Plan To Cut Car Tax Expected To Be Introduced Tuesday

May 30, 2017

A bill to begin the phaseout of the state’s car tax is expected to be introduced Tuesday. Eliminating the tax is the top priority for House Speaker Nicholas Mattiello.

Speaker Mattiello focused on the car tax issue in the face of a tough re-election challenge last year in his conservative-leaning Cranston district. He says his constituents pointed to it as an issue requiring attention.

Mattiello has said he hopes to eliminate the car tax gradually over six years.

The tax is unpopular. Providence residents pay the highest car taxes in the state. But the tax also generates about $220 million in revenue each year for cities and towns. So the state will have to come up with most of that money to totally wipe out the car tax.