NOTE TO RESIDENTS: Tax Bills will go out week of July 4, 2022
City of East Providence
Office of the Mayor
Roberto L. DaSilva
Mayor
June 23, 2022
Re: Motor Vehicle Tax Phase-Out
Dear Resident,
The Rhode Island General Assembly enacted legislation to enable the City of East Providence to advance East Providence’s motor vehicle tax phase-out by one year.
The City’s fiscal year is not aligned with the fiscal year of our state. Because of this, the City’s car tax phase-out started a year later than all of the other Rhode Island municipalities.
| * Local FISCAL YEAR | Percentage of NADA Value Allowed | Minimum Total MV Exemption Amount | Maximum MV Tax Rate |
|---|---|---|---|
| 2018 | 95% | $1,000 | $60 |
| 2019 | 90% | $2,000 | $50 |
| 2020 | 85% | $3,000 | $35 |
| 2021 | 80% | $4,000 | $35 |
| 2022 (EP Originally proposed phase-out.) | 75% | $5,000 | $30 |
| 2023 (EP accelerated to this year.) | 70% | $6,000 | $20 |
While all the other municipalities were preparing to enter the 2023 local fiscal year phase-out schedule, East Providence was starting to enter the 2022 local fiscal year phase-out schedule as represented in this chart.
PER CURRENT STATE LEGISLATION, THIS IS YOUR FINAL MOTOR VEHICLE TAX BILL. NEXT YEAR THE CAR TAX WILL BE ELIMINATED COMPLETELY.
The original state budget would have kept East Providence on the local fiscal year 2022 schedule, and not eliminated the car tax until fiscal year 2023.
Working with Gov. Dan McKee and our local General Assembly delegation, my Administration was able to advance the phase-out by one full year. This allowed the Administration to remove 3,300 vehicles from the tax roll, and it cut the average motor vehicle tax bill by about 40 percent to 50 percent.
Because of the advance of the phase-out by one year, a car valued at $10,000 (taxable value) will now have a tax bill of $20, instead of a tax bill of $75.00 if the legislation was not amended for the benefit of East Providence residents.
Next year, the motor vehicle car tax will be completely eliminated for all residents under the current law. Because the Administration was working to implement this change to benefit you, the motor vehicle tax bill had to be delayed.
NEW DUE DATES FOR 2022 MOTOR VEHICLE BILLS ONLY:
1st quarter August 1, 2022
2nd quarter October 1, 2022
3rd quarter is December 1, 2022
4th and final quarter is March 1, 2023
In order to receive the discount of 1.5% on the motor vehicle bills you MUST pay your bills in FULL by August 1, 2022. This applies to motor vehicle bills only.
These due date changes DO NOT apply to the real estate and tangible personal property tax bills. The due dates for those bills are still July 1, 2022, September 1, 2022, December 1, 2022 and March 1, 2023. All other real estate and tangible personal property bills must be paid in full by July 1, 2022 still to receive the 1.5% discount.
Please be sure to go directly through our city's website to make tax payments, and update any bookmarked links as we have changed our tax software. Any old bookmarked links will result in incorrect information and inability to make tax payments.
The Tax Collection Division processes, collects, and records all tax, water and sewer payments for the City. Tax Collection is located on the first floor of City Hall in Room 104. Our mission in the Tax Collection Division is to provide residents with fast, accurate payment processing, and with a courteous resolution of any payment issues that they may have. We aim to exceed the expectations of our resident customers.
IMPORTANT INFORMATION
- There is a seven-day (calendar day) grace period for the quarterly payments only. There is no grace period for the discount amount.
- Failure to receive a bill does not void your responsibility to pay it.
- Residents should have bills and other forms with them when visiting the Tax Collection office.
- When the first quarter payment is missed, the entire bill becomes due in full.
- All returned EFT payments made online will be charged a $15 fee.
- The real estate bills are for the current calendar year.
- The motor vehicle bills and tangible tax bills are for the prior calendar year. For more information on tangible tax bills, please visit the Assessors Division.
- Motor vehicle bills must be current in order to receive clearance to Register with the RI Department of Motor Vehicles. If you require a clearance to register your car, payment MUST be made in full and be paid in cash or by banker's check.
- License plates must be turned into the RIDMV or canceled virtually in order to avoid further charges.
- Tax bills are issued by June 1.
- All exemption and valuation questions are handled by the Assessors Division.
- Please refer to the back of your bill for more information.
TAX OFFSET PROGRAM
Under RIGL 42-142-7 (e) the City is allowed to attach your State income tax refund if you are not current on any bill due to the City.
You were notified of this in October with a past due letter. There is not a 100 percent guarantee that the City will receive money, or how much, from your income tax refund.
If you believe your account is now overpaid, you MUST provide us with a copy of the letter you received from the State stating that they sent us the funds. You can fax a copy to (401) 435-1908. Refunds take 2-3 weeks to process.
TAX SALE INFORMATION
The City holds a tax sale annually in April for properties with past-due water and tax bills. The 2022 tax sale has not yet been determined.
Please call us for current redemption information.
