2012 -- H 7253

=======

LC00683

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO TAXATION -- MOTOR VEHICLE TAX ELIMINATION

     Introduced By: Representatives Silva, Serpa, and Tarro

     Date Introduced: January 25, 2012

     Referred To: House Municipal Government

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 44-34.1-1 of the General Laws in Chapter 44-34.1 entitled "Motor

1-2

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

1-3

     44-34.1-1. Excise tax phase-out. -- (a) (1) Notwithstanding the provisions of chapter 34

1-4

of this title or any other provisions to the contrary, the motor vehicle and trailer excise tax

1-5

established by section 44-34-1 may be phased out. The phase-out shall apply to all motor vehicles

1-6

and trailers, including leased vehicles. (2) Lessors of vehicles that pay excise taxes directly to

1-7

municipalities shall provide lessees, at the time of entering into the lease agreement, an estimate

1-8

of annual excise taxes payable throughout the term of the lease. In the event the actual excise tax

1-9

is less than the estimated excise tax, the lessor shall annually rebate to the lessee the difference

1-10

between the actual excise tax and the estimated excise tax. (b) Pursuant to the provisions of this

1-11

section, all motor vehicles shall be assessed a value by the vehicle value commission. That value

1-12

shall be assessed according to the provisions of section 44-34-11(c)(1) and in accordance with the

1-13

terms as defined in subsection (d) of this section; provided, however, that the maximum taxable

1-14

value percentage applicable to model year values as of December 31, 1997, shall continue to be

1-15

applicable in future year valuations aged by one year in each succeeding year. (c) (1) The motor

1-16

vehicle excise tax phase-out shall commence with the excise tax bills mailed to taxpayers for the

1-17

fiscal year 2000. The phase-out, beyond fiscal year 2003, shall be subject to annual review and

1-18

appropriation by the general assembly. The tax assessors of the various cities and towns and fire

1-19

districts shall reduce the average retail value of each vehicle assessed by using the prorated

1-20

exemptions from the following table:

2-1

      Local Fiscal Year State fiscal year

2-2

      Exempt from value Local Exemption Reimbursement

2-3

      fiscal year 1999 0 $1,500

2-4

      fiscal year 2000 $1,500 $2,500

2-5

      fiscal year 2001 $2,500 $3,500

2-6

      fiscal year 2002 $3,500 $4,500

2-7

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

2-8

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

2-9

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

2-10

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

2-11

reimbursement shall be increased, at a minimum, to the maximum amount to the nearest two

2-12

hundred and fifty dollar ($250) increment within the allocation of one and twenty-two hundredths

2-13

percent (l.22%) of net terminal income derived from video lottery games pursuant to the

2-14

provisions of section 42-61-15, and in no event shall the exemption in any fiscal year be less than

2-15

the prior fiscal year. for fiscal year 2011 and thereafter, the exemption shall be five hundred

2-16

dollars ($500); provided, however, that the fiscal year 2012 and thereafter, the exemption shall be

2-17

six thousand dollars ($6,000) for residents of distressed communities as defined in section 45-13-

2-18

12. Cities and towns may provide an additional exemption; provided, however, any such

2-19

additional exemption shall not be subject to reimbursement. (2) The excise tax phase-out shall

2-20

provide levels of assessed value reductions until the tax is eliminated or reduced as provided in

2-21

this chapter. (3) Current exemptions shall remain in effect as provided in this chapter. (4) The

2-22

excise tax rates and ratios of assessment shall be maintained at a level identical to the level in

2-23

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

2-24

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

2-25

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

2-26

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

2-27

any given year. Provided, however, for fiscal year 2011 and thereafter, the rates and ratios of

2-28

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

2-29

Definitions. (1) "Maximum taxable value" means the value of vehicles as prescribed by section

2-30

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

2-31

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

2-32

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

2-33

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

2-34

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

3-1

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

3-2

model year as of December 31, 1997. (2) "Net assessed value" means the motor vehicle values as

3-3

determined in accordance with section 44-34-11 less all personal exemptions allowed by cities,

3-4

towns, fire districts, and the state of Rhode Island exemption value as provided for in section 44-

3-5

34.1-1(c)(1). (e) If any provision of this chapter shall be held invalid by any court of competent

3-6

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

3-7

be effected thereby.

3-8

     SECTION 2. This act shall take effect upon passage.

=======

LC00683

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- MOTOR VEHICLE TAX ELIMINATION

***

4-1

     This act would provide a six thousand dollars ($6,000) exemption to the motor vehicle

4-2

excise tax for residents of distressed communities.

4-3

     This act would take effect upon passage.

=======

LC00683

=======