MOTOR VEHICLE TAXES
WHY am I getting a vehicle tax bill this year? Previously the state of Rhode Island was paying the City of East Providence for the first $6,000 in value of your vehicle tax. Due to budgetary constraints the State is now only paying for the first $500.
Example: 2010 bill $6,000 vehicle value bill – 0
2011 bill $6,000 vehicle value bill - $204.05
WHERE do values come from? Values are published annually by the State Motor Vehicle Value Commission. Every vehicle in the State with the same Vehicle Identification Number (VIN) has the same value. The condition of your vehicle, the number of miles on your vehicle, and the actual value of your vehicle are not considered. Only the make, model, and VIN are used as a basis for the tax. The City Assessor’s office does not value your vehicle.
Because of the old $6,000 exemption you probably have not noticed that the value of used vehicles has been going up for the last few years. Not as many people are buying new cars, which has increased the demand and value of used cars.
The vehicle excise tax is really on your registration, not your car! You must remember to turn your plates in (cancel your registration) if your vehicle is sold, stolen, or destroyed. If you do not turn in your plates your registration will continue to run and you will be responsible to pay the tax on the registration even if you no longer have the vehicle. In Rhode Island your registration runs for two years unless canceled. You could end up paying 2 years of taxes on a vehicle you do not own, if you don’t turn in your plates to the Registry of Motor Vehicles. When you do turn in your plates you should get a TR-6 form from the Registry as proof.
Appeal – If you want to appeal your vehicle value you must appeal to the State. You can get an appeal form from the Assessor’s office and return it to the Assessor’s office where it will be forwarded to the State Vehicle Value Commission.
Questions? Please contact the Assessor's Office at 401.435.7574.