Walaska bill would amend auto tax valuation method

Posted 1/29/14

When the state, several years ago, eliminated the $6,000 statewide auto excise tax exemption, allowing cities and towns to lower the exemption to as little as $500, owners of vehicles once untaxed …

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Walaska bill would amend auto tax valuation method

Posted

When the state, several years ago, eliminated the $6,000 statewide auto excise tax exemption, allowing cities and towns to lower the exemption to as little as $500, owners of vehicles once untaxed began receiving tax bills, while others were being taxed on a vehicle that was suddenly assessed as much as $5,500 more than in the previous year.

Further complicating matters and aggravating owners of older cars, vehicles were being assessed at their “clean retail” value rather than on what they were actually worth, increasing many tax bills.

Years may have passed, but Sen. William A. Walaska (D-Dist. 30, Warwick) is still trying to ease the extra tax burden on residents in his community and around the state.

“Just because auto owners have gotten used to a higher bill during the past few years does not make things right,” he said. “With the elimination of the excise tax exemption at the state level, some communities saw an open door to grabbing more money from their residents. Instead, they should have been looking for ways to make the hike as painless as possible.”

Walaska has introduced legislation again this year offering one method to lower the tax bills for some auto owners – assess vehicles based on the average trade-in price, rather than clean retail value.

“There are vehicles on the road that, because of their age and condition and mileage, would sell for a lot less than the clean retail value listed in some ‘authoritative’ book somewhere,” Walaska said. “The value of that car, and the tax imposed on it, should be based on what it is really worth, not what some publication thinks it is worth in mint condition.”

The Walaska legislation, 2015-S 0023, would allow for an appeal process on municipal excise tax valuations that permits the auto owner to present to the tax assessor a certified appraisal from a licensed motor vehicle dealer of the actual value of the car. The bill would also allow 45 days for vehicle owners to file an appeal of a tax bill, compared to the 30 provided in current law.

“State residents pay a lot of taxes, and this is just one extra burden that’s been added on over the last few years,” Walaska said. “I think amending the assessment method will ease the expense for many people. I don’t think Rhode Islanders mind paying taxes, if they are fair. My legislation is all about making this tax fair.”

The bill has been referred to the Senate Committee on Finance and is co-sponsored by Sen. Frank A. Ciccone III (D-Dist. 7, Providence, North Providence), Sen. Donna M. Nesselbush (D-Dist. 15, Pawtucket, North Providence), Sen. Walter S. Felag Jr. (D-Dist. 10, Warren, Bristol, Tiverton) and Sen. Frank Lombardo III (D-Dist. 25, Johnston).

Walaska has introduced three other pieces of legislation intended to bring some tax relief to retirees, businesses and inheritors of estates in Rhode Island.

“There is no disputing the fact that we are a very heavily taxed state,” the senator said, “and that not only causes financial hardships for our residents, but it also makes us less attractive for businesses that might want to operate here. The three bills I have introduced are designed to bring some immediate tax relief and, perhaps as a result, make Rhode Island a more welcoming place for people to live, retire and run a business.”

The three tax relief bills introduced by Walaska are:

2015-S 0019, which would reduce the minimum corporation tax from the current $500 to $250. Sent to the Senate committee on Finance, it is co-sponsored by Ciccone, Lombardo, Sen. Leonidas P. Raptakis (D-Dist. 33, Coventry, East Greenwich, West Greenwich) and Sen. Frank S. Lombardi (D-Dist. 26, Cranston).

2015-S 0029, which would exempt Social Security benefits from the Rhode Island state income tax. Sent to Senate Finance, it is co-sponsored by Sen. James C. Sheehan (D-Dist. 36, Narragansett, North Kingstown) and Ciccone, Nesselbush and Felag.

2015-S 0034, which would increase the estate and transfer tax exemption to $2.5 million. Co-sponsored by Ciccone, Felag, Lombardo and Lombardi, it also has been referred to the Committee on Finance.

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  • Thecaptain

    Bill Walaska should be ashamed of himself and the people that vote for him should get themselves educated on this particular subject. Here are the facts:

    I, Rob Cote, authored the verbiage on the original Car Tax Reform Bill which was entered on my behalf by Rep. Joe Macnamara and subsequently by Rep. Joe Shekarchi. The language in the bill was actually finalized through numerous phone conversations between myself and Joe Mac's legal team. Joe Mac, held an informal meeting at the statehouse in early Jan. 2012 after Warwick residents flooded city hall several times with auto valuation concerns. Walaska failed to attend any of the Warwick City Hall meetings although he was asked to attend by dozens of residents who contact him by phone. Walaska did attend Macnamara's Jan. 2012 meeting at the state house but offered nothing and did not speak one word and was clearly only there for the possible photo op, along with other Warwick Reps that have never attended a City Council meeting on the issue.

    At that meeting we all agreed that the portion of the bill that contained the language of a "certified appraisal" would be removed due to the possible implications of manipulations of values by "certified dealers". After all, remember, this IS Rhode Island. Everyone agreed that the cleanest form of the bill simply amended the existing bill from the words "clean retail value" to "average trade in value".

    So the question is "What actually has Walaska done on this issue"? The answer is NOT A THING. Walaska copied the original draft of the bill which was amended and put forth for hearings for the past 3 years. The writer of this article fails to mention several critical facts.

    1. Walaska simply copied a bill draft and put zero effort into the issue.

    2. Walaska has never attended any of the Vehicle Value Commission meetings on the methodology discussions for the following tax year.

    3. Walaska has never scheduled a hearing for his "proposed bill", so the bill is useless as it has never been heard in committee.

    4. Once a year Walaska puts out his mailer titled "THE WALASKA REPORT" where he touts that he is championing the car tax reform.

    The fact of the matter is that Bill Walaska has done nothing to further any conversation about how cars are taxed and in fact, doesn't even understand how the statute has been written. He uses this issue, and the people affected by it for political face time. If Walaska had any clue he would be jumping all over the fact that the statute calls for 7 members, there have only been 4 appointed, and only 2 show up at the meetings. If Walaska had any clue he would question why Peter Schaffer and Dan Beardsley of the League of Cities and Towns, have asked for further study for 3 years, yet no further study has been performed, no one is held obligated to perform the further study, and no date final for the further study has been established.

    As far as the car tax reform bill, Walaska is in the back seat and has never been in the drivers seat. This is why Rhode Island is the way it is. Frauds and liars for officials that are unable to solve problems. Walaska and his voting base should get educated on the subject matter at hand.

    Friday, January 30, 2015 Report this