2012 -- H 7224

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LC00799

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TAXATION -- EXCISE ON MOTOR VEHICLES AND TRAILERS

     Introduced By: Representatives Azzinaro, Corvese, DaSilva, Guthrie, and Blazejewski

     Date Introduced: January 24, 2012

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-34-2, 44-34-3, 44-34-8, 44-34-9 and 44-34-11 of the General

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Laws in Chapter 44-34 entitled "Excise on Motor Vehicles and Trailers" are hereby amended to

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read as follows:

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

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Exemptions from tax. -- (a) Except as provided in this section, the tax assessors of each city and

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town shall assess and levy in each calendar year on every vehicle and trailer registered under

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chapter 3 of title 31, for the privilege of the registration, an excise measured by its value, as

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subsequently defined and determined. For the purpose of this excise, the uniform value of each

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vehicle shall be determined in accordance with the regulations of the vehicle value commission

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section 44-34-11. Any vehicle which is more than twenty-five (25) years old, whether or not the

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vehicle is an antique motor car as defined in section 31-1-3(a), shall be deemed to possess an

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average retail value of five hundred dollars ($500). Any vehicle more than twenty-five (25) years

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old on June 16, 1987, whether or not the vehicle is an antique motor car as defined in section 31-

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1-3(a), shall be deemed to have an average retail value of five hundred dollars ($500) or its actual

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retail value whichever is less. The minimum excise tax on any vehicle, if registered to the same

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owner for a full year or portion of the year, shall not be less than five dollars ($5.00) unless the

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registration is transferred to one or more additional vehicles or trailers, in which case the

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minimum or combined excise taxes shall not be less than five dollars ($5.00). Beginning in fiscal

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year 2001, the assessor may, but is not required to, issue minimum tax bills as authorized by this

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section or any general or public law. Beginning in fiscal year 2002 and thereafter, the assessor

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shall not issue minimum tax bills, notwithstanding any general or public law to the contrary. The

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assessor may waive the excise tax on any vehicle where the annual levy would be less than five

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dollars ($5.00). The state shall not provide reimbursement for any waiver.

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

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

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proration.

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      (c) The excise levy on every vehicle and trailer registered under chapter 3 of title 31

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

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number of days in the calendar year of proration.

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

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

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

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for the ensuing year.

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      (e) "Year of manufacture" as used in this section means the year used by the

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

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the model of the vehicle or trailer. Where the presumptive price of a vehicle or trailer is not

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readily obtainable, or special equipment is installed on the vehicle or trailer, the tax assessor shall

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

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

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

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

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

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

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

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

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

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facts of the case.

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

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

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

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section 44-3-3(1) -- (15), or to vehicles assessed and taxed under section 44-13-13, or those

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owned by the United States government. Farm vehicles shall be exempt to the extent prescribed

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in section 44-5-42.

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     44-34-3. Assessment roll -- Rate -- Payment -- Penalty upon non-payment. -- (a) The

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assessor, on the basis of a list of uniform values for motor vehicles prepared by the Rhode Island

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vehicle value commission pursuant to section 44-34-8, shall make a list containing the value of

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every vehicle and trailer in the city or town which is subject to the provisions of section 44-34-2,

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

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

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in each city or town determined according to the provisions of section 44-34-11; provided, that

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every vehicle and trailer in the city of Pawtucket shall be assessed in accordance with sections 44-

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5-20.1 and 44-5-20.2; provided, further, that motor vehicles owned, leased, or utilized by rental

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companies, as those terms are defined in section 31-34.1-1, shall not be valued for excise tax

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purposes at an amount greater than the National Automobile Dealers Association average retail

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value Kelley Blue Book values online edition for new vehicles for the year and vehicle model in

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question.

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     (1) Provided, however, that relative to the manufacture year of a vehicle, the excise tax

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paid on the vehicle or trailer shall be on one hundred percent (100%) of the vehicle’s presumptive

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value. Thereafter, in the sixth (6th) year, the vehicle shall be taxed at a rate of ninety-five percent

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(95%) of the presumptive value, and shall be reduced in each subsequent year by five percent

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(5%) until years fifteen (15) through nineteen (19), at which time the vehicle shall be taxed at a

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rate of fifty percent (50%) of the presumptive value. Thereafter in year twenty (20), the vehicle

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shall be taxed at a rate of forty-five percent (45%) of the presumptive value, and shall be reduced

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five percent (5%) per year in each subsequent year until years twenty-three (23) and twenty-four

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(24), in which the vehicle shall be taxed at a rate of thirty percent (30%) of the presumptive value.

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

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established by the assessors for all other property except manufacturer's machinery and

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equipment in accordance with section 44-5-22 and the resulting tax roll shall be certified by the

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assessors to the city or town clerk, treasurer, or tax collector, as the case may be, not later than

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June 15 next succeeding. Prior to the resulting tax roll being certified to the Pawtucket city clerk,

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the excise levy shall be applied to the excise assessment roll in accordance with the property tax

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classification described in sections 44-5-20.3 and 44-5-20.5. In the city of Woonsocket, the excise

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tax levy shall be applied to the excise assessment roll at a rate that will produce no more than

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nineteen percent (19%) of the total tax levy as prescribed in section 44-5-11.6. In the town of

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Lincoln, the excise tax levy shall be applied to the excise assessment roll at a rate that produces

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an amount equal to no more than seventeen percent (17%) of the total real estate tax levy.

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      (c) If any vehicle or trailer liable to taxation in any city or town has been omitted from

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

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

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than December 31 next succeeding.

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

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

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that have registered vehicles or trailers during the calendar year of proration. The bills shall be

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paid in accordance with section 44-5-7 at the same time and on the same schedule as property tax

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bills. Failure to pay the excise at the appropriated time shall bring about a penalty of eighteen

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percent (18%) per annum, or, in the case of the city of Cranston, a penalty of twelve percent

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(12%) per annum which applies on the date of the delinquency or, for any city or town fiscal year

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commencing between January 1, 1980, and December 31, 1980, after approval by the proper local

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authority, at the same rate of interest as that which is applied to delinquent property taxes in the

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taxing jurisdiction.

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

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

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

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as prescribed in section 44-34-2.

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     44-34-8. Appeal procedure. -- (a) (1) Any taxpayer aggrieved by a valuation may appeal

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that valuation to the tax assessor within thirty (30) days of notice of valuation. When the

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valuation of the vehicle has been made by the assessor, the assessor shall render a decision within

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ten (10) twenty (20) days of the filing of the appeal. When the valuation of the vehicle has been

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made by the Rhode Island vehicle valuation commission, the assessor shall forward the appeal on

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the form provided by the commission to the Rhode Island vehicle valuation commission within

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ten (10) days. The commission shall transmit its decision to the tax assessor within twenty (20)

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days of the receipt of the appeal.

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     (2) An aggrieved party who files a notice of appeal may present evidence in the form of a

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notarized affidavit, signed by a vehicle appraiser licensed by the state of Rhode Island, as to the

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appraiser’s opinion as to the actual value of the vehicle inspected. The affidavit shall identify the

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vehicle by year, make, model and vehicle identification number, and shall set forth all criteria

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used in which to appraise the vehicle. It shall be the aggrieved parities’ responsibility to pay for

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the appraisal of the vehicle.

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      (2)(3) The tax assessor shall notify the aggrieved taxpayer, by writing, of the

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

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

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

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division within which the city or town is located.

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      (c) A party aggrieved by a final order of the district court may seek review of this order

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

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

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

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

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

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court.

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     44-34-9. Valuation of motor vehicles. -- For the purpose of the imposition of an excise

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tax upon motor vehicles, the tax assessor shall determine the value of each motor vehicle in

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accordance with the following procedures:

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

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

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

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vehicle value commission section 44-34-11 or where a value is established by the assessor

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pursuant to section 44-34-2.

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

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

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commission.

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

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

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town in which the vehicle or trailer is registered. In making the determination, a uniform flat

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value for the vehicles in the municipality may be utilized by the assessor.

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     (4) Pursuant to subdivision 44-34-8(a)(2), an aggrieved party may submit other

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appropriate evidence of the actual valuation of their vehicle by a motor vehicle appraiser licensed

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by the state of Rhode Island.

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     44-34-11. Rhode Island vehicle value commission. -- (a) There is hereby authorized,

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created, and established the "Rhode Island vehicle value commission" whose function it is to

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establish presumptive values of vehicles and trailers subject to the excise tax.

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

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

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revenue, who shall serve as chair;

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

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

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

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

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

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the senate;

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      (3) And one motor vehicle dealer appointed by the governor upon giving due

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consideration to the recommendation of the director of revenue and subject to the advice and

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consent of the senate.

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

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

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

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

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

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

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

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capacity or fitness for the office shall be unlawful.

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

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

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

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commission shall annually determine the presumptive values of vehicles and trailers subject to

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the excise tax using year of manufacture, make, model and type, which values shall be derived

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using Kelley Blue Book values for a vehicle in “good” condition, and a “private-party sale,” as

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described in the Kelley Blue Book value online editions, provided that if the commission

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determines that any particular values derived from the Kelley Blue Book value online editions

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appears inflated and unreliable, then the commission may determine the presumptive values of

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vehicles and trailers in the following manner:

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

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

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

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

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

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

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

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

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

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commission may deem appropriate to determine fair values.

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     (iii) Pursuant to subdivision 44-34-8(a)(2), an aggrieved party may submit other

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appropriate evidence of the actual valuation of their vehicle by a motor vehicle appraiser licensed

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by the state of Rhode Island.

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

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

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

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

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

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

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added or to which special modifications have been made, or for which adequate information is

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not available from the sources referenced in subdivision (1) of this subsection; provided, that the

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commission may consider those factors in its lists or regulations.

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

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

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

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

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

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

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conduct business in the name of the commission. The commission may adopt rules and elect from

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among its members such other officers as it deems necessary.

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

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deems necessary for the development of the methodology for determining presumptive values, for

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

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

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

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

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expenses.

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

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

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

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

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

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

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commission's operations shall be borne by the state and one-half ( 1/2) shall be borne by cities

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and towns within the state, with the city and town share distributed among cities and towns on a

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per capita basis.

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

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

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

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

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minutes if requested, subjects addressed, decisions rendered, rules or regulations promulgated,

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

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administered or initiated; a consolidated financial statement of all funds received and expended

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

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of any clerical, administrative or technical support received; a summary of performance during

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the previous fiscal year including accomplishments, shortcomings and remedies; a synopsis of

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hearings, complaints, suspensions, or other legal matters related to the authority of the

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commission; a summary of any training courses held pursuant to this subsection, a briefing on

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anticipated activities in the upcoming fiscal year; and findings and recommendations for

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improvements. The report shall be posted electronically on the general assembly and the secretary

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of state's websites as prescribed in section 42-20-8.2. The director of the department of revenue

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shall be responsible for the enforcement of this provision.

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     SECTION 2. This act shall take effect upon passage.

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LC00799

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- EXCISE ON MOTOR VEHICLES AND TRAILERS

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     This act would revise the motor vehicle excise tax statute including determining the

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presumptive value of a vehicle by using the “Kelley Blue Book” value for a vehicle in “good”

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condition, allowing an aggrieved party to file an appeal by presenting evidence from a licensed

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vehicle appraiser and calculating the amount of excise tax to be paid based on the vehicle’s age

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and certain percentages of the vehicle’s presumptive value.

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     This act would take effect upon passage.

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LC00799

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