seeking info on Rhode Island car tax

[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]

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!

[Bil]

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]

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.

[Psych114]

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]

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-

[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]

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.

[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]

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.