| Chapter 400 |
| 2024 -- H 8226 Enacted 06/26/2024 |
| A N A C T |
| RELATING TO TAXATION -- MOTOR VEHICLE AND TRAILER EXCISE TAX ELIMINATION ACT OF 1998 |
Introduced By: Representatives Boylan, Kazarian, Henries, and Dawson |
| Date Introduced: May 01, 2024 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. 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 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 of the excise tax. When the tax is phased out, cities, towns, and |
| fire districts shall receive a permanent distribution of sales tax revenue pursuant to ยง 44-18-18 in |
| an amount equal to any lost revenue resulting from the excise tax elimination. |
| (b)(1) 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 |
| (2) In fiscal year 2024, funds shall be distributed to the cities, towns, and fire districts as |
| follows: |
| (i) On August 1, 2023, twenty-five percent (25%) of the funds. |
| (ii) On November 1, 2023, twenty-five percent (25%) of the funds. |
| (iii) On February 1, 2024, twenty-five percent (25%) of the funds. |
| (iv) On May 1, 2024, twenty-five percent (25%) of the funds. |
| The funds shall be distributed to each city, town, and fire district in the same proportion as |
| distributed in fiscal year 2023. |
| (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. |
| (4) On any of the payment dates specified in subsections (b)(2)(i) through (b)(2)(iv) or |
| (b)(3) of this section, 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. |
| (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. |
| (d) 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, 2024, and every August 1 thereafter; |
| twenty-five percent (25%) shall be distributed on November 1, 2024, and every November 1 |
| thereafter; twenty-five percent (25%) shall be distributed on February 1, 2025, and every February |
| 1 thereafter; and twenty-five percent (25%) shall be distributed on May 1, 2025, and every May 1 |
| thereafter. |
| (e) For the city of East Providence, in fiscal years 2025 and thereafter, twenty-five percent |
| (25%) shall be distributed on November 1, 2024, and every November 1 thereafter, twenty-five |
| percent (25%) shall be distributed on February 1, 2025, and every February 1 thereafter; twenty- |
| five percent (25%) shall be distributed on May 1, 2025, and every May 1 thereafter; and twenty- |
| five percent (25%) of the funds shall be distributed on August 1, 2025, and every August 1 |
| thereafter. |
| SECTION 2. This act shall take effect upon passage. |
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| LC006026 |
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