PROVIDENCE, R.I. (AP) — A plan to eliminate Rhode Island’s unpopular car taxes has been introduced in the state legislature.
Democratic House Speaker Nicholas Mattiello on Tuesday announced his plan for a six-year phase-out of car taxes, which are levied by cities and towns.
Mattiello says it will cost the state about $221 million to fully eliminate the taxes by 2024.
He says the first $26 million cut would happen in the next fiscal year that begins in July by reducing the percent of a car’s retail value that can be taxed from 100 to 95 percent.
Mattiello pledged during a hard-fought re-election last year to eliminate car taxes. Democratic Gov. Gina Raimondo has proposed a more modest cut. “I credit Speaker Mattiello for tackling an issue as big as the car tax and wholeheartedly agree that Rhode Islanders deserve a car tax cut,” said the Governor in a statement reacting to the Speaker’s plan on Tuesday. “His $220 million plan deserves a full public vetting, and I look forward to working with him to put money back in Rhode Islander’s pockets.”
The first public hearing is scheduled for next week.
