New bill introduced to phase out car taxes

PROVIDENCE, R.I. (WPRI) — A state representative has filed new legislation to get rid of the car taxes collected by cities and towns.

Rep. David Coughlin’s bill would phase out motor vehicle excise taxes over the next few years. Under the legislation, the current $500 tax exemption would increase to $5,000 in fiscal year 2017, $10,000 in 2018, and car taxes would be eliminated in 2019.

“The much-maligned car tax was supposed to be a temporary measure when it was instituted many years ago; yet, it continues to plague Rhode Island citizens every single year,” Coughlin said in a news release. “It’s time we follow the original intent of this tax and eliminate its burden on the taxpayers.”

Coughlin’s bill calls for cities and towns to be reimbursed using sales tax and lottery revenue from the state’s general fund.

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