NEWS

Senate president suggests phasing out car tax immediately

Posted 4/13/22

By RORY SCHULER

No Ocean State resident relishes the receipt of their local car tax bill in the mail. If you own a car in Rhode Island, it’s possible you’ve seen your last vehicle tax …

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NEWS

Senate president suggests phasing out car tax immediately

Posted

By RORY SCHULER

No Ocean State resident relishes the receipt of their local car tax bill in the mail. If you own a car in Rhode Island, it’s possible you’ve seen your last vehicle tax demand letter.

On Monday, the Rhode Island State Senate president suggested speeding up a car-tax phase-out to help balance the rising cost of living.

Senate President Dominick Ruggerio, a North Providence Democrat, spoke at the Northern Rhode Island Chamber of Commerce’s “Eggs & Issues” event, and revealed the proposal for a speedy spike of the unpopular gas tax.

“We also need to recognize that Rhode Islanders are feeling the pinch of higher costs,” Ruggerio told the audience. “While by many measures the economy is thriving, and Rhode Island is a national leader in economic recovery, inflationary concerns are very real, and they are being felt by Rhode Islanders.”

Lawmakers passed legislation to phase the tax out over a six-year period in 2017 (two years remain). Ruggerio wants to speed that up, expecting multiple funding windfalls in the next year’s state budget.

“One step that I think we are equipped to take — and that I believe we should take — is to accelerate the car tax phase-out,” Ruggerio told the crowd as the smell of omelets and moderate politics hung in the air. “This will provide lasting relief for everyday Rhode Islanders.”

The senate leader also insists legislators are “also working to provide additional tax relief for our veterans.”

Ruggerio then went on to warn of apathy at the polls and the radical left.

“There are candidates running for office who are downright hostile to business,” Ruggerio said. “The Rhode Island Political Coop is fielding candidates for Governor, Lieutenant Governor, and legislative seats. They are calling for increased taxes. They are calling for a $19 minimum wage, despite the fact that we just increased the minimum wage to $15. Many of their members want to defund the police, which would have disastrous consequences for our small businesses and our neighborhoods.”

He urged voters to cast ballots in this year’s Democratic primaries. He warned his potential “radical” opponents could pick up unexpected wins if voter apathy keeps voters away from the primary polls.

“They are vocal, and their radical ideas get a lot of media attention,” Ruggerio said. “So it is absolutely vital that we also hear from you. We need you to participate in the electoral process. And we need you to participate in elections – including primaries.”

Last Tuesday, Johnston held Rhode Island’s first election of the year — a $215 school bond referendum through which voters decided to fund the biggest school construction project in the town’s history. Although 86 percent of voters voted in favor of the project, only around 5.3 percent of voters made it out to the polls. Although special election turnout is always low, last Tuesday’s referendum participation was pitiful, according to election moderators at polling sites throughout Johnston.

“If you choose to sit out primaries – especially the Democratic primary – then you could be left with only the most extreme candidates in the General Election ... candidates who don’t reflect the values of most Rhode Islanders,” Ruggerio said.

Meanwhile, Ruggerio and other State House leaders will soon be splitting up a plump budget fattened further by more than $1 billion in federal American Rescue Plan Act appropriations awaiting distribution.

The car tax won’t actually disappear. While the fee will remain on the books, the state will cover the tab rather than individual taxpayers. Rhode Island Gov. Dan McKee budgeted millions in his proposed budget to cover the tax for this year. Ending the tax immediately would require a larger contribution from the state budget, but lawmakers are expecting enough federal funds and increased revenue to absorb the accelerated phase-out.

Ruggerio, speaking to a room full of business owners, stressed the importance of helping to improve Rhode Island’s business climate.

“Working with the Governor and the House, on our first day of session this year we appropriated $32 million in small business assistance, funded through the American Rescue Plan Act, through the ‘down payment’ budget bill,” Ruggerio said. “This builds on federal funding we appropriated last June, as well as prior funding allocated to assist small businesses during the pandemic. It includes grants to help businesses build their capacity and make needed investments.”

Although the pandemic seems to be fading from public consciousness, its wide-reaching affects are still revealing themselves on a daily basis.

“It is more important than ever that we continue to work to improve our business climate, and to foster job creation in our state,” Ruggerio said. “Our focus in the Senate remains on finding ways to boost our economy and help people get back to work … and that starts with keeping our small businesses open, easing the burdens they face, and empowering them to innovate and adapt.”

car tax phase-out, car tax

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