NEW: State Senator Seeks To Raise Car Tax Exemption
Wednesday, August 31, 2011
State Senator James Sheehan plans to introduce legislation during the 2012 General Assembly session to set the statewide minimum auto excise tax exemption at $3,500.
As part of last year’s state budget adopted by the General Assembly and signed by the governor, the state did away with the $6,000 auto excise tax exemption that was uniformly administered by all cities and towns. Under that exemption, anyone owning an auto that was worth less than $6,000 did not have to pay excise tax on the vehicle; those with vehicles valued higher than $6,000 were taxed by their communities on the amount over that threshold.
Under the new law, cash-strapped cities and towns were allowed to lower the exemption to $500.
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He continued: In light of the pressure this tax has placed on working class Rhode Islanders, the state needs to take action,” said Senator Sheehan. “Allowing cities and towns to lower the exemption from $6,000 to $500 is just too enormous a change all at once. The $500 exemption threshold is just too low.”
