2024 -- S 2854

========

LC005719

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

____________

A N   A C T

RELATING TO TAXATION -- MOTOR VEHICLE AND TRAILER EXCISE TAX

ELIMINATION ACT OF 1998

     Introduced By: Senator Robert Britto

     Date Introduced: March 22, 2024

     Referred To: Senate Finance

     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 § 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

LC005719 - Page 2 of 5

     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

LC005719 - Page 3 of 5

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.

========

LC005719

========

LC005719 - Page 4 of 5

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- MOTOR VEHICLE AND TRAILER EXCISE TAX

ELIMINATION ACT OF 1998

***

     This act would repeal the provision setting a different timeline for reimbursement of East

Providence for the FY 2025, and would bring East Providence in line with other municipalities in

the timing of reimbursements.

     This act would take effect upon passage.

========

LC005719

========

LC005719 - Page 5 of 5