East Providence Residents To Pay More Motor Vehicle Taxes

Due to state budgetary shortfalls, East Providence residents will now shoulder the brunt of their motor vehicle taxes, according to the City Assessor's office.

Previously, Rhode Island absorbed the cost of East Providence car taxes up to a $6,000 vehicle value, according to a city news release. Now, in 2011, the state will pay only $500 dollars toward a $6,000 vehicle value.

East Providence residents with a car value of $6,000, who were used to paying nothing in taxes, can now expect to pay a tax bill of $204.05, according to the release. 

The trend does not only pertain to new cars, the city noted. Because of a still recovering economy, the city observed a spike in used car sales. This trend among consumers has contributed to the demand for and overall value of used cars, which means that residents who were once immune to taxes under the previous tax system are likely to see a bill of some amount.

The shifting in car taxes is determined by the State Motor Vehicle Value Commission and is applied to the driver's registration, not the vehicle itself. The City's Assessor's office is therefore encouraging residents to be vigilant regarding the status of their registrations. If a vehicle has been stolen, sold, or just given away, the registration must be canceled, as it will still be considered active and taxes will continue to accrue.

The Assessor's office also stated that the options for local residents to appeal the tax. If interested, the office will provide a form which will then be forwarded to the State Vehicle Value Commission.