Rhode Island taxpayers who paid their quarterly car registration fees for 2017 on Sept. 1 could be getting a credit or refund check in the mail from the Rhode Island Department of Transportation, after a provision in the state’s budget authorized a five-year plan to phase the state’s car tax out.
The budget also targets other issues relevant to the transportation community, with funds to the Rhode Island Clean Diesel Fund cut in half. The program, created in 2016, is used to “reduce emissions from heavy-duty diesel engines operating on state roads and help companies improve supply chain efficiency.”
Car Tax Disputes Cause R.I. Budget Delay
Concern over proposed reductions in the state’s car tax program, which levies fees on vehicle owners based on their municipality and vehicle type, prompted a nearly month-long standoff between members of the Rhode Island General Assembly.
A decision on changes to the provision were tabled for another time, and Gov. Gina Raimondo signed the budget into law on Aug. 4, a month into the new fiscal year. The budget calls for a five percent reduction in a vehicle’s value in the first year, which is 2017.
Due to the late authorization, many car owners in the state had already paid their quarterly car tax, and are now owed a credit or refund.
R.I. Clean Air Programs Funding Takes a Hit
The new legislation reduces the $1.9 million in funding for the state’s clean emissions programs to just $1 million.
Rhode Island’s Clean Diesel Fund, which is operated through the Rhode Island Department of Emergency Management (RIDEM), was created in 2016 for the purpose reducing emissions from heavy duty diesel vehicles operating on Rhode Island roads. The funds were eligible to be used for:
- Vehicle replacements
- Replacement or upgrades of transport refrigeration units (TRUs)
- Engine repowers
- Diesel emissions reduction solutions
- Clean alternative fuel conversions
- Idle reduction technologies
- Aerodynamic technologies
- Low-rolling resistance tires
- Routine maintenance shown to improve fuel efficiency or decrease emissions including, oil changes and cleaning of diesel particulate filters
Legislature Spokesman Larry Berman said the reduction was simply a consequence of having to make cuts.
It was a case of the projected revenues falling short of estimates, which meant there was less money to spend in the budget than was originally anticipated,” he said in an interview with Transport Topics.
Applications for projects funded by the program were due May 9; it’s unclear how many projects will be approved going forward.
Trucking Industry Opposes R.I. State Infrastructure Program
Rhode Island’s flagship transportation infrastructure program, RhodeWorks, is also a contentious issue for state leaders. Created by Gov. Raimondo in 2016, the program is opposed by many organizations, including the Rhode Island Trucking Association (RITA) and the American Trucking Association (ATA).
The biggest complaint is the “truckers-only toll” which allows drivers of commercial tractor trailers to be singled out on toll roads under the RhodeWorks program.
House Minority Leader Patricia Morgan proposed legislation in April that would repeal the toll, and said it would unfairly target small business owners.
It will add to our already high cost of living, making it more difficult for average Rhode Islanders to keep their head above water. It will undoubtedly hurt our small businesses, who are struggling to remain competitive with rivals in other states not burdened with the extra shipping costs. In other words, it will had more weight to an economy that is already dead last,” Morgan said before she introduced the legislation.