11 replies to this topic

[Psych114]

Could someone explain RI's current auto tax? I've lived in RI for 7 years and did not know about it.  I tried to look it up on government and DMV sites (and just straight out googling) and I'm just seeing bit and pieces- including the idea of phasing it out.  I dont recall ever receiving a tax bill for my car (other than initial sales tax) and I just bought another car...  A clear explanation would be appreciated- Thanks!

[runawayjim]

Psych114, on Aug 9 2009, 07:22 PM, said:

Could someone explain RI's current auto tax? I've lived in RI for 7 years and did not know about it.  I tried to look it up on government and DMV sites (and just straight out googling) and I'm just seeing bit and pieces- including the idea of phasing it out.  I dont recall ever receiving a tax bill for my car (other than initial sales tax) and I just bought another car...  A clear explanation would be appreciated- Thanks!

The taxing has to do with the age of the car. I think if it's over 10 years old, they don't tax it. Other than that, I'm not sure how it works. There's a page somewhere that lists the car tax for all the towns in RI. Providence is something like 7% of the blue book value.

[Bil]

Psych114, on Aug 9 2009, 06:22 PM, said:

Could someone explain RI's current auto tax? I've lived in RI for 7 years and did not know about it.  I tried to look it up on government and DMV sites (and just straight out googling) and I'm just seeing bit and pieces- including the idea of phasing it out.  I dont recall ever receiving a tax bill for my car (other than initial sales tax) and I just bought another car...  A clear explanation would be appreciated- Thanks!

Officially, the car tax is a property tax, and each town sets its own rate. Here's a list of rates. Like houses, you pay a certain amount per thousand of the car's valuation (or, just move the decimal point over and you get the percentage). The valuation is the blue book value of your car minus some amount set by law (I can't find the number, and I think it changes every year, to the point where it was supposed to make all tax bills $0). The plan to phase it out has hit the wall of RI's budgetary reality, though, and probably won't happen.

If you keep your car registration address up to date with the DMV, you should receive your tax bill at that address... if you owe anything. They don't send out bills for $0. So if you drove an older car, you may not have had a bill to pay.

Hope that helps a little.

[runawayjim]

Bil, on Aug 10 2009, 09:57 AM, said:

Officially, the car tax is a property tax, and each town sets its own rate. Here's a list of rates. Like houses, you pay a certain amount per thousand of the car's valuation (or, just move the decimal point over and you get the percentage). The valuation is the blue book value of your car minus some amount set by law (I can't find the number, and I think it changes every year, to the point where it was supposed to make all tax bills $0). The plan to phase it out has hit the wall of RI's budgetary reality, though, and probably won't happen.

If you keep your car registration address up to date with the DMV, you should receive your tax bill at that address... if you owe anything. They don't send out bills for $0. So if you drove an older car, you may not have had a bill to pay.

Hope that helps a little.

The phase out has definitely been put on hold. The towns would go bankrupt if they phased it out.

As for your tax bill, I would call the tax assessor or collector's office for your town to find out if you owe anything. The idiots that work in city hall in Providence never sent me a tax bill and the first time I heard that I owed anything, was from a letter from a collection agency. I was pissed and sent them a very nasty email. Of course the morons in our General Assembly wrote the laws to protect the idiots in city hall by saying that we are responsible for our taxes even if said idiots don't mail out a tax bill.

And yes, I have changed my address with DMV shortly after moving, nevermind the fact that my mail should have been forwarded. It was simply a matter of the people working in city hall being a bunch of idiots.

[Psych114]

Bil, on Aug 10 2009, 09:57 AM, said:

Officially, the car tax is a property tax, and each town sets its own rate. Here's a list of rates. Like houses, you pay a certain amount per thousand of the car's valuation (or, just move the decimal point over and you get the percentage). The valuation is the blue book value of your car minus some amount set by law (I can't find the number, and I think it changes every year, to the point where it was supposed to make all tax bills $0). The plan to phase it out has hit the wall of RI's budgetary reality, though, and probably won't happen.

If you keep your car registration address up to date with the DMV, you should receive your tax bill at that address... if you owe anything. They don't send out bills for $0. So if you drove an older car, you may not have had a bill to pay.

Hope that helps a little.

Oh wow, the rate for Providence is so HIGH! How do people afford this? I cant find anything on the idea of age of the car is taken into account or that the car must be over a certain $ value. My old car was 8 years old at purchase and worth 5k at that time.  I've always kept up the registration and never moved.  Guess I'll have to call city hall... but I really dont want to hear what they may tell me.

Thanks to all who have responded-

[runawayjim]

Psych114, on Aug 10 2009, 09:05 PM, said:

Oh wow, the rate for Providence is so HIGH! How do people afford this? I cant find anything on the idea of age of the car is taken into account or that the car must be over a certain $ value. My old car was 8 years old at purchase and worth 5k at that time.  I've always kept up the registration and never moved.  Guess I'll have to call city hall... but I really dont want to hear what they may tell me.

Thanks to all who have responded-

I had an older car for a few years here and never received a tax bill from either North Providence or Providence. I also think the value cut off might be in the $5k area.

[frymasterspeck]

Am I the only one who remembers those dreaded quarterly coupons...? And, for the record, I've never owned a car worth $5k. Not even close.

[runawayjim]

frymasterspeck, on Aug 11 2009, 10:26 AM, said:

Am I the only one who remembers those dreaded quarterly coupons...? And, for the record, I've never owned a car worth $5k. Not even close.

I paid quarterly when I actually got my tax bill. No way could I afford to pay in full.

[Recchia]

The first $5k is exempt. And you pay for the previous year owned.

[Gusterfell]

The DMV won't let you renew the registration of a car on which you owe back taxes.  This is how I found out I owed tax a few years back when, like Jim, the town didn't send me a bill.

[Psych114]

It would make more sense if 5K was exempt- then I wouldnt have owed on my first car.  Yet a friend of mine says she owes on a 1991 Volvo that wasnt worth 5K in the time she's had it... Anyone know how they decide the car value? KBB or Edmunds?  It would be great to find information on a gov website if anyone knows where that might be... Im having the same conversation offline with Prov residents and everyone is so confused!
Thanks to all.

[runawayjim]

Psych114, on Aug 13 2009, 07:25 AM, said:

It would make more sense if 5K was exempt- then I wouldnt have owed on my first car.  Yet a friend of mine says she owes on a 1991 Volvo that wasnt worth 5K in the time she's had it... Anyone know how they decide the car value? KBB or Edmunds?  It would be great to find information on a gov website if anyone knows where that might be... Im having the same conversation offline with Prov residents and everyone is so confused!
Thanks to all.

You could call the tax assessor's office. They should be able to give you an answer (though when asking about the homestead exemption I got several answers until I went down there and spoke with someone, the lady who answers the phone is grumpy).

I'm pretty sure they either use KBB or NADA retail pricing. They're pretty close in the estimate.