Speaker introduces plan to phase out car tax

House Speaker Nick Mattiello unveiled his plan to phase out the car tax in Rhode Island over the next six years. 

He formally introduced the bill to the house late Tuesday afternoon. The Speaker promised voters during his contentious campaign that he would oust the unpopular tax.

"This plan, the plan that I am going to introduce today offers immediate relief to everyone that is taxed on a car,” said Mattiello.

If approved, the plan would take effect July 1 with a $26 million price tag for year one.

The first year 153,000 older cars would be taken off the tax roll.

"I haven’t seen all the details but I think it’s probably a good start. I know there’s at least $26 million worth of waste in our budget,” said House Minority Leader Patricia Morgan.

The first year, the minimum exemption applied to all cars would be raised to $1,000 from $500.

The tax would be eliminated entirely by 2024, at that point coming with a price tag of $221 million.

"If you prioritize this is not the most difficult thing in the world to do. It depends on what priority you want to put to it,” said Mattiello.

This particular issue has struck a chord between the Speaker and the Governor. She has been fighting hard for her plan to make public college tuition free to Rhode Islanders for two years.

Governor Raimondo issued the following statement on the plan:

"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. 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 speaker emphasized to reporters during a media briefing that the car tax and college tuition plan are entirely separate issues. As to where the money will come from for his proposal, the Speaker not sharing any specifics.

"There are going to be some cuts to different areas already. So, it’s not going to significantly have a major impact on any particular program or spending,” said Mattiello.

Senate President Dominick Ruggerio released this statement on the plan. "I am supportive of efforts to provide car tax relief. The communities I represent, Providence and North Providence, have among the highest auto excise tax rates in the state. It is my hope that any proposal be affordable and sustainable. I have not yet seen the Speaker’s proposal but I anticipate that it will be thoroughly reviewed by the Senate Finance Committee."

©WLNE-TV / ABC6 2017