2015 -- S 0311

========

LC001100

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

____________

A N   A C T

RELATING TO TAXATION - EXCISE ON MOTOR VEHICLES AND TRAILERS

     

     Introduced By: Senators Pichardo, Metts, Crowley, Walaska, and Miller

     Date Introduced: February 12, 2015

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

1

     SECTION 1. Sections 44-34-3 and 44-34-11 of the General Laws in Chapter 44-34

2

entitled "Excise on Motor Vehicles and Trailers" are hereby amended to read as follows:

3

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

4

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

5

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

6

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

7

be at the average retail trade-in price as determined under § 44-34-2 or at a uniform percentage of

8

these, not to exceed one hundred percent (100%), to be determined by the assessors in each city

9

or town; provided, that every vehicle and trailer in the city of Pawtucket shall be assessed in

10

accordance with §§ 44-5-20.1 and 44-5-20.2; provided, further, that motor vehicles owned,

11

leased, or utilized by rental companies, as those terms are defined in § 31-34.1-1, shall not be

12

valued for excise tax purposes at an amount greater than the National Automobile Dealers

13

Association average retail value for new vehicles for the year and vehicle model in question.

14

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

15

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

16

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

17

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

18

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

19

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

 

1

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

2

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

3

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

4

the excise tax levy shall be applied to the excise assessment roll at a rate that produces an amount

5

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

6

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

7

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

8

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

9

than December 31 next succeeding.

10

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

11

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

12

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

13

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

14

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

15

(18%) per annum, or, in the case of the city of Cranston, a penalty of twelve percent (12%) per

16

annum which applies on the date of the delinquency or, for any city or town fiscal year

17

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

18

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

19

taxing jurisdiction.

20

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

21

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

22

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

23

as prescribed in § 44-34-2.

24

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

25

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

26

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

27

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

28

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

29

revenue, who shall serve as chair;

30

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

31

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

32

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

33

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

34

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

 

LC001100 - Page 2 of 6

1

the senate;

2

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

3

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

4

consent of the senate.

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

fitness for the office shall be unlawful.

13

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

14

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

15

      (c) The commission shall annually determine the presumptive values of vehicles and

16

trailers subject to the excise tax in the following manner:

17

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

18

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

19

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

20

      (i) The average retail trade-in price of similar vehicles of the same make, model, type,

21

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

22

as that of the National Automobile Dealers Association for New England. Where regional guides

23

are not available, the commission shall use other publications deemed appropriate; and

24

      (ii) Other information concerning the average retail trade-in prices for make, model,

25

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

26

value commission may deem appropriate to determine fair values.

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

LC001100 - Page 3 of 6

1

commission may consider those factors in its lists or regulations.

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

among its members such other officers as it deems necessary.

10

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

11

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

12

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

13

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

14

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

15

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

16

expenses.

17

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

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

per capita basis.

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

LC001100 - Page 4 of 6

1

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

2

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

3

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

4

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

5

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

6

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

7

responsible for the enforcement of this provision.

8

     SECTION 2. This act shall take effect upon passage.

========

LC001100

========

 

LC001100 - Page 5 of 6

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - EXCISE ON MOTOR VEHICLES AND TRAILERS

***

1

     This act would amend the provisions of the state car tax by providing that the assessment

2

of used motor vehicles would be based on the average trade-in price, rather than retail price.

3

     This act would take effect upon passage.

========

LC001100

========

 

LC001100 - Page 6 of 6