PROVIDENCE, R.I. (WPRI) — East Providence is one step closer to accelerating its phaseout of the state’s car tax.
The Rhode Island motor vehicle excise tax is set to be eliminated this year, thanks to a budget surplus.
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But since East Providence operates on a Nov. 1 fiscal schedule, unlike the state’s other 38 communities which operate on a July 1 fiscal schedule, the car tax wouldn’t be scratched until 2023.
The budget proposal, as is, would keep East Providence one year behind in the car tax phaseout. However, an amendment passed by the House Thursday would allow the city to jump ahead to the next fiscal year.
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East Providence Mayor Bob DaSilva said he’s grateful that Gov. Dan McKee and the General Assembly were willing to work with the city to ensure that residents wouldn’t have to wait an additional year to benefit from the early phaseout.
“This helped us eliminate approximately 3,300 more vehicles off the tax roll and it cut the average motor vehicle tax bill by about 40% to 50%,” DaSilva explained.
The Senate is scheduled to vote on the amendment next week.