Sen. Felag Proposes 5-Cent Cut in Rhode Island Gas Tax
Thursday, March 06, 2014
GoLocalProv News Team
Rhode Island's state gasoline tax is about 6 cents a gallon more expensive than than it is in Massachusetts.
That means motorists in Rhode Island communities that border Massachusetts have an incentive to drive a few extra miles to buy their gas in the Bay State, draining business away from local stations.
“A nickel a gallon might not sound like much, but those nickels add up to quite a lot for a fill-up,” said Senator Felag (D-Dist. 10, Warren, Bristol, Tiverton).
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“Bringing in higher taxes from drivers may be one way to get more money into the state treasury, but it’s not very sensible if it puts local businesses at risk because drivers are heading to Massachusetts to save money,” said Senator Felag (D-Dist. 10, Warren, Bristol, Tiverton).
Proposed tax reduction
Senator Felag has again this year introduced legislation that would reduce Rhode Island’s state gasoline tax by 5 cents a gallon, from the current 32 cents to 27 cents. Doing that, he believes, will level the playing field for Rhode Island gas stations in border communities and will encourage drivers to make their gas purchases locally, even further bolstering economic growth in the state.
“In our desire to promote economic development, to make it better to do business in Rhode Island, we cannot focus only on major companies, or certain private sectors. We must do what we can to help small businesses, and that includes owners of gas stations on the Massachusetts border who are daily losing business to our neighboring state,” said Senator Felag. “If businesses in Rhode Island are allowed to compete on a level playing field, I believe Rhode Islanders will patronize them and they will thrive and it wouldn’t hurt to give Rhode Island motorists a little break at the pumps, either.”
51 cents per gallon tax
Coupled with the federal gas tax, purchasers of gas in Rhode Island are paying a little more than 51 cents per gallon in tax. The tax on gas in Massachusetts is about 45 cents per gallon, of which 26.5 cents is the state tax.
“We need tax equity or we will keep losing business to Massachusetts, and we may see gas stations close because they cannot compete fairly,” said Senator Felag.
The legislation, 2014-S 2027, has been referred to the Senate Committee on Finance. Co-sponsors include Sen. Frank S. Lombardi (D-Dist. 26, Cranston), Sen. Michael J. McCaffrey (D-Dist. 29, Warwick), Sen. William A. Walaska (D-Dist. 30, Warwick) and Sen. Louis P. DiPalma (D-Dist. 12, Middletown, Little Compton, Newport, Tiverton).
Related Slideshow: RI Communities with the Highest Tax Rates #39 - #1
How do the taxes in your community compare to other cities and towns in Rhode Island?
GoLocalProv has ranked communities from the least to the highest taxed on the basis of their tax rates, using newly released data from the state Division of Municipal Finance. The below slides list the tax rate per $1,000 in value for homes, commercial property, personal property, and motor vehicles for the 2014 fiscal year, which began last July and ends next June.
Along with the rates are examples of what taxes might cost a typical resident in each city or town. For residential taxes, this calculation is based on the current statewide median price for a single family home, which is $240,000. For communities with them, homestead exemptions are factored in using the latest available figures. For motor vehicles, the example used is a 2008 Honda Accord, valued at the maximum retail price of $15,150. The total cost of home and car taxes is then represented as a percentage of the median income for that community, offering a rough measure of how affordable taxes are for those residents as compared with the taxes in another city or town.
Data sources: the Rhode Island Division of Municipal Finance, the Rhode Island Association of Realtors, the Rhode Island League of Cities and Towns, the National Automobile Dealers Association, and the U.S. Census Bureau.
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#39 New Shoreham
FY 2014 Tax Rates Per $1,000 in Value
Residential: $5.21
Commercial: $5.21
Personal Property: $5.21
Motor Vehicle: $9.75
Tax Cost for Residents
For a single family home valued at $240,000: $1,000.32
For 2008 Honda Accord: $147.71
Total Taxes as % Median Income: $1.29%
Note: Real property is assessed at 80 percent of value. This is reflected in the community's ranking.
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#38 Little Compton
FY 2014 Tax Rates Per $1,000 in Value
Residential: $5.38
Commercial: $5.38
Personal Property: $10.76
Motor Vehicle: $13.90
Tax Cost for Residents
For a single family home valued at $240,000: $1,291.20
For 2008 Honda Accord: $210.59
Total Taxes as % Median Income: 1.56%
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#37 Jamestown
FY 2014 Tax Rates Per $1,000 in Value
Residential: $8.75
Commercial: $8.75
Personal Property: $8.75
Motor Vehicle: $14.42
Tax Cost for Residents
For a single family home valued at $240,000: $2,100.00
For 2008 Honda Accord: $218.46
Total Taxes as % Median Income: $2.84%
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#36 Charlestown
FY 2014 Tax Rates Per $1,000 in Value
Residential: $9.46
Commercial: $9.46
Personal Property: $9.46
Motor Vehicle: $13.08
Tax Cost for Residents
For a single family home valued at $240,000: $2,270.40
For 2008 Honda Accord: $198.16
Total Taxes as % Median Income: 3.56%
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#35 Narragansett
FY 2014 Tax Rates Per $1,000 in Value
Residential: $9.80
Commercial: $14.68
Personal Property: $14.68
Motor Vehicle: $16.46
Tax Cost for Residents
For a single family home valued at $240,000: $2,352.00
For 2008 Honda Accord: $249.37
Total Taxes as % Median Income: 4.06%
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#34 Bristol
FY 2014 Tax Rates Per $1,000 in Value
Residential: $12.80
Commercial: $12.80
Personal Property: $12.80
Motor Vehicle: $17.35
Tax Cost for Residents
For a single family home valued at $240,000: $3,072.00
For 2008 Honda Accord: $262.85
Total Taxes as % Median Income: 5.18%
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#33 Portsmouth
FY 2014 Tax Rates Per $1,000 in Value
Residential: $14.53
Commercial: $14.53
Personal Property: $14.53
Motor Vehicle: $22.50
Tax Cost for Residents
For a single family home valued at $240,000: $3,487.20
For 2008 Honda Accord: $238.61
Total Taxes as % Median Income: 4.87%
Note: Motor vehicles are assessed at 70 percent of value. This is reflected in the community's ranking.
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#32 Westerly
FY 2014 Tax Rates Per $1,000 in Value
Residential: $10.53
Commercial: $10.53
Personal Property: $10.53
Motor Vehicle: $29.67
Tax Cost for Residents
For a single family home valued at $240,000: $2,527.20
For 2008 Honda Accord: $449.50
Total Taxes as % Median Income: 4.93%
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#31 South Kingstown
FY 2014 Tax Rates Per $1,000 in Value
Residential: $15.47
Commercial: $15.47
Personal Property: $15.47
Motor Vehicle: $18.71
Tax Cost for Residents
For a single family home valued at $240,000: $3,712.80
For 2008 Honda Accord: $283.46
Total Taxes as % Median Income: 5.39%
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#30 Newport
FY 2014 Tax Rates Per $1,000 in Value
Residential: $11.71
Commercial: $16.23
Personal Property: $16.23
Motor Vehicle: $23.45
Tax Cost for Residents
For a single family home valued at $240,000: $2,810.40
For 2008 Honda Accord: $355.27
Total Taxes as % Median Income: 5.45%
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#29 Middletown
FY 2014 Tax Rates Per $1,000 in Value
Residential: $15.71
Commercial: $20.87
Personal Property: $15.71
Motor Vehicle: $16.05
Tax Cost for Residents
For a single family home valued at $240,000: $3,770.40
For 2008 Honda Accord: $243.16
Total Taxes as % Median Income: 5.58%
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#28 Exeter
FY 2014 Tax Rates Per $1,000 in Value
Residential: $14.72
Commercial: $14.72
Personal Property: $14.72
Motor Vehicle: $32.59
Tax Cost for Residents
For a single family home valued at $240,000: $3,532.80
For 2008 Honda Accord: $493.74
Total Taxes as % Median Income: 3.93%
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#27 Tiverton
FY 2014 Tax Rates Per $1,000 in Value
Residential: $19.37
Commercial: $19.37
Personal Property: $19.37
Motor Vehicle: $19.14
Tax Cost for Residents
For a single family home valued at $240,000: $4,648.80
For 2008 Honda Accord: $289.97
Total Taxes as % Median Income: 7.75%
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#26 Richmond
FY 2014 Tax Rates Per $1,000 in Value
Residential: $19.76
Commercial: $19.76
Personal Property: $19.76
Motor Vehicle: $22.64
Tax Cost for Residents
For a single family home valued at $240,000: $4,742.40
For 2008 Honda Accord: $274.40
Total Taxes as % Median Income: 6.33%
Note: Motor vehicles are assessed at 80 percent of value. This is reflected in the community's ranking.
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#25 North Kingstown
FY 2014 Tax Rates Per $1,000 in Value
Residential: $18.80
Commercial: $18.80
Personal Property: $18.80
Motor Vehicle: $22.04
Tax Cost for Residents
For a single family home valued at $240,000: $4,512.00
For 2008 Honda Accord: $333.91
Total Taxes as % Median Income: 6.18%
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#24 Coventry
FY 2014 Tax Rates Per $1,000 in Value
Residential: $18.66
Commercial: $22.49
Personal Property: $18.66
Motor Vehicle: $18.75
Tax Cost for Residents
For a single family home valued at $240,000: $4,478.40
For 2008 Honda Accord: $284.06
Total Taxes as % Median Income: 7.11%
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#23 Cumberland
FY 2014 Tax Rates Per $1,000 in Value
Residential: $15.78
Commercial: $15.78
Personal Property: $28.86
Motor Vehicle: $19.87
Tax Cost for Residents
For a single family home valued at $240,000: $3,787.20
For 2008 Honda Accord: $301.03
Total Taxes as % Median Income: 5.62%
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#22 Hopkinton
FY 2014 Tax Rates Per $1,000 in Value
Residential: $19.77
Commercial: $19.77
Personal Property: $19.77
Motor Vehicle: $21.18
Tax Cost for Residents
For a single family home valued at $240,000: $4,744.80
For 2008 Honda Accord: $320.88
Total Taxes as % Median Income: 7.80%
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#21 Warren
FY 2014 Tax Rates Per $1,000 in Value
Residential: $18.67
Commercial: $18.67
Personal Property: $18.67
Motor Vehicle: $26.00
Tax Cost for Residents
For a single family home valued at $240,000: $4,480.80
For 2008 Honda Accord: $393.90
Total Taxes as % Median Income: 9.15%
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#20 East Greenwich
FY 2014 Tax Rates Per $1,000 in Value
Residential: $22.90
Commercial: $22.90
Personal Property: $22.90
Motor Vehicle: $22.88
Tax Cost for Residents
For a single family home valued at $240,000: $5,496.00
For 2008 Honda Accord: $346.63
Total Taxes as % Median Income: 6.05%
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#19 Burrillville
FY 2014 Tax Rates Per $1,000 in Value
Residential: $18.58
Commercial: $18.58
Personal Property: $18.58
Motor Vehicle: $40.00
Tax Cost for Residents
For a single family home valued at $240,000: $4,459.20
For 2008 Honda Accord: $606.00
Total Taxes as % Median Income: 7.35%
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#18 Barrington
FY 2014 Tax Rates Per $1,000 in Value
Residential: $18.20
Commercial: $18.20
Personal Property: $18.20
Motor Vehicle: $42.00
Tax Cost for Residents
For a single family home valued at $240,000: $4,368.00
For 2008 Honda Accord: $636.30
Total Taxes as % Median Income: 5.07%
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#17 West Greenwich
FY 2014 Tax Rates Per $1,000 in Value
Residential: $22.55
Commercial: $22.55
Personal Property: $33.85
Motor Vehicle: $19.02
Tax Cost for Residents
For a single family home valued at $240,000: $4,600.20
For 2008 Honda Accord: $288.15
Total Taxes as % Median Income: 5.81%
Note: Does not include rate for vacant land which is $16.07. Has homestead exemption.
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#16 Foster
FY 2014 Tax Rates Per $1,000 in Value
Residential: $20.40
Commercial: $20.40
Personal Property: $28.03
Motor Vehicle: $36.95
Tax Cost for Residents
For a single family home valued at $240,000: $4,896.00
For 2008 Honda Accord: $559.79
Total Taxes as % Median Income: 7.00%
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#15 Scituate
FY 2014 Tax Rates Per $1,000 in Value
Residential: $33.37
Commercial: $43.20
Personal Property: $39.75
Motor Vehicle: $30.20
Tax Cost for Residents
For a single family home valued at $240,000: $4,484.40
For 2008 Honda Accord: $434.65
Total Taxes as % Median Income: 6.01%
Note: Real property is assessed at only 50 percent of value and motor vehicles are assessed at 95 percent of value. This is reflected in the community's ranking.
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#14 Glocester
FY 2014 Tax Rates Per $1,000 in Value
Residential: $21.24
Commercial: $24.14
Personal Property: $42.29
Motor Vehicle: $24.37
Tax Cost for Residents
For a single family home valued at $240,000: $5,097.60
For 2008 Honda Accord: $369.21
Total Taxes as % Median Income: 7.10%
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#13 North Smithfield
FY 2014 Tax Rates Per $1,000 in Value
Residential: $15.86
Commercial: $17.57
Personal Property: $42.75
Motor Vehicle: $37.62
Tax Cost for Residents
For a single family home valued at $240,000: $3,806.40
For 2008 Honda Accord: $569.94
Total Taxes as % Median Income: 5.54%
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#12 Lincoln
FY 2014 Tax Rates Per $1,000 in Value
Residential: $23.49
Commercial: $26.85
Personal Property: $36.89
Motor Vehicle: $30.66
Tax Cost for Residents
For a single family home valued at $240,000: $3,664.44
For 2008 Honda Accord: $464.50
Total Taxes as % Median Income: 5.57%
Note: Has homestead exemption.
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#11 Warwick
FY 2014 Tax Rates Per $1,000 in Value
Residential: $19.79
Commercial: $29.68
Personal Property: $39.58
Motor Vehicle: $34.60
Tax Cost for Residents
For a single family home valued at $240,000: $4,749.60
For 2008 Honda Accord: $524.19
Total Taxes as % Median Income: 8.79%
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#10 West Warwick
FY 2014 Tax Rates Per $1,000 in Value
Residential Rates:
-
For apartments with 6+ units: $35.26
-
For two to five family buildings: $35.26
-
For single family homes: $24.67
Commercial: $29.98
Personal Property: $39.00
Motor Vehicle: $28.47
Tax Cost for Residents
For a single family home valued at $240,000: $5,920.80
For 2008 Honda Accord: $431.32
Total Taxes as % Median Income: 12.70%
Note: For ranking purposes, the average of the three residential rates was used.
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#9 Cranston
FY 2014 Tax Rates Per $1,000 in Value
Residential: $22.84
Commercial: $34.26
Personal Property: $34.26
Motor Vehicle: $42.44
Tax Cost for Residents
For a single family home valued at $240,000: $5,481.60
For 2008 Honda Accord: $642.97
Total Taxes as % Median Income: 10.48%
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#8 Smithfield
FY 2014 Tax Rates Per $1,000 in Value
Residential: $17.52
Commercial: $17.52
Personal Property: $61.06
Motor Vehicle: $39.00
Tax Cost for Residents
For a single family home valued at $240,000: $4,204.80
For 2008 Honda Accord: $590.85
Total Taxes as % Median Income: 6.54%
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#7 East Providence
FY 2014 Tax Rates Per $1,000 in Value
Residential: $22.78
Commercial: $25.21
Personal Property: $56.25
Motor Vehicle: $37.10
Tax Cost for Residents
For a single family home valued at $240,000: $4,647.12
For 2008 Honda Accord: $562.07
Total Taxes as % Median Income: 10.54%
Note: Rates are for FY 2013. Has homestead exemption.
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#6 Johnston
FY 2014 Tax Rates Per $1,000 in Value
Residential: $28.75
Commercial: $28.75
Personal Property: $59.22
Motor Vehicle: $41.46
Tax Cost for Residents
For a single family home valued at $240,000: $5,520.00
For 2008 Honda Accord: $628.12
Total Taxes as % Median Income: 11.20%
Note: Has homestead exemption.
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#5 Pawtucket
FY 2014 Tax Rates Per $1,000 in Value
Residential: $23.06
Commercial: $30.88
Personal Property: $52.09
Motor Vehicle: $53.30
Tax Cost for Residents
For a single family home valued at $240,000: $5,534.40
For 2008 Honda Accord: $807.50
Total Taxes as % Median Income: 16.00%
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#4 North Providence
FY 2014 Tax Rates Per $1,000 in Value
Residential: $24.29
Commercial: $31.03
Personal Property: $69.41
Motor Vehicle: $41.95
Tax Cost for Residents
For a single family home valued at $240,000: $4,663.68
For 2008 Honda Accord: $635.54
Total Taxes as % Median Income: 10.55%
Note: Has homestead exemption.
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#3 Woonsocket
FY 2014 Tax Rates Per $1,000 in Value
Residential: $34.56
Commercial: $39.81
Personal Property: $46.58
Motor Vehicle: $46.58
Tax Cost for Residents
For a single family home valued at $240,000: $4,976.64
For 2008 Honda Accord: $705.69
Total Taxes as % Median Income: 14.45%
Note: Has homestead exemption.
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#2 Providence
FY 2014 Tax Rates Per $1,000 in Value
Residential Rates:
-
For owner-occupied residential property: $19.25
-
For non-owner-occupied residential property: $33.75
Commercial: $36.75
Personal Property: $55.80
Motor Vehicle: $60.00
Tax Cost for Residents
For a single family home valued at $240,000: $4,620.00
For 2008 Honda Accord: $909.00
Total Taxes as % Median Income: 14.21%
Note: For ranking purposes, the average of the two residential rates was used.
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#1 Central Falls
FY 2014 Tax Rates Per $1,000 in Value
Residential: $25.72
Commercial: $37.06
Personal Property: $73.11
Motor Vehicle: $48.65
Tax Cost for Residents
For a single family home valued at $240,000: $4,728.36
For 2008 Honda Accord: $737.05
Total Taxes as % Median Income: 14.43%
Note: Has homestead exemption.
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