Time to pay the car tax in Lincoln

Lincoln becomes latest town to send out car tax bills while repeal remains in limbo

LINCOLN – The town is not waiting for the General Assembly to decide the outcome of the proposed car tax phase out proposal contained in the state budget and has decided to put car tax bills - without the phase out - in the mail early next month.

Like other cities and towns, Lincoln town officials had been anticipating the ultimate passage of House Speaker Nicholas Matiello’s car tax phase out proposal, which involved $26 million in funding to municipalities to help defray the loss of revenue.

But the General Assembly adjourned without passing a state budget, and the impasse is continuing.

“The town has been delaying sending out motor vehicle tax bills until the state budget is finally passed by the General Assembly,” the town said in a statement released Wednesday. “Unfortunately, it

now appears a final vote on the state budget may not take place before September. The conflict is primarily based on the details of the motor vehicle phase-out legislation, so it does impact our motor vehicle billing process.”

Saying it does not want create any further confusion and can no longer wait for the General Assembly to settle the question, the town is now preparing to send out car tax bills the first week of August.

According to town officials, the bill will be based on the existing law or, in other words, the same as last year. The first quarterly payment due date will be delayed until Aug. 31.

If state lawmakers do end up passing a fiscal 2018 budget that includes a reduction in the car tax, the town will make a decision then as to whether it will offer vehicle owners a credit on future taxes or a rebate

“After the conflict at the State House is resolved, any adjustment to the motor vehicle tax bill will be calculated and applied to a taxpayer’s unpaid balance as a credit or, if necessary, a refund will be processed,” the town said its statement.

Last month, Rhode Island’s Senate passed an amended $9.2 billion state budget plan that had no chance of passing the House, because that chamber’s members had been sent home earlier by Mattiello.

Mattiello says he ended the session when he learned the Senate planned to make a last-minute change to the budget, which would block further increases in reimbursement to towns for lost car-tax revenue if state revenue drops.

The Senate voted 30-5 to pass the amended budget, which was supposed to go into effect that night.

Mattiello had urged the Senate to pass the original budget plan, which had already passed the House and said he has no plans to call the House back into session this summer.

No piece of legislation can be sent to the governor to be signed into law until it’s approved by both chambers.

A Senate spokesman said there was significant concern in the Senate about whether Matiello’s plan to cut car taxes, which is contained in the budget, is sustainable.