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Chippendale Re-Submits Auto Excise Tax Phase-Out Bill

Rep. Michael Chippendale. (Photo: Rhode Island General Assembly)
Rep. Michael Chippendale. (Photo: Rhode Island General Assembly)

Representative Michael Chippendale (R-Dist. 40, Coventry, Foster, Glocester) said today he will introduce a bill to reinstate the automobile excise tax phase out program.  

Chippendale said a similar bill passed years ago, but the General Assembly suddenly cut the program in 2010 – costing RI taxpayers as well as cities and towns millions of dollars.

“Every year, many hardworking Rhode Islanders receive a tax bill for their only means to get to work and earn a living. It is time to listen to the people and remove this burden once and for all," Chippendale said in a release.

Chippendale’s bill is part of the House Republican’s “Getting to 25” program, which was created to bring Rhode Island into the mainstream on financial matters.  

"Rhode Island ranks as the 8th highest taxed state in the nation according to the Tax Foundation," the release stated. "Rhode Islanders pay more in state and local taxes than 82% of other states; simply, Rhode Island is an outlier and at an economic disadvantage compared to other states."

The bill will reinstitute the Motor Vehicle Excise Tax Phase out over a 9 year period.  The exemption amounts will increase by $500 for the next 6 years and by $1,000 for the final 3 years.  The state will reimburse cities and towns for the higher exemption amounts. 

 “Rhode Island was one year away from completing the automobile tax phase-out program before it was substantially cut in 2010. While this change enabled the House to complete the budget for that year, it was done on the backs of Rhode Islanders and cities and towns," Chippendale said.

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