2012 -- S 2123

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LC00468

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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 -- ELIMINATING EXCISE TAX FOR QUALIFIED ELECTRIC

PLUG-IN DRIVE VEHICLES

     Introduced By: Senators Miller, Sosnowski, DiPalma, Felag, and Bates

     Date Introduced: January 18, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-34 of the General Laws entitled "Excise on Motor Vehicles and

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Trailers" is hereby amended by adding thereto the following section:

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     44-34-15. Exemption for plug-in electric drive vehicles. – (a) For purposes of sections

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44-34-15 and 44-18-40.2 the following words shall have the meanings:

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     (1) “Excise tax” or “sales tax” means the tax imposed by this title.

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     (2) “Qualified plug-in electric drive vehicle” means a four-wheeled motor vehicle that:

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     (i) Is made by a manufacturer;

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     (ii) Is manufactured primarily for use on public streets, roads, and highways;

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     (iii) Is acquired for use or lease by the taxpayer and not for resale;

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     (iv) Is rated at not more than eight thousand, five hundred pounds (8,500 lbs.) unloaded

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gross vehicle weight;

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     (v) Has a maximum speed capability of at least fifty-five (55) miles per hour;

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     (vi) Is propelled to a significant extent by an electric motor that draws electricity from a

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battery that:

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     (A) Has a capacity of not less than four kilowatt hours (4 kwh); and

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     (B) Is capable of being recharged from an external source of electricity.

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     (viii) Is acquired by the taxpayer on or after October 1, 2011, but before July 1, 2013.

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     (b) Tax credit. (1) A credit is allowed against the excise tax or sales tax imposed for a

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qualified plug-in electric drive vehicle.

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     (2) Subject to the limitations of subsections (c) through (e) of this section, the credit

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allowed under this section equals one hundred percent (100%) of the excise tax or sales tax

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imposed for a vehicle.

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     (c) The credit allowed under this section may not exceed two thousand dollars ($2,000).

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     (d) The credit allowed under this section is limited to the acquisition of:

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     (1) One vehicle per individual; and

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     (2) Ten (10) vehicles per business entity.

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     (e) A credit may not be claimed under this section:

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     (1) Unless the vehicle is registered in the state; or

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     (2) Unless the owner has already conformed to any applicable state or federal laws or

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regulations governing clean-fuel vehicle or electric vehicle purchases applicable during the

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calendar year in which the vehicle is titled.

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     (f) The department of revenue shall administer the credit under this section.

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     SECTION 2. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes -

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Liability and Computation" is hereby amended by adding thereto the following section:

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     44-18-40.2. Exemption for qualified plug-in electric drive vehicles. – Notwithstanding

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any provision of the general laws to the contrary, the gross receipts from the sale of a qualified

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plug-in electric drive vehicles are exempt from the taxes imposed by this chapter and shall be

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taxed in conformance with the provisions of section 44-34-15.

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     SECTION 3. This act shall take effect upon passage.

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LC00468

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- ELIMINATING EXCISE TAX FOR QUALIFIED ELECTRIC

PLUG-IN DRIVE VEHICLES

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     This act would exempt qualified electric plug-in drive vehicles from excise taxes.

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     This act would take effect upon passage.

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LC00468

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