2023 Rhode Island General Laws
Title 44 - Taxation
Chapter 44-34.1 - Motor Vehicle and Trailer Excise Tax Elimination Act of 1998
Section 44-34.1-2. - City, town, and fire district reimbursement.
§ 44-34.1-2. City, town, and fire district reimbursement.
(a) In fiscal years 2024 and thereafter, cities, towns, and fire districts shall receive reimbursements, as set forth in this section, from state general revenues equal to the amount of lost tax revenue due to the phase out of the excise tax. When the tax is phased out, cities, towns, and fire districts shall receive a permanent distribution of sales tax revenue pursuant to § 44-18-18 in an amount equal to any lost revenue resulting from the excise tax elimination.
(b)(1) In fiscal year 2024, cities, towns, and fire districts shall receive the following reimbursement amounts:
| Barrington | $ | 5,894,822 | |
| Bristol | $ | 2,905,818 | |
| Burrillville | $ | 5,053,933 | |
| Central Falls | $ | 2,077,974 | |
| Charlestown | $ | 1,020,877 | |
| Coventry | $ | 5,872,396 | |
| Cranston | $ | 22,312,247 | |
| Cumberland | $ | 6,073,469 | |
| East Greenwich | $ | 2,417,332 | |
| East Providence | $ | 11,433,479 | |
| Exeter | $ | 2,241,381 | |
| Foster | $ | 1,652,251 | |
| Glocester | $ | 2,381,941 | |
| Hopkinton | $ | 1,629,259 | |
| Jamestown | $ | 622,793 | |
| Johnston | $ | 10,382,785 | |
| Lincoln | $ | 5,683,015 | |
| Little Compton | $ | 366,775 | |
| Middletown | $ | 1,976,448 | |
| Narragansett | $ | 1,831,251 | |
| Newport | $ | 2,223,671 | |
| New Shoreham | $ | 163,298 | |
| North Kingstown | $ | 5,378,818 | |
| North Providence | $ | 9,619,286 | |
| North Smithfield | $ | 4,398,531 | |
| Pawtucket | $ | 16,495,506 | |
| Portsmouth | $ | 2,414,242 | |
| Providence | $ | 34,131,596 | |
| Richmond | $ | 1,448,455 | |
| Scituate | $ | 1,977,127 | |
| Smithfield | $ | 7,098,694 | |
| South Kingstown | $ | 3,930,455 | |
| Tiverton | $ | 1,748,175 | |
| Warren | $ | 2,090,911 | |
| Warwick | $ | 25,246,254 | |
| Westerly | $ | 5,765,523 | |
| West Greenwich | $ | 1,331,725 | |
| West Warwick | $ | 5,673,744 | |
| Woonsocket | $ | 9,324,776 | |
| Lime Rock Fire District | $ | 133,933 | |
| Lincoln Fire District | $ | 208,994 | |
| Manville Fire District | $ | 64,862 | |
| Quinnville Fire District | $ | 13,483 |
(2) In fiscal year 2024, funds shall be distributed to the cities, towns, and fire districts as follows:
(i) On August 1, 2023, twenty-five percent (25%) of the funds.
(ii) On November 1, 2023, twenty-five percent (25%) of the funds.
(iii) On February 1, 2024, twenty-five percent (25%) of the funds.
(iv) On May 1, 2024, twenty-five percent (25%) of the funds.
The funds shall be distributed to each city, town, and fire district in the same proportion as distributed in fiscal year 2023.
(3) For the city of East Providence, the payment schedule is twenty-five percent (25%) on November 1, 2023, twenty-five percent (25%) on February 1, 2024, twenty-five percent (25%) on May 1, 2024, and twenty-five percent (25%) on August 1, 2024.
(4) On any of the payment dates specified in subsections (b)(2)(i) through (b)(2)(iv) or (b)(3) of this section, the director of revenue is authorized to deduct previously made over-payments or add supplemental payments as may be required to bring the reimbursements into full compliance with the requirements of this chapter.
(c) When the tax is phased out to August 1, of the following fiscal year the director of revenue shall calculate to the nearest thousandth of one cent ($0.00001) the number of cents of sales tax received for the fiscal year ending June 30, of the year following the phase-out equal to the amount of funds distributed to the cities, towns, and fire districts under this chapter during the fiscal year following the phase-out and the percent of the total funds distributed in the fiscal year following the phase-out received by each city, town, and fire district, calculated to the nearest one-hundredth of one percent (0.01%). The director of the department of revenue shall transmit those calculations to the governor, the speaker of the house, the president of the senate, the chairperson of the house finance committee, the chairperson of the senate finance committee, the house fiscal advisor, and the senate fiscal advisor. The number of cents, applied to the sales taxes received for the prior fiscal year, shall be the basis for determining the amount of sales tax to be distributed to the cities, towns, and fire districts under this chapter for the second fiscal year following the phase-out and each year thereafter. The cities, towns, and fire districts shall receive that amount of sales tax in the proportions calculated by the director of revenue as that received in the fiscal year following the phase-out.
(d) In fiscal years 2025 and thereafter, twenty-five percent (25%) of the funds shall be distributed to the cities, towns, and fire districts on August 1, 2024, and every August 1 thereafter; twenty-five percent (25%) shall be distributed on November 1, 2024, and every November 1 thereafter; twenty-five percent (25%) shall be distributed on February 1, 2025, and every February 1 thereafter; and twenty-five percent (25%) shall be distributed on May 1, 2025, and every May 1 thereafter.
(e) For the city of East Providence, in fiscal years 2025 and thereafter, twenty-five percent (25%) shall be distributed on November 1, 2024, and every November 1 thereafter, twenty-five percent (25%) shall be distributed on February 1, 2025, and every February 1 thereafter; twenty-five percent (25%) shall be distributed on May 1, 2025, and every May 1 thereafter; and twenty-five percent (25%) of the funds shall be distributed on August 1, 2025, and every August 1 thereafter.
History of Section.
P.L. 1998, ch. 31, art. 28, § 3; P.L. 1999, ch. 112, § 2; P.L. 1999, ch. 303, § 2; P.L. 2000, ch. 55, art. 19, § 7; P.L. 2000, ch. 74, § 1; P.L. 2002, ch. 65, art. 3, § 1; P.L. 2003, ch. 376, art. 13, § 1; P.L. 2004, ch. 595, art. 11, § 1; P.L. 2005, ch. 117, art. 17, § 3; P.L. 2006, ch. 246, art. 29, § 1; P.L. 2006, ch. 571, § 1; P.L. 2008, ch. 9, art. 17, § 2; P.L. 2010, ch. 8, § 1; P.L. 2010, ch. 23, art. 23, § 1; P.L. 2010, ch. 120, § 3; P.L. 2017, ch. 302, art. 11, § 3; P.L. 2017, ch. 307, § 1; P.L. 2023, ch. 203, § 2, effective July 1, 2023; P.L. 2023, ch. 204, § 2, effective July 1, 2023; P.L. 2023, ch. 294, § 6, effective June 22, 2023; P.L. 2023, ch. 295, § 6, effective June 22, 2023.
