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By: The Associated Press
PROVIDENCE, R.I. (AP) — A proposal to eliminate Rhode Island’s car taxes is moving quickly through the General Assembly, but it remains unclear how legislators will find $221 million needed to pay for the 6-year phaseout.
State senators raised concerns about the cost Thursday night during a hearing in the Senate Finance Committee. There’s also concern that some cities and towns will benefit more than others because they tax cars using different rates and exemptions.
It was the second public hearing on the proposed cuts after a House Finance Committee hearing Tuesday.
The legislation sponsored by House Speaker Nicholas Mattiello and Senate President Dominick Ruggerio, both Democrats, would cost the state $26 million in its first year to reimburse municipalities for lost tax revenue, and $221 million to fully eliminate the taxes by 2023.
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