Car tax: What is proposed in Governor Raimondo’s budget?

By Alana Cerrone


"let’s get together and give every Rhode Islander the car tax relief that they deserve."

That statement got a standing ovation from lawmakers at Governor Raimondo’s State of the State Tuesday night. She says Rhode Island taxpayers would save over $50 million in car tax.

"We would change the way we value cars to be the trade-in value which is about a 30% reduction."

The value of each car would be cut on a one-time basis by 30%, so the owner would owe about 30%  less in taxes.

"I do believe Rhode Islanders want and deserve a car tax cut."

Speaker Nick Mattiello says a cut won’t cut it.

"I’ve intended real relief this year for our citizens so that’s going to be something that we have to work on."

His plan? Take the $200 million dollar item off the table. He would phase the tax out over 5 years, reserving $40 million in the budget for the municipalities, which would lower the tax by 20% each year until the end of year 5, when the tax is gone altogether.

But the governor says she hasn’t heard all the details from Mattiello himself. "I haven’t seen a plan that says how we would get $200 million."

She says she is open to compromise, though.

"I’ll work with the legislature to see what we can do and what we can afford"

"I believe the citizens of the state deserve a full repeal."

© WLNE-TV 2017