How much should you pay in taxes for your car?
The Rhode Island House Committee on Municipal Government is scheduled to consider a bill tomorrow that would change the way cars are valued — potentially saving car owners thousands of dollars.
Rep. Joseph M. McNamara (D-Warwick, Cranston) sponsored the bill, H-7098, in response to ongoing protests over the way car values are calculated under a 2010 state law.
Currently, the state Vehicle Value Commission sets the worth of automobiles by using what's known as "clean retail value" — basically the current value of the vehicle if it were in perfect condition. McNamara's bill would require the commission to use the average trade-in price, which is typically lower than the clean retail value.
Car owners would also have 45 days — up from 30 days under the current law — to appeal a car valuation by submitting a certified appraisal from a car dealer to their town's tax assessor.
Local tax assessors would have 10 days to decide appeals, with the state value commission no longer taking that role.
What do you think? Should the state change the way cars are valued? Vote in our poll, and add your comments below.
Correction: The explanation of "clean retail value" was corrected following first publication of this article.