§ 44-34.1-1 - Excise tax phase-out.
SECTION 44-34.1-1
§ 44-34.1-1 Excise tax phase-out. –(a) Notwithstanding the provisions of chapter 34 of this title or any otherprovisions to the contrary, the motor vehicle and trailer excise taxestablished by § 44-34-1 may be phased out. The phase-out shall apply toall motor vehicles and trailers, including leased vehicles.
(2) Lessors of vehicles that pay excise taxes directly tomunicipalities shall provide lessees, at the time of entering into the leaseagreement, an estimate of annual excise taxes payable throughout the term ofthe lease. In the event the actual excise tax is less than the estimated excisetax, the lessor shall annually rebate to the lessee the difference between theactual excise tax and the estimated excise tax.
(b) Pursuant to the provisions of this section, all motorvehicles shall be assessed a value by the vehicle value commission. That valueshall be assessed according to the provisions of § 44-34-11(c)(1) and inaccordance with the terms as defined in subsection (d) of this section;provided, however, that the maximum taxable value percentage applicable tomodel year values as of December 31, 1997, shall continue to be applicable infuture year valuations aged by one year in each succeeding year.
(c) The motor vehicle excise tax phase-out shall commencewith the excise tax bills mailed to taxpayers for the fiscal year 2000. Thephase-out, beyond fiscal year 2003, shall be subject to annual review andappropriation by the general assembly. The tax assessors of the various citiesand towns and fire districts shall reduce the average retail value of eachvehicle assessed by using the prorated exemptions from the following table:
Local Fiscal Year State fiscal year
Exempt from value Local Exemption Reimbursement
fiscal year 1999 0 $1,500
fiscal year 2000 $1,500 $2,500
fiscal year 2001 $2,500 $3,500
fiscal year 2002 $3,500 $4,500
fiscal years 2003, 2004
and 2005 $4,500 $4,500
for fiscal year 2006 and $5,000 $5,000
for fiscal year 2007 $6,000 $6,000
for fiscal year 2008 and each year thereafter the exemptionand the state fiscal year reimbursement shall be increased, at a minimum, tothe maximum amount to the nearest two hundred and fifty dollar ($250) incrementwithin the allocation of one and twenty-two hundredths percent (l.22%) of netterminal income derived from video lottery games pursuant to the provisions of§ 42-61-15, and in no event shall the exemption in any fiscal year be lessthan the prior fiscal year.
(2) The excise tax phase-out shall provide levels of assessedvalue reductions until the tax is eliminated or reduced as provided in thischapter.
(3) Current exemptions shall remain in effect as provided inthis chapter.
(4) The excise tax rates and ratios of assessment shall bemaintained at a level identical to the level in effect for fiscal year 1998 foreach city, town, and fire district; provided, in the town of Johnston theexcise tax rate and ratios of assessment shall be maintained at a levelidentical to the level in effect for fiscal year 1999 levels and in no eventshall the final taxable value of a vehicle be higher than assessed in the priorfiscal year, and the levy of a city, town, or fire district shall be limited tothe lesser of the maximum taxable value or net assessed value for purposes ofcollecting the tax in any given year.
(1) "Maximum taxable value" means the value of vehicles asprescribed by § 44-34-11 reduced by the percentage of assessed valueapplicable to model year values as determined by the Rhode Island vehicle valuecommission as of December 31, 1997, for the vehicles valued by the commissionas of December 31, 1997. For all vehicle value types not valued by the RhodeIsland vehicle value commission as of December 31, 1997, the maximum taxablevalue shall be the latest value determined by a local assessor from anappropriate pricing guide, multiplied by the ratio of assessment used by thatcity, town, or fire district for a particular model year as of December 31,1997.
(2) "Net assessed value" means the motor vehicle values asdetermined in accordance with § 44-34-11 less all personal exemptionsallowed by cities, towns, fire districts, and the state of Rhode Islandexemption value as provided for in § 44-34.1-1(c)(1).
(e) If any provision of this chapter shall be held invalid byany court of competent jurisdiction, the remainder of this chapter and theapplications of the provisions hereof shall not be effected thereby.