establish presumptive values of vehicles and trailers subject to

the excise tax.

(b) The commission shall consist of the following seven (7) members as follows:

(1) The director of the department of revenue or his/her designee from the department of

revenue;

(2) Five (5) local tax officials named by the governor, at least one of whom shall be from

a city or town under ten thousand (10,000) population and at least one of whom is from a city or

town over fifty thousand (50,000) population. In making these appointments, the governor shall

give due consideration to the recommendations submitted by the President of the Rhode Island

League of Cities and Towns and each appointment shall be subject to the advice and consent of the

senate; and

(3) One motor vehicle dealer appointed by the governor upon giving due consideration to

the recommendation of the director of revenue and subject to the advice and consent of the senate.

(4) All members shall serve for a term of three (3) years.

(5) Current legislative appointees shall cease to be members of the commission upon the

effective date of this act. Non-legislative appointees to the commission may serve out their terms

whereupon their successors shall be appointed in accordance with this act. No one shall be eligible

for appointment to the commission unless he or she is a resident of this state.

(6) Public members of the commission shall be removable by the governor pursuant to §

36-1-7 for cause only, and removal solely for partisan or personal reasons unrelated to capacity or

fitness for the office shall be unlawful.

(7) The governor shall appoint a chairperson from the commission’s members. The

commission shall elect from among its members other officers as it may deem appropriate.

trailers subject to the excise tax in the following manner:

(1) Not earlier than September 30 and not later than December 31 of each year, the

commission shall by rule adopt a methodology for determining the presumptive value of vehicles

and trailers subject to the excise tax that shall give consideration to the following factors:

(i) The average retail price of similar vehicles of the same make, model, type, and year of

manufacture as reported by motor vehicle dealers or by official used car guides, such as that of the

National Automobile Dealers Association for New England. Where regional guides are not

available, the commission shall use other publications deemed appropriate; and

(ii) Other information concerning the average retail prices for make, model, type, and year

of manufacture of motor vehicles as the director and the Rhode Island vehicle value commission

may deem appropriate to determine fair values.

(iii) Notwithstanding the foregoing, the presumptive value of vehicles and trailers subject

to the excise tax shall not exceed the following percentage of clean retail value for those vehicles

reported by the National Automobile Dealers Association Official Used Car Guide New England

Edition:

FISCAL YEAR PERCENTAGE

2018 95%

2019 90%

2020 85%

2021 80%

2022 75%

2023 70%

In the event that no such clean retail value is reported, the presumptive value shall not

exceed the above percentages of the following:

(A) Manufacturer’s suggested retail price (MSRP) for new model year vehicles as reported

by the National Automobile Dealers Association Guides; or

(B) Average retail value for those vehicles reported by the National Automobile Dealers

Association Official Used Car Guide National Edition and Motorcycle/Snowmobile/ATV/Personal

Watercraft Appraisal Guide; or

Dealers Recreational Vehicle Appraisal Guide; or

(D) Low value for those vehicles reported in the National Automobile Dealers Association

Classic, Collectible, Exotic and Muscle Car Appraisal Guide & Directory.

(2) On or before February 1 of each year, it shall adopt a list of values for vehicles and

trailers of the same make, model, type, and year of manufacture as of the preceding December 31

in accordance with the methodology adopted between September 30 and December 31; the list shall

be subject to a public hearing at least five (5) business days prior to the date of its adoption.

(3) Nothing in this section shall be deemed to require the commission to determine the

presumptive value of vehicles and trailers that are unique, to which special equipment has been

added or to which special modifications have been made, or for which adequate information is not

available from the sources referenced in subdivision (1) of this subsection; provided, that the

commission may consider those factors in its lists or regulations.

(4) The commission shall annually provide the list of presumptive values of vehicles and

trailers to each tax assessor on or before February 15 of each year.

(d) The commission shall adopt rules governing its organization and the conduct of its

business; prior to the adoption of the rules, the chair shall have the power to call meetings, and a

simple majority of the members of the commission, as provided for in subsection (b) of this section,

is necessary for a quorum, which quorum by majority vote shall have the power to conduct business

in the name of the commission. The commission may adopt rules and elect from among its members

such other officers as it deems necessary.

(e) The commission shall have the power to contract for professional services that it deems

necessary for the development of the methodology for determining presumptive values; for

calculating presumptive values according to the methodology; and for preparing the list of

presumptive values in a form and format that is generally usable by cities and towns in their

preparation of tax bills. The commission shall also have the power to incur reasonable expenses in

the conduct of its business as required by this chapter and to authorize payments for the expenses.

(f) Commission members shall receive no compensation for the performance of their duties

but may be reimbursed for their reasonable expenses incurred in carrying out such duties.

(g) The commission shall respond to petitions of appeal by local boards of review in

accordance with the provisions of § 44-34-9.

(h) The commission shall establish, by rule, procedures for adopting an annual budget and

for administering its finances. After July 1, 1986, one-half (1/2) of the cost of the commission’s

operations shall be borne by the state and one-half (1/2) shall be borne by cities and towns within

the state, with the city and town share distributed among cities and towns on a per capita basis.

(i) Within ninety (90) days after the end of each fiscal year, the commission shall approve

and submit an annual report to the governor, the speaker of the house of representatives, the

president of the senate, and the secretary of state of its activities during that fiscal year. The report

shall provide: an operating statement summarizing meetings or hearings held, meeting minutes if

requested, subjects addressed, decisions rendered, rules or regulations promulgated, studies

conducted, policies and plans developed, approved, or modified, and programs administered or

initiated; a consolidated financial statement of all funds received and expended including the source

of the funds, a listing of any staff supported by these funds, and a summary of any clerical,

administrative or technical support received; a summary of performance during the previous fiscal

year including accomplishments, shortcomings and remedies; a synopsis of hearings, complaints,

suspensions, or other legal matters related to the authority of the commission; a summary of any

training courses held pursuant to this subsection, a briefing on anticipated activities in the upcoming

fiscal year; and findings and recommendations for improvements. The report shall be posted

electronically on the general assembly and the secretary of state’s websites as prescribed in § 42-

20-8.2. The director of the department of revenue shall be responsible for the enforcement of this

provision.

44-34-12. Cooperation of state agencies.

The department of revenue shall provide space and secretarial and clerical services to the

Rhode Island vehicle value commission without charge to the commission. The department of

transportation, and the department of revenue shall provide, consistent with law, information that

is in their possession, which the commission determines to be useful or necessary in the conduct of

its responsibilities.

44-34-13. Tax exemption on vehicles adapted for persons who are disabled.

(a) The city or town councils of the various cities and towns may, by ordinance, exempt

from taxation up to fifty percent (50%) of the value of any motor vehicle that is necessary to

transport a family member with a disability or where the vehicle has been specially adapted to meet

the specific needs of the person with a disability. This exemption shall apply to not more than one

motor vehicle owned and registered for personal, noncommercial use. After the assessors have

allowed an exemption under this section, no further evidence of the existence of the facts required

by this section shall be required in any subsequent year in the city or town in which the exemption

has been allowed.

(b) For the purpose of this section:

(1) “Special adaptations” includes, but is not limited to: wheelchair lifts; wheelchair

carriers; wheelchair ramps; wheelchair securements; hand controls; steering devices; extensions,

relocations, and crossovers of operator controls; power assisted controls; raised tops or dropped

floors; raised entry doors; or alternative signaling devices to auditory signals.

(2) “Specially adapted motor vehicle” means a motor vehicle with special adaptations;

provided, that the cost of the special adaptations meets or exceeds seven percent (7%) of the value

of the motor vehicle; provided, further, that the town of Johnston may, by ordinance, provide for

an exemption when the cost of special adaptations is not less than two percent (2%).

44-34-14. Exemption for certain vehicles in the town of Warren.

The town of Warren may by ordinance exempt from the tax imposed by this chapter in an

amount not to exceed one hundred dollars ($100) motor vehicles registered in Warren primarily

fueled by:

(1) Gas produced from biomass, with “biomass” meaning any organic material other than

oil, natural gas and coal (including lignite) or any product thereof;

(2) Liquid, gaseous or solid synthetic fuels, produced from coal;

(3) Coke or coke gas; or

(4) Electric motor drawing current from rechargeable batteries, fuel cells or other portable

sources of electrical current.

SECTION 4. Sections 44-34.1-1 and 44-34.1-3 of the General Laws in Chapter 44-34.1

entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998" are hereby repealed.

44-34.1-1. Excise tax phase-out.

(a)(1) Notwithstanding the provisions of chapter 34 of this title or any other provisions to

the contrary, the motor vehicle and trailer excise tax established by § 44-34-1 may be phased out.

The phase-out shall apply to all motor vehicles and trailers, including leased vehicles.

(2) Lessors of vehicles that pay excise taxes directly to municipalities shall provide lessees,

at the time of entering into the lease agreement, an estimate of annual excise taxes payable

throughout the term of the lease. In the event the actual excise tax is less than the estimated excise

tax, the lessor shall annually rebate to the lessee the difference between the actual excise tax and

the estimated excise tax.

(b) Pursuant to the provisions of this section, all motor vehicles shall be assessed a value

by the vehicle value commission. That value shall be assessed according to the provisions of § 44-

34-11(c)(1) and in accordance with the terms as defined in subsection (d) of this section; provided,

however, that the maximum taxable value percentage applicable to model year values as of

December 31, 1997, shall continue to be applicable in future year valuations aged by one year in

each succeeding year.

(c)(1) The motor vehicle excise tax phase-out shall commence with the excise tax bills

mailed to taxpayers for the fiscal year 2000. The phase-out, beyond fiscal year 2003, shall be

subject to annual review and appropriation by the general assembly. The tax assessors of the various

cities and towns and fire districts shall reduce the average retail value of each vehicle assessed by

using the prorated exemptions from the following table:

Local Fiscal Year Exempt from value Local Exemption State fiscal year Reimbursement

fiscal year 1999 0 $1,500

fiscal year 2000 $1,500 $2,500

fiscal year 2001 $2,500 $3,500

fiscal year 2002 $3,500 $4,500

fiscal years 2003, 2004 and 2005 $4,500 $4,500

for fiscal year 2006 and $5,000 $5,000

for fiscal year 2007 $6,000 $6,000

for fiscal years 2008, 2009 and 2010 the exemption and the state fiscal year reimbursement

shall be increased, at a minimum, to the maximum amount to the nearest two hundred and fifty

dollar ($250) increment within the allocation of one and twenty-two hundredths percent (l.22%) of

net terminal income derived from video lottery games pursuant to the provisions of § 42-61-15,

and in no event shall the exemption in any fiscal year be less than the prior fiscal year.

(i) For fiscal year 2011 through fiscal year 2017, the exemption shall be five hundred

dollars ($500). Cities and towns may provide an additional exemption; provided, however, any

such additional exemption shall not be subject to reimbursement.

(ii) For fiscal year 2018, cities, towns, and fire districts shall provide an exemption equal

to the greater of one thousand dollars ($1,000) or the exemption in effect in fiscal year 2017.

(iii) For fiscal year 2019, cities, towns, and fire districts shall provide an exemption equal

to the greater of two thousand dollars ($2,000) or the exemption in effect in fiscal year 2017.

(iv) For fiscal year 2020, cities, towns, and fire districts shall provide an exemption equal

to the greater of three thousand dollars ($3,000) or the exemption in effect in fiscal year 2017.

(v) For fiscal year 2021, cities, towns, and fire districts shall provide an exemption equal

to the greater of four thousand dollars ($4,000) or the exemption in effect in fiscal year 2017.

(vi) For fiscal year 2022, cities, towns, and fire districts shall provide an exemption equal

to the greater of five thousand dollars ($5,000) or the exemption in effect in fiscal year 2017.

(vii) For fiscal year 2023, cities, towns, and fire districts shall provide an exemption equal

to the greater of six thousand dollars ($6,000) or the exemption in effect in fiscal year 2017.

(viii) For fiscal year 2024 and thereafter, no tax shall be levied.

(2) The excise tax phase-out shall provide levels of assessed value reductions until the tax

is eliminated or reduced as provided in this chapter.

(3) Current exemptions shall remain in effect as provided in this chapter.

(4) The excise tax rates and ratios of assessment shall be maintained at a level identical to

the level in effect for fiscal year 1998 for each city, town, and fire district; provided, in the town of

Johnston, the excise tax rate and ratios of assessment shall be maintained at a level identical to the

level in effect for fiscal year 1999 levels and the levy of a city, town, or fire district shall be limited

to the lesser of the maximum taxable value or net assessed value for purposes of collecting the tax

in any given year. Provided, however, for fiscal year 2011 through fiscal year 2017, the rates and

ratios of assessment may be less than but not more than the rates described in this subsection (4).

(5) For fiscal year 2018 and thereafter, the excise tax rate applied by a city, town, or fire

district, shall not exceed the rate in effect in fiscal year 2017 and shall not exceed the rate set forth

below:

Fiscal Year Tax Rate (Per $1,000 of Value)

2018 $60.00

2019 $50.00

2020 $35.00

2021 $35.00

2022 $30.00

2023 $20.00

(6) In no event shall a taxpayer be billed more than the prior year for a vehicle owned up

to the same number of days unless an increased bill is the result of no longer being eligible for a

local tax exemption.

(d) Definitions.(1) “Maximum taxable value” means the value of vehicles as prescribed by

§ 44-34-11 reduced by the percentage of assessed value applicable to model year values as

determined by the Rhode Island vehicle value commission as of December 31, 1997, for the

vehicles valued by the commission as of December 31, 1997. For all vehicle value types not valued

by the Rhode Island vehicle value commission as of December 31, 1997, the maximum taxable

value shall be the latest value determined by a local assessor from an appropriate pricing guide,

multiplied by the ratio of assessment used by that city, town, or fire district for a particular model

year as of December 31, 1997. The maximum taxable value shall be determined in such a manner

as to incorporate the application of the percentage corresponding with the appropriate fiscal year

as specified in § 44-34-11(c)(1)(iii).

(2) “Net assessed value” means the motor vehicle values as determined in accordance with

§ 44-34-11 less all personal exemptions allowed by cities, towns, fire districts, and the state of

Rhode Island exemption value as provided for in subsection (c)(1) of this section.

(e) If any provision of this chapter shall be held invalid by any court of competent

jurisdiction, the remainder of this chapter and the applications of the provisions hereof shall not be

effected thereby.

44-34.1-3. Permanent oversight commission.

(a) There is created a permanent oversight commission on inventory taxes and automobile

excise taxes. The commission shall consist of the following members:

(1) Chairperson of house finance committee, or designee;

(2) Chairperson of senate finance committee, or designee;

(3) Chairperson of the Rhode Island vehicle value commission;

(4) Three (3) members of the Rhode Island Assessors Association;

(5) Director of department of revenue, or designee;

(6) Chief of the division of property valuation and municipal finance, or designee;

(7) The president of the Rhode Island League of Cities and Towns, or designee;

(8) The administrator of the Rhode Island division of motor vehicles, or designee;

(9) The mayor of the city of Providence, or designee.

(b) The purpose of the commission shall be to study and evaluate the phase-out of the

automobile excise tax and to establish procedures when necessary to facilitate the phase-out of the

tax by July 1, 2005.

(d) The commission shall meet no less than two (2) times per year at the call of the

chairperson or upon the request of at least three (3) of its members.

(e) The members shall receive no compensation for their services. All departments and

agencies of the state shall furnish advice and information, documentary or otherwise, to the

commission and its agents as is deemed necessary or desirable by the commission to facilitate the

purposes of the commission.

SECTION 5. Section 31-2-13 of the General Laws in Chapter 31-2 entitled "Division of

Motor Vehicles" is hereby repealed.

31-2-13. Report to tax assessors of vehicles registered.

(a) As soon as practical after January 1 in every year, the division of motor vehicles shall

furnish, without charge, to the tax assessors of each city or town in this state, a statement of the

motor vehicles registered from that city or town on and after January 1 and through the thirty-first

day of December of the previous year and the inclusive dates of their registration within this period.

(b) The provisions of this section shall apply in all respects in the case of taxes assessed

upon motor vehicles by any fire district.

SECTION 6. This act shall take effect on July 1, 2023.

========

LC002278

========