Must Read! 44-34.1-1. Excise tax phase out
2000 -- H 7562 SUBSTITUTE A AS AMENDED
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LC02202/SUB A
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2000
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A N A C T
RELATING TO AUTOMOBILE EXCISE TAX
Introduced By: Representative Pires, Giannini, Fox, M. Anderson and Moura
Date Introduced: February 3, 2000
Referred To: Committee on Finance
It is enacted by the General Assembly as follows:
SECTION 1. Sections 44-34.1-1 and 44-34.1-2 of the General Laws in Chapter 44-34.1 entitled "Motor Vehicle and Trailer Excise Tax Elimination Act of 1998" are hereby amended to read as follows:
44-34.1-1. Excise tax phase out -- (a) Notwithstanding the provisions of chapter 34 of this title or any other provisions to the contrary, the motor vehicle and trailer excise tax established by section 44-34-1 shall be phased out by the fiscal year 2005. The phase out applies to all motor vehicles and trailers, including leased vehicles.
Lessors of vehicles that pay excise taxes directly to municipalities shall provide lessees, at the time of entering into the lease agreement, an estimate of annual excise taxes payable throughout the term of the lease. In the event the actual excise tax is less than the estimated excise tax, the lessor shall rebate annually to the lessee the difference between the actual excise tax and the estimated excise tax.
(b) Pursuant to the provisions of this section, all motor vehicles are assessed a value by the vehicle value commission. That value is assessed according to the provisions of section 44-34-11(c)(1). and in accordance with the terms as defined herein, provided, however, that the maximum taxable value percentage applicable to model year values as of December 31, 1997 shall continue to be applicable in future year valuations aged by one year in each succeeding year.
(c) (1) The motor vehicle excise tax phase out commences with the excise tax bills mailed to taxpayers for the fiscal year 2000. The tax assessors of the various cities and towns and fire districts shall reduce the average retail value of each vehicle assessed by using the prorated exemptions from the following table:
Year
Exempt from value
fiscal year 2000
$1,500
fiscal year 2001
$2,500
fiscal year 2002
$3,500
fiscal year 2003
$8000
fiscal year 2004
$10,000
fiscal year 2005
$15,000
fiscal year 2006
All vehicles
(2) The excise tax phase out provides increased levels of assessed value reductions until the tax is eliminated.
(3) Current exemptions remain in effect throughout the phase out period.
(4) The excise tax rates and ratios of assessment shall not be greater than fiscal year 1998 levels for each city, town, and fire district, provided, however, in the Town of Johnston the excise tax rate and ratios of assessment shall not be greater than fiscal year 1999 levels and in no event shall the final taxable value of a vehicle be higher than assessed in the prior fiscal year. and the levy of a city, town, or fire district shall be limited to the lesser of the maximum taxable value or net assessed value for purposes of collecting the tax in any given year.
(d) Definitions:
(1) Maximum taxable value: The value of vehicles as prescribed by 44-34-11 of the R.I. general laws reduced by the percentage of assessed value applicable to model year values as determined by the Rhode Island Vehicle Value Commission as of December 31, 1997 for the vehicles valued by the commission as of December 31, 1997. For all vehicle value types not valued by the Rhode Island Vehicle Value Commission as of December 31, 1997, the maximum taxable value shall be the latest value determined by a local assessor from an appropriate pricing guide, multiplied by the ratio of assessment used by that city, town, or fire district for a particular model year as of December 31, 1997.
(2) Net assessed value: The motor vehicle values as determined in accordance with 44-34.1-1 (d)(1) as described above less all personal exemptions allowed by cities, towns, fire districts, and the state of Rhode Island as provided for in 44-34.1-1 (c)(1).
