Rhode Island leaders unveil elimination of car tax will be part of this year’s state budget

Cars in Rhode Island
This is an image of cars. (WLNE)

PROVIDENCE, R.I. (WLNE) — Ahead of the full unveiling of the state budget Thursday evening, Gov. Dan McKee and State House leadership announced that taxpayer relief proposals in the budget. 

The biggest item is the complete phase out of the car tax starting this year. House Speaker Joe Shekarchi said the elimination of the car tax will directly save Rhode Islander $64 million this year. 

Another item is a child tax credit of $250 per child for up to three children for each family. That will be available to single filers who make under $100,000 or joint filers who make under $190,000. 

Senate President Dominick Ruggerio said that the state would also foot the bill on the $8 fee to re-issue the state’s new license plate. 

Other tax relief state leaders announced was tax assistance for disabled Rhode Islanders and seniors and supporting the unemployment fund for small businesses. 

Two items of note that were admitted were a temporary suspension of the gas tax and lowering the sales tax. 

Shekarchi said the gas tax suspension was ruled out because it was not guaranteed distributors would pass the saving down to consumers. 

On the sales tax, McKee said he is still in favor of lowering it to be competitive with Massachusetts and would explore it ahead of next year’s budget. 

Categories: News, Politics, Regional News, Rhode Island